The Postal Service is aggressively reducing expenses, including organizational redesign initiatives. The Postal Service projects $1.2 billion to $1.6 billion in cost savings in fiscal year 2011, including a reduction of workhours across the organization. Benefits of these initiatives, however, may be offset by rising fuel prices.

The Postal Service receives no tax dollars for operating expenses, and relies on the sale of postage, products and services to fund its operations.