The United States Postal Service has now defaulted on a $5.5 million payment to the US Treasury.
There are not expected to be immediate effects towards service, however the postmaster general, Patrick Donahoe, has asked Congress for permission to make cuts.
Included in the cuts would be the elimination of 150,000 positions, a move extremely unpopular amongst postal unions.
Other measures would be the elimination of Saturday delivery and closure of nearly half of the current processing facilities.
Donahoe says that the measures would allow the USPS to regain long term financial stability.
Such moves would have to be approved by Congress, before they could become reality.
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