THE USPS Postmaster General issued a stark warning for the future of the agency just weeks before he resigned.
Louis DeJoy suddenly stepped down from the role after almost five years at the helm, plunging the organization into uncertainty.
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A temporary successor has been named, but no timetable has been mapped out for his replacement.
It’s thought that DeJoy resigned before he was fired by Donald Trump, according to the Wall Street Journal.
Trump has promised radical reform at the US Postal Service and DeJoy warned about the future of the organization in a letter to Congress earlier this month, per Fox Business.
In a scathing assessment, he claimed the organization had a “broken” business model.
“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,” he admitted.
“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.”
In a statement announcing his resignation, DeJoy warned about the work facing the USPS.
“It has been one of the pleasures of my life and a crowning achievement of my career to have been associated with this cherished institution,” he said.
Doug Tulino is now the interim Postmaster General, but a permanent successor hasn’t been named.
DeJoy’s sudden resignation came just weeks after he allowed officials at the Department of Government Efficiency to identify areas where savings could be made.
Around 10,000 jobs could be cut as a result.
DeJoy had alluded to challenges linked to regulations he described as “burdensome” and the cost of congressional mandates.
And, his resignation comes almost four years after he unveiled his 10-year plan for the USPS.
He warned at the time the agency could run out of money.
Four changes needed at USPS
THE head of the US Postal Service issued an urgent warning about changes needed at the agency. Postmaster General Louis DeJoy laid out four big challenges in a letter to Congress in March:
- Retail Leases: DeJoy asked for help reviewing nearly 31,000 retail centers and the challenges of renewing leases due to ownership consolidation, urban development, and rising rental rates as long-term leases expire.
- Counterfeit Postage Crackdown: DeJoy highlighted USPS is combating an estimated $1 billion issue with counterfeit postage and called for “additional innovative solutions” to tackle the problem.
- Federal Law: DeJoy stated unfunded congressional mandates imposed by legislation are costing USPS between $6 billion and $11 billion annually.
- Regulations: DeJoy criticized “burdensome regulatory requirements” that limit USPS’s ability to operate normally, estimating that the Postal Regulatory Commission has caused over $50 billion in damage with defective pricing models.
Source: AXIOS
DeJoy also promised six to seven days of mail delivery, and wanted a high standard of service – with 95% on time reliability.
He vowed to reduce non-career workforce turnover by 50%.
And, DeJoy also wanted the USPS to provide best in class mail and package delivery.
But, DeJoy’s supporters are now fearing the organization could be taken over by the White House, per Time.
Elon Musk has touted the idea of privatizating the organization.
Trump cannot privatize the USPS single-handedly, he needs an Act of Congress.
And, even murmurings that the USPS could be privatized has sparked fury among lawmakers.
“The U.S. Postal Service was created in the Constitution,” Illinois senator Dick Durbin said.
“Most people don’t know that, but they do know that they can count on the postal service every day, six days a week.
“Now there are those in Washington, Elon Musk and others, who want to privatize the postal service.
“I am opposed to that. Let’s keep it an independent agency above politics.”
