U.S. Postmaster General Louis DeJoy has signed an agreement with the General Services Administration and Elon Musk’s Department of Government Efficiency to right-size the Postal Service budget.
The Postal Service moved in January to cut 10,000 jobs cuts through an early retirement offer to eligible workers.
In a letter to Congress, DeJoy lamented that the Postal Service has a “broken business model that was not financially sustainable without critically necessary and core change.”
“Fixing a broken organization that had experienced close to $100 billion in losses and was projected to lose another $200 billion, without a bankruptcy proceeding, is a daunting task,” DeJoy wrote. “Fixing a heavily legislated and overly regulated organization as massive, important, cherished, misunderstood and debated as the United States Postal Service, with such a broken business model, is even more difficult.”
DOGE will assist USPS with addressing “big problems” at the $78 billion-a-year agency, which has sometimes struggled in recent years to stay afloat. The agreement aims to help the Postal Service identify and achieve “further efficiencies.”
USPS listed such issues as mismanagement of the agency’s retirement assets and Workers’ Compensation Program, as well as an array of regulatory requirements that the letter described as “restricting normal business practice.”
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Critics of the agreement fear negative effects of the cuts will be felt across America. Democratic U.S. Rep. Gerald Connolly, of Virginia, who was sent the letter, said turning over the Postal Service to DOGE would result in it being undermined and privatized.
“The only thing worse for the Postal Service than DeJoy’s ‘Delivering for America’ plan is turning the service over to Elon Musk and DOGE so they can undermine it, privatize it, and then profit off Americans’ loss,” Connolly said in a statement.
He added: “This capitulation will have catastrophic consequences for all Americans – especially 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.”
