U.S. Postal Service nears $5.5 billion default

Despite recent efforts to cut costs and erase the agency's mounting deficit, the United States Postal Service could default on a $5.5 billion payment to

WOODBURY - Despite recent efforts to cut costs and erase the agency's mounting deficit, the United States Postal Service could default on a $5.5 billion payment to its employee health care plan.

According to the New York Times, the postal service may be forced to shut down for the winter in order to save money. Postmaster General Patrick R. Donahoe has been pushing a series of measures to reduce the $9.2 billion deficit, including layoffs of 120,000 workers, closures of 3,700 post offices and eliminating Saturday mail delivery.

Donahoe and others will testify before the Senate Homeland Security and Governmental Affairs Committee about preventing a postal service shutdown at a hearing tomorrow afternoon.

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