USPS Enlists DOGE Reform Team Amidst Financial Struggles and Privatization Concerns
Washington, D.C. – The United States Postal Service (USPS), grappling with persistent financial losses and declining mail volume, has entered into an agreement with DOGE, a government reform team spearheaded by Elon Musk, to assist in addressing the agency’s multifaceted challenges. Postmaster General Louis DeJoy informed Congress of the collaboration, citing the potential for identifying and implementing efficiencies within the organization.
USPS, an independent government entity employing 635,000 individuals, reported a staggering $9.5 billion loss in the previous year, highlighting the urgency of its financial situation. Despite government-wide efforts to reduce federal employment under DOGE directives, USPS has been granted an exemption, acknowledging its unique operational demands. DeJoy outlined plans to reduce the postal workforce by 10,000 positions within the next month through a voluntary early retirement program, building upon the 30,000 job cuts implemented since 2021.
The partnership with DOGE and the General Services Administration (GSA) aims to leverage the reform team’s expertise in identifying and implementing strategies to streamline USPS operations. DeJoy emphasized the collaborative nature of the agreement, noting that DOGE proactively sought to address the agency’s most pressing issues. DOGE has been actively involved in government-wide efforts to cancel contracts and reduce the size of government agencies, raising questions about the potential scope and impact of its involvement with USPS.
DeJoy identified several critical areas where DOGE assistance could prove beneficial, including the management of retirement assets and the workers’ compensation program, both currently overseen by other government entities. He also highlighted the burden of unfunded mandates and stringent regulatory requirements imposed upon USPS, hindering its ability to operate efficiently.
DeJoy has been at the forefront of a significant restructuring effort within USPS over the past five years, aiming to mitigate projected losses from $160 billion to $80 billion over a decade. These efforts have mirrored DOGE’s tactics, focusing on workforce reduction and the renegotiation or cancellation of contracts.
DeJoy also criticized the Postal Regulatory Commission (PRC), labeling it as an unnecessary agency that has inflicted over $50 billion in damage to the Postal Service through flawed pricing models and outdated bureaucratic processes. The PRC vehemently refuted DeJoy’s claims, arguing that USPS had squandered $100 billion in financial assistance from Congress and the commission, leading to increased financial losses, reduced efficiency, and declining service quality, particularly for rural communities.
Representative Gerald Connolly, the leading Democrat on the committee overseeing USPS, expressed concerns about DOGE’s involvement, suggesting that it could undermine the agency, ultimately leading to its privatization and potential profit-making at the expense of American citizens. GSA and DOGE have not yet issued public statements regarding the agreement or the concerns raised by Representative Connolly.
Recent reports indicated that President Donald Trump was considering issuing an executive order to dismiss the Postal Service board of governors, but the White House denied these plans. Trump also floated the idea of merging USPS with the U.S. Commerce Department, a proposal that Democrats argued would violate federal law.
Musk, a billionaire and top advisor to Trump, has publicly advocated for the privatization of USPS. Commerce Secretary Howard Lutnick suggested that USPS could assist in reducing departmental costs by providing personnel to conduct the U.S. census and perform tasks currently handled by 20,000 Social Security employees.
USPS is implementing new service standards projected to save the agency at least $36 billion over the next decade. However, the agency has accumulated over $100 billion in losses since 2007. Recently, USPS reported a fourth-quarter profit of $144 million.
The proliferation of electronic communication has significantly impacted USPS, resulting in an 80% decline in first-class mail volume since 1997. Current mail volumes are at their lowest level since 1968.
DeJoy announced his intention to depart from his position after approximately five years. The agreement with DOGE and the ongoing debates surrounding the future of USPS highlight the critical challenges facing the agency as it seeks to adapt to the evolving landscape of communication and navigate the complexities of government oversight and political influence.
The situation remains volatile with ongoing political debates about USPS’s future.
