Debt-ridden Postal Service Faces Default

By:  Jack Kenny
09/06/2011
       
Debt-ridden Postal Service Faces Default

Post Offices through the country may be closed early next year unless Congress either makes an emergency appropriation or changes the laws governing the debt-ridden U.S. Postal Service, the New York Times reported Monday.

"Our situation is extremely serious," Postmaster General, Patrick R. Donahoe, told the Times. "If Congress doesn't act, we will default." Members of Congress, returning from their August recess are facing the second default crisis in as many months, having averted a threatened default of the federal government with bitterly fought over legislation authorizing an increase in the nation's debt ceiling on August 1. 

The Senate Homeland Security and Governmental Affairs Committee will hold a hearing on the agency's predicament on Tuesday. It may consider some of the proposals Donhoe has made in recent weeks for eliminating the $9.2 billion deficit for the current fiscal year, ending September 30.

Post Offices through the country may be closed early next year unless Congress either makes an emergency appropriation or changes the laws governing the debt-ridden U.S. Postal Service, the New York Times reported Monday.

"Our situation is extremely serious," Postmaster General, Patrick R. Donahoe, told the Times. "If Congress doesn't act, we will default." Members of Congress, returning from their August recess are facing the second default crisis in as many months, having averted a threatened default of the federal government with bitterly fought over legislation authorizing an increase in the nation's debt ceiling on August 1. 

The Senate Homeland Security and Governmental Affairs Committee will hold a hearing on the agency's predicament on Tuesday. It may consider some of the proposals Donhoe has made in recent weeks for eliminating the $9.2 billion deficit for the current fiscal year, ending September 30.

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