Where Does USPS Money Come From?

Where does USPS money come from

Receiving tax dollars is the only way for the federal government to fund its day-to-day operations. From giving the Federal Bureau of Investigations the resources it needs to crack down on crime to the ensuring the Food and Drug Administration has the resources is needs to promote a healthy food supply, tax dollars work hard to support America. With so many federal agencies that receives tax dollars, it may surprise some to learn that there is one that doesn’t receive any.

The U.S. Postal Service is not a tax payer funded organization. Instead, USPS receives its operating cash from business revenue. Stamps, packages, PO Box rentals, and other revenue generating activities fund operations. Sales dollars, not tax dollars, pay for fuel, employee paychecks, mail processing efforts, and all other expenses the Postal Service incurs.

The next time somebody inaccurately suggests that the Postal Service is a taxpayer-funded organization, politely remind them that USPS is a self-sustaining organization and receives no tax dollars its for day-to-day operations.


1 Comment

  1. Grannybunny

     /  June 4, 2013

    Not only does USPS not receive taxpayer funding, it regularly “bails out” the taxpayers. The money deposited to prefund future USPS retiree health benefits is being used for non-Postal spending. USPS’ CSRS and FERS accounts are hideously overfunded, bolstering the underfunded retirement accounts of non-Postal retirees. OWCP recently revealed that if the Postal Service quit paying for the benefits of its injured employees — who represent only 40% of FECA beneficiaries — there would be no money to pay anyone’s benefits, suggesting yet another overpayment situation.

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