USPS Announces Partnership With DOGE

US Postal Service teams up with Elon Musk’s DOGE to eliminate 10,000 jobs and slash billions from budget as Postmaster General Louis DeJoy declares the agency has a “broken business model.”

Key Takeaways

Postmaster General Louis DeJoy has agreed to cut 10,000 postal workers through voluntary early retirement within 30 days.
USPS has accumulated nearly $100 billion in losses and projects future losses of $200 billion without major reform.
The partnership with Musk’s Department of Government Efficiency (DOGE) aims to address mismanagement and regulatory constraints.
Critics, including Democratic lawmakers and postal unions, fear this collaboration could lead to privatization of the $78 billion agency.
This initiative follows previous USPS efforts to reduce operating costs by $3.5 billion annually with 30,000 workforce reductions.

USPS Signs Reform Agreement with DOGE Team

In a major development for postal operations, US Postmaster General Louis DeJoy has formalized an agreement with Elon Musk’s Department of Government Efficiency (DOGE) to address deep-rooted financial challenges at the US Postal Service. The partnership will eliminate 10,000 postal positions and reduce the agency’s budget by billions. DeJoy informed congressional members on Thursday about the agreement with DOGE and the General Services Administration, highlighting the urgent need to resolve the agency’s fiscal crisis.

DeJoy’s assessment of the Postal Service’s financial condition was stark, describing it as having a “broken business model” with accumulated losses approaching $100 billion. Without significant intervention, the agency projects additional losses exceeding $200 billion. The DOGE team, established to identify government inefficiencies, will assist in addressing critical issues including retirement asset mismanagement, Workers’ Compensation Program problems, and regulatory burdens hampering standard business operations.

Implementation Plan and Workforce Reductions

The USPS plans to implement workforce reduction through a voluntary early retirement program within the next 30 days. This follows previous initiatives announced in 2021 to cut operating costs by more than $3.5 billion annually and reduce staffing by 30,000 positions. The current agreement with DOGE represents an acceleration of these reform efforts for the $78 billion-a-year agency, which employs approximately 635,000 workers across the nation.

DeJoy, who was appointed during President Trump’s first term and has remained in his position under the Biden administration, characterized the partnership as complementary to existing reform efforts. “This is an effort aligned with our efforts, as while we have accomplished a great deal, there is much more to be done,” DeJoy stated. The Postal Service has struggled to maintain financial equilibrium amid declining first-class mail volumes, its primary revenue source.

Concerns About Privatization

The agreement has sparked significant opposition from Democratic lawmakers and postal worker unions who fear potential privatization. Representative Gerald Connolly (D-VA) expressed alarm about the collaboration, suggesting it could fundamentally alter the Postal Service’s public service mission. Labor organizations have similarly voiced concerns about job security and service reliability for rural communities that depend heavily on consistent mail delivery.

The National Association of Letter Carriers has taken a firm stance against privatization attempts, emphasizing that the livelihoods of 640,000 postal employees and nearly 8 million jobs connected to postal operations could be at risk. Brian L. Renfroe, the association’s president, advocated for “common-sense solutions” rather than privatization initiatives that might compromise universal service. President Trump had previously suggested placing the Postal Service under Commerce Department jurisdiction, indicating potential executive branch control.

As the USPS confronts these structural reforms, the partnership with Musk’s efficiency team represents a significant shift in approach to addressing the agency’s long-term sustainability challenges. Americans who rely on daily postal services will be watching closely to see how these changes affect mail delivery and service quality across communities nationwide.