USPS chief Louis DeJoy has detailed four changes needed at the agency while warning that post offices are at risk of disappearing.
Postmaster DeJoy called for immediate action as he sounded the alarm about the failing federal program in a letter to Congress this week.
Without intervention, the agency could encounter additional closures, delays, and disruptions that have already inconvenienced millions of Americans, he emphasized.
In the letter, DeJoy asked the Department of Government Efficiency for help in addressing four main challenges.
The first concern centers around leases for USPS’ post offices and retail centers.
In the letter, he cautioned about the “challenges ahead in renewing leases due to ownership consolidation, urban development, and overall rises in rental costs upon the expiration of leases that have lasted for decades.”
DeJoy said the agency is also battling a surge in counterfeit postage, which is costing an estimated $1 billion annually.
He wants help looking for “additional innovative solutions” to crack down on the fraud.
The third issue he noted was federal laws burdening the Postal Service.
He said unfunded congressional mandates are costing USPS between $6 billion and $11 billion every year.
And lastly, he highlighted regulatory restrictions that have piled on $50 billion in losses.
He blasted the Postal Regulatory Commission for getting in the way of “normal business practice” with “defective pricing models.”
DeJoy, who announced in February that he plans to step down at an undisclosed date, signed a deal with Elon Musk’s DOGE last week.
He blamed existing legislation for hindering progress under his Delivering for America plan, which aims to overhaul the agency.
“DOGE is the only other game in town that seems oriented toward helping us to achieve our efficiency and cost goals,” he wrote.
As part of his cost-cutting strategy, DeJoy plans to eliminate 10,000 jobs and slash billions from the USPS budget.
President Donald Trump has suggested the concept of combining USPS with the Commerce Department as a solution to prevent substantial financial losses, emphasizing the necessity for changes.
Kevin Yoder, executive director of the advocacy group Keep US Posted and a former Republican congressman, slammed DeJoy’s leadership.
Four changes to USPS
- Retail Leases: DeJoy asked for help reviewing nearly 31,000 retail centers and the challenges of renewing leases due to ownership consolidation, urban development, and rising rental rates as long-term leases expire.
- Counterfeit Postage Crackdown: DeJoy highlighted USPS is combating an estimated $1 billion issue with counterfeit postage and called for “additional innovative solutions” to tackle the problem.
- Federal Laws: DeJoy stated unfunded congressional mandates imposed by legislation are costing USPS between $6 billion and $11 billion annually.
- Regulations: DeJoy criticized “burdensome regulatory requirements” that limit USPS’s ability to operate normally, estimating that the Postal Regulatory Commission has caused over $50 billion in damage with defective pricing models.
Source: AXIOS
“The first and most important cost-cutting action should be to fire DeJoy,” Yoder told Axios.
And the bad news doesn’t stop there for customers.
Stamp prices are set to rise again as DeJoy follows through on his plan to hike rates five times through 2027.
Yoder called the increase a “gut punch” to Americans who rely on USPS, warning that rates could jump as much as 11.6% in July for some mail products.
The agency has struggled with declining mail volume, rising costs, and operational inefficiencies, leaving many questioning its long-term survival.
