US Postmaster General Louis DeJoy informed Congress that he has signed an agreement with the General Services Administration and Elon Musk’s Department of Government Efficiency (DOGE) to right-size the Postal Service budget. The plan aims to help the agency identify and achieve further efficiencies.
The Postal Service is facing significant challenges, including a “broken business model” that has led to close to $100 billion in losses. DeJoy acknowledged that fixing this issue will be difficult, but he believes DOGE can assist with addressing the agency’s “big problems.”
DOGE has agreed to help the USPS tackle issues such as mismanagement of retirement assets and regulatory requirements that restrict normal business practice. The agreement also aims to reduce operating costs by more than $3.5 billion annually.
Critics, including Democratic U.S. Rep. Gerald Connolly, are concerned that the reforms could lead to job losses and undermine the agency’s service to rural and hard-to-reach areas. National Association of Letter Carriers President Brian L. Renfroe has stated that the organization welcomes assistance in addressing the USPS’s biggest problems but strongly opposes privatization efforts.
The USPS currently employs about 640,000 workers, and plans to cut 10,000 employees through a voluntary early-retirement program announced in January. The agency has struggled to balance its books due to the decline of first-class mail, and has faced opposition from President Donald Trump and others who have called for privatization.
As part of this agreement, DOGE will work with the USPS to identify opportunities for cost savings and improve efficiency. However, critics remain skeptical about the potential impact on the agency’s operations and the services it provides to Americans.
Source: https://www.foxnews.com/politics/usps-signs-agreement-doge-agrees-cut-10000-workers-broken-business-model