A United States Postal Service (USPS) post office is located near Los Angeles International Airport (LAX) in Los Angeles, California, on February 5, 2025. (Photo by PATRICK T. FALLON/AFP via Getty Images)
OAN Staff James Meyers 9:12 AM – Friday, March 14, 2025
Postmaster General Louis DeJoy has informed Congress that he has signed a collaboration agreement with Elon Musk’s Department of Government Efficiency (DOGE), aiming for DOGE to assist the struggling agency in addressing “major issues.”
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The USPS, which operates as an independent government agency with 635,000 employees, reported a loss of $9.5 billion last year and has been exempt from the federal employee reductions directed by DOGE.
In his letter to Congress, DeJoy admitted that the Postal Service’s business model is “broken” and cannot be sustained financially without essential and core transformations.
BREAKING: Postmaster General Louis DeJoy informed Congress today that he signed an agreement to collaborate with DOGE to reduce jobs and spending.
The USPS plans to eliminate 10,000 positions within the next 30 days through a “voluntary early retirement” program. pic.twitter.com/YeJ5xDSdCO
“Repairing a malfunctioning organization that has accumulated nearly $100 billion in losses, with projections of an additional $200 billion in losses without entering bankruptcy, presents a daunting challenge,” DeJoy asserted. “Correcting the issues within a heavily legislated and overly regulated entity as significant and revered as the United States Postal Service, while contending with its broken business model, is an even greater challenge.”
The DOGE department is expected to aid the USPS in resolving “major issues” within the $78-billion-per-year agency, which has faced significant financial difficulty in recent years. This new agreement aims to support the Postal Service in identifying and achieving “greater efficiencies.”
The independent agency outlined several concerns, including the mismanagement of retirement assets and the Workers’ Compensation Program, as well as various regulatory constraints that have been described in the letter as “restricting normal business operations.”
“This initiative supports our ongoing efforts; while we have made substantial progress, there is still much to achieve,” DeJoy stated.
However, opponents worry that the agreement may lead to adverse consequences, and that the impact of the cuts will reverberate nationwide. Representative Gerald Connolly (D-Va.), who received the letter, warned that handing the Postal Service over to DOGE could lead to its degradation and privatization.
“The only thing worse for the Postal Service than DeJoy’s ‘Delivering for America’ plan is transferring control to Elon Musk and DOGE, resulting in its undermining, privatization, and profit at the expense of Americans,” Connolly stated.
He continued: “This concession will have disastrous effects for all Americans, particularly those in rural and hard-to-reach areas who depend on the Postal Service for delivering mail, medications, ballots, and more. Reliable mail service shouldn’t be limited to MAGA supporters or Tesla enthusiasts.”
In a statement, National Association of Letter Carriers President Brian L. Renfroe expressed openness to assistance in tackling the agency’s significant challenges but firmly opposed any moves towards privatization of the Postal Service.
“What the Postal Service needs are sensible solutions, not privatization attempts that threaten the jobs of 640,000 postal employees and the 7.9 million jobs dependent on our work, as well as the universal service relied upon daily by every American,” he emphasized.
The USPS currently employs about 640,000 individuals responsible for deliveries across urban and rural regions.
Meanwhile, the independent agency is set to reduce its workforce by 10,000 in the next month through a voluntary early-retirement initiative announced in January, as stated in the letter.
Previously, the agency announced plans to save at least $3.5 billion annually on operating expenses. In 2021, it laid off 30,000 employees.
As the agency continues to face financial hurdles stemming from declining first-class mail volume, it has resisted calls for privatization from President Donald Trump and others.
Last month, Trump suggested he might place the USPS under the Department of Commerce in a move that would signify an executive branch takeover.
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