US Postmaster General Signs Postal Reform Agreement With DOGE & GSA.

toner · 2025-03-26T14:36:50+00:00

Postmaster General DeJoy Partners with DOGE and GSA to Drive Postal Service Efficiencies. Last week, Postmaster General Louis DeJoy signed a groundbreaking agreement with the Elon Musk-backed Department of Government Efficiency (DOGE) and the General Services Administration (GSA). The agreement aims to tackle inefficiencies within the U.S. Postal Service (USPS) and eliminate waste in its operations. DeJoy’s initiative comes on the heels of his call for the abolition of the Postal Regulatory Commission (PRC), the body that provides oversight for USPS operations. Additionally, DeJoy revealed plans to cut 10,000 USPS jobs through a voluntary early retirement program over the next 30 days. Despite previously announcing his intention to step down from his role, DeJoy is pushing forward with his controversial 10-year "Delivering for America" turnaround plan, introduced in 2021. The plan focuses on transforming the USPS, which has faced financial challenges, including a $9.5 billion loss in its most recent fiscal year. Part of the strategy includes a shift towards more package deliveries, alongside frequent postal rate hikes and slower mail delivery service standards. DeJoy's Push for Postal Service Reform In a letter to Congress on March 13, DeJoy emphasized the need for extensive reform, highlighting several long-standing issues that DOGE and GSA could help address. Among the priorities listed were: Mismanagement of Postal Service Retirement Funds: DeJoy criticized the current investment of USPS retirement funds, which are predominantly held in low-yielding U.S. Treasury bonds. He urged that these funds be shifted to higher-yielding investments to improve returns. Workers' Compensation Program Overruns: He pointed to inefficiencies in the USPS Workers' Compensation Program, which he claims leads to an extra $400 million in costs annually when compared to private sector practices. Unfunded Legislative Mandates: DeJoy also took aim at costly mandates imposed by Congress, suggesting that USPS is being burdened by services it is required to perform without receiving sufficient funding, costing the service between $6 billion and $11 billion annually. The Battle Over the Postal Regulatory Commission One of the most contentious aspects of DeJoy's reform plan is his call for the dissolution of the PRC, which he argues has hindered USPS by enforcing outdated pricing models and inefficient regulatory processes. DeJoy claims that the PRC’s interference has cost USPS more than $50 billion over the years, and its rigid regulatory approach prevents the postal service from adapting to the modern business landscape. In response, the PRC defended its role, noting that recent legal changes have already provided USPS with more pricing flexibility. The commission also criticized DeJoy's “Delivering for America” plan, which it argues has resulted in slower service, especially in rural areas, and is unlikely to generate the projected cost savings. The PRC also warned that DeJoy's plan, which includes changes to mail processing and transportation systems, would likely delay mail delivery and reduce service quality, particularly in rural regions. Industry Reactions and Concerns While some industry groups, like the Coalition for a 21st Century Postal Service, have expressed support for the partnership with DOGE, others remain highly critical of DeJoy's approach. These groups point to significant service slowdowns, drastic price hikes, and operational inefficiencies since the rollout of the "Delivering for America" plan. They argue that USPS has lost over 12% of its customer base since 2020 and that the aggressive rate increases, including another 7-10% hike planned for July, are unsustainable for the service's future. Advocacy groups, including Keep US Posted, are also pushing back against the looming postal rate increase. They argue that the proposed hikes will place an undue financial burden on Americans, especially in rural areas, and advocate for a freeze on rates to stabilize the system. The Road Ahead for USPS With DeJoy's departure on the horizon, many are calling for a broader, more thoughtful discussion on how to ensure the long-term viability of USPS. As the service grapples with financial challenges and evolving demands, the push for modernization and operational efficiency will remain central to the debate, especially as rate hikes and service cuts continue to stir controversy. The outcome of DeJoy's reforms will likely shape the future of USPS for years to come.

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toner
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Postmaster General DeJoy Partners with
DOGE and GSA to Drive Postal Service Efficiencies.
Last week, Postmaster General Louis DeJoy signed a groundbreaking agreement with the Elon Musk-backed Department of Government Efficiency (DOGE) and the General Services Administration (GSA). The agreement aims to tackle inefficiencies within the U.S. Postal Service (USPS) and eliminate waste in its operations. DeJoy’s initiative comes on the heels of his call for the abolition of the Postal Regulatory Commission (PRC), the body that provides oversight for USPS operations. Additionally, DeJoy revealed plans to cut 10,000 USPS jobs through a voluntary early retirement program over the next 30 days.

Despite previously announcing his intention to step down from his role, DeJoy is pushing forward with his controversial 10-year “Delivering for America” turnaround plan, introduced in 2021. The plan focuses on transforming the USPS, which has faced financial challenges, including a $9.5 billion loss in its most recent fiscal year. Part of the strategy includes a shift towards more package deliveries, alongside frequent postal rate hikes and slower mail delivery service standards.

DeJoy’s Push for Postal Service Reform
In a letter to Congress on March 13, DeJoy emphasized the need for extensive reform, highlighting several long-standing issues that DOGE and GSA could help address. Among the priorities listed were: Mismanagement of Postal Service Retirement Funds: DeJoy criticized the current investment of USPS retirement funds, which are predominantly held in low-yielding U.S. Treasury bonds. He urged that these funds be shifted to higher-yielding investments to improve returns. Workers’ Compensation Program Overruns: He pointed to inefficiencies in the USPS Workers’ Compensation Program, which he claims leads to an extra $400 million in costs annually when compared to private sector practices. Unfunded Legislative Mandates: DeJoy also took aim at costly mandates imposed by Congress, suggesting that USPS is being burdened by services it is required to perform without receiving sufficient funding, costing the service between $6 billion and $11 billion annually.

The Battle Over the Postal Regulatory Commission
One of the most contentious aspects of DeJoy’s reform plan is his call for the dissolution of the PRC, which he argues has hindered USPS by enforcing outdated pricing models and inefficient regulatory processes. DeJoy claims that the PRC’s interference has cost USPS more than $50 billion over the years, and its rigid regulatory approach prevents the postal service from adapting to the modern business landscape.

In response, the PRC defended its role, noting that recent legal changes have already provided USPS with more pricing flexibility. The commission also criticized DeJoy’s “Delivering for America” plan, which it argues has resulted in slower service, especially in rural areas, and is unlikely to generate the projected cost savings. The PRC also warned that DeJoy’s plan, which includes changes to mail processing and transportation systems, would likely delay mail delivery and reduce service quality, particularly in rural regions.

Industry Reactions and Concerns
While some industry groups, like the Coalition for a 21st Century Postal Service, have expressed support for the partnership with DOGE, others remain highly critical of DeJoy’s approach. These groups point to significant service slowdowns, drastic price hikes, and operational inefficiencies since the rollout of the “Delivering for America” plan. They argue that USPS has lost over 12% of its customer base since 2020 and that the aggressive rate increases, including another 7-10% hike planned for July, are unsustainable for the service’s future.

Advocacy groups, including Keep US Posted, are also pushing back against the looming postal rate increase. They argue that the proposed hikes will place an undue financial burden on Americans, especially in rural areas, and advocate for a freeze on rates to stabilize the system.

The Road Ahead for USPS
With DeJoy’s departure on the horizon, many are calling for a broader, more thoughtful discussion on how to ensure the long-term viability of USPS. As the service grapples with financial challenges and evolving demands, the push for modernization and operational efficiency will remain central to the debate, especially as rate hikes and service cuts continue to stir controversy. The outcome of DeJoy’s reforms will likely shape the future of USPS for years to come.
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March 26, 2025 at 2:36 PM

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