US Postmaster General Louis DeJoy has entered into an agreement with the Department of Government Efficiency (DOGE) and the General Services Administration to collaborate with the US Postal Service. In a letter to Congress, DeJoy stated that DOGE teams will assist in identifying and achieving further efficiencies. The focus will be on improving the management of USPS retirement assets and the Workers’ Compensation Program, as well as addressing legislative mandates and regulatory requirements.
DeJoy noted in the letter that the Postal Service has a broken business model that is not financially sustainable without fundamental core changes. Since 2021, the Postal Service has cut approximately 30,000 employees and plans to reduce another 10,000 through a voluntary early retirement program. Currently, the agency employs around 635,000 workers nationwide.
DeJoy, appointed by President Donald Trump in 2020, announced last month his intention to step down as Postmaster General. He criticized the mismanagement of USPS retirement assets and the Workers’ Compensation Program, which he claims have created significant financial challenges.
Additionally, DeJoy described the Postal Regulatory Commission as an unnecessary agency that has caused over $50 billion in damage to the Postal Service through defective pricing models and outdated bureaucratic processes.
Elon Musk recently suggested that the Postal Service and Amtrak should be privatized. USPS is currently in the midst of a reorganization initiative called Delivering for America, aimed at cutting costs and improving efficiency. Despite this, the plan has faced criticism due to poor mail performance.
By law, the Postal Service is self-funded but has been losing money for years. Recently, it reported $144 million in net income for the final three months of 2024, marking its first profitable quarter since April through June 2022. However, it posted a $9.5 billion net loss in the fiscal year ending in September, up from a $6.5 billion loss the previous year.
Democrats have criticized DeJoy’s decision, as DOGE continues to reduce the federal workforce. Rep. Gerry Connolly warned that handing over the Postal Service to Elon Musk and DOGE could undermine and privatize the service, leading to profit from Americans’ loss.
Trump has expressed interest in changing the USPS, potentially giving the secretary of commerce authority over the organization, which could be a step towards privatization.
— news from CNN