Will Elon Musk Make Postal Service Cuts? What To Know After DOGE Signs Agreement With Louis DeJoy
Key Facts
DeJoy signed a deal Wednesday with the General Services Administration and DOGE to “assist us in identifying and achieving further efficiencies,” the postmaster general said in a letter to lawmakers Thursday, saying he was “happy to have others assist us in our worthwhile cause.”
DeJoy is a Republican who has long sparked controversy at the agency for imposing cost-cutting moves, which critics have argued has resulted in mail delays and other cuts to service.
The postmaster general asked lawmakers to review a list of proposed areas that he asked DOGE officials to help with, including making changes to workers benefits and the Postal Regulatory Commission that oversees the regulations governing USPS.
Most notably, DeJoy said he asked DOGE to review the “unfunded mandates” that Congress has forced USPS to follow, which include the agency’s obligation to deliver mail six days a week, maintain post offices in rural areas, have uniform rates for first-class mail and provide free P.O. boxes to residents whose homes are not served by mail carriers.
DeJoy’s letter comes after The Washington Post reported Feb. 20 President Donald Trump wants to fire USPS’ board of directors and move the agency to be under the Department of Commerce—potentially the first step toward trying to privatize USPS, which Trump has long floated and reportedly discussed with Commerce Secretary Howard Lutnick ahead of his inauguration.
USPS and the White House have not yet responded to requests for comments about what DeJoy’s agreement could mean for the Postal Service.
What To Watch For
It’s still unclear what will happen to USPS and to what extent DOGE will try to make cuts at the agency. Any efforts to cut service or for Trump to change the agency’s structure are also likely to result in court challenges. Experts cited by The Post suggest Trump moving USPS to the Department of Commerce via executive order would violate federal law, and the mandates requiring USPS to deliver mail to all Americans six days a week were passed by Congress, so Trump and DOGE could not unilaterally get rid of any of those requirements without lawmakers’ support. Trump’s plans could also face opposition in Congress, as though GOP lawmakers have typically been very willing to support the president’s policy goals, many lawmakers who represent rural areas have historically been critical of any cuts to the agency that affect their constituents’ service.
Chief Critic
Rep. Gerry Connolly, D-Va., accused DeJoy on Thursday of turning over USPS to Musk and DOGE “so they can undermine it, privatize it, and then profit off Americans’ loss,” saying any cuts will particularly hurt “those in rural and hard to reach areas—who rely on the Postal Service every day to deliver mail, medications, ballots, and more.” “Reliable mail delivery can’t just be reserved for MAGA supporters and Tesla owners,” the lawmaker said.
What Has Trump Said About Usps?
Trump suggested in December he was open to privatizing USPS, saying it was “not the worst idea I’ve ever heard” and his team was “looking at it.” The president has more recently signaled trying to bring USPS under the Commerce Department, saying in February Lutnick is “looking at” the mail agency and floating “a kind of merger” between the two agencies. “We think we can turn it around,” Trump said. Trump has long been a critic of USPS in its current form, repeatedly decrying the agency during his first term and suggesting it should raise its prices. The president called USPS a “joke” in April 2020, claiming,“If they raised the price of a package by approximately four times, it would be a whole new ballgame.”
What Happens If Usps Is Privatized?
Should Trump fulfill his longtime goal of privatizing USPS—which he floated in his first term but never followed through with—the biggest changes would likely be to mail delivery in rural areas, which would be the most affected by any cuts to service. USPS currently handles “last-mile delivery” for Amazon and other private shipping companies to carry packages to out-of-the-way houses that are more expensive to deliver to, on top of its mandates to provide service six days a week in all areas and operate rural services. Any privatization of USPS could result in people in rural areas facing higher costs for less frequent deliveries, according to experts cited by CNN. Postal worker unions have also warned employees’ jobs could be less stable in a privatized USPS, noting it would likely end the unions’ existing contracts with the agency and retirement benefits, along with other job protections. Proponents of privatization have suggested it could help USPS’ long-running financial issues, as it would mean the agency would now be able to accept private capital funds and raise prices, rather than remain reliant on government loans. It could allow the Postal Service to innovate more and implement better technology than when it’s subject to a lower budget and governmental scrutiny, proponents have argued.
Who Will Replace Louis Dejoy?
DeJoy’s letter about DOGE’s involvement at USPS comes as the postmaster general is preparing to depart the agency, telling USPS’ board of governors in February he planned to step down. DeJoy garnered widespread controversy from the left during his first term, as he instituted cuts that sparked mail delays and led Democrats to accuse him of intentionally trying to stymie mail-in voting in the 2020 election to benefit Trump. The Post reports Trump and Republicans have soured on DeJoy more recently, however, because of his willingness to work with the Biden administration on things like sending out COVID-19 tests to Americans and efforts to facilitate mail-in voting, which Trump has long opposed. No replacement has yet been named for DeJoy, and Trump will not appoint his successor, as it’s instead up to the board of governors to appoint and confirm the postmaster general. The Post reported Trump’s transition team was vetting potential successors to DeJoy, however, believing Trump could appoint enough loyalists to fill vacancies on USPS’ board to get his chosen postmaster general confirmed. Those in contention for the role as of January reportedly include Postal Regulatory Commission vice chair Robert Taub, former USPS exec Thomas Day and Jim Cochrane, head of the Package Shippers Association trade group that represents private shipping companies like Amazon and FedEx.
Key Background
While it falls under the scope of the federal government, USPS is largely not funded by taxpayers and has to generate its own revenue, and the agency has long faced financial issues as a result. DeJoy came to USPS in 2020 from the private sector, vowing to shake up the agency and impose cost-cutting measures that would ease its financial woes. That led to the changes that ultimately sparked mail delays before the 2020 election—which courts ordered him to reverse—and DeJoy imposing a 10-year plan that critics have argued results in less reliable and less frequent service. Musk and DOGE’s involvement with USPS comes as the billionaire and his associates have made their way through the federal government, imposing widespread cuts and mass firings of workers, dismantling agencies like the U.S. Agency for International Development and threatening cuts at the Social Security Administration, Internal Revenue Service and more.
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