WASHINGTON, D.C. (WOWO) The United States Postal Service is warning lawmakers that it could run out of cash within the next year unless significant financial reforms are approved.

Postmaster General David Steiner told a House Oversight subcommittee that the agency is facing mounting losses and limited financial flexibility, prompting calls for higher stamp prices and expanded borrowing authority. He said first-class mail stamps, currently priced at 78 cents, may need to increase to one dollar or more to help stabilize finances, according to Fox Business.

The Postal Service has already reached its borrowing limit of 15 billion dollars, restricting its ability to take on additional debt as it continues to manage long-term obligations and declining revenue. Officials say first-class mail volume has dropped sharply over the past two decades, falling to levels not seen since the late 1960s.

Steiner also outlined potential cost-cutting measures, including reducing delivery to five days per week or closing certain post office locations, though he acknowledged those options could face resistance.

The agency has reported more than 100 billion dollars in losses since 2007 and continues to navigate rising costs tied to retiree benefits and pensions, according to Fox Business.

Federal auditors have also warned that without structural changes, the Postal Service could face billions in additional annual expenses in the coming years, adding urgency to the push for reforms.