The US Postal Service (USPS) has struck a deal with Elon Musk’s team to provide reform assistance amid the agency’s $100 billion loss since 2007. Postmaster General Louis DeJoy told Congress that the agreement will help identify and achieve further efficiencies, addressing “big problems” facing the agency.
DeJoy cited issues such as management of retirement assets and workers’ compensation programs by other government agencies, unfunded mandates, and burdensome regulatory requirements. The USPS has already cut 30,000 jobs since 2021 and plans to reduce its workforce by 10,000 workers through a voluntary early retirement program.
The deal comes after the General Services Administration worked with Musk’s team to cancel contracts and shrink agencies. DeJoy has led efforts to restructure the post office over the past five years, using similar tactics, including shrinking the workforce and canceling or renegotiating contracts.
However, some Democrats are skeptical about the agreement, suggesting that it could lead to the privatization of USPS and undermine its services for rural Americans. The Postal Regulatory Commission disputed DeJoy’s claims, arguing that USPS had wasted $100 billion in financial assistance from Congress and making the agency less efficient.
The deal is part of a broader effort by the General Services Administration to reform government agencies across the board. Musk’s team has been working with various departments to reduce waste and inefficiency, while some lawmakers have raised concerns about potential conflicts of interest.
Source: https://www.reuters.com/world/us/usps-signs-agreement-with-elon-musks-doge-team-assistance-2025-03-13