Hearing Wrap Up: USPS Must Achieve Financial Self-Sufficiency and Improve Service for All Americans

WASHINGTON—The House Committee on Oversight and Accountability today held a hearing titled, “Oversight of the U.S. Postal Service.” The American people rely on the U.S. Postal Service (USPS) for critical services and members emphasized that Postmaster General Louis DeJoy deserves credit for implementing a long-term strategy to improve USPS operations. However, members stressed that many Americans across the country continue to endure poor service, and USPS is still losing too much money annually. Republicans and Democrats urged Postmaster General DeJoy to remain focused on achieving financial self-sufficiency for the Postal Service’s operations while also improving overall service for Americans.

Key Takeaways:

The U.S. Postal Service’s financial condition remains poor. Postmaster General DeJoy must implement cost-effective measures to achieve financial self-sufficiency.

• Chairman James Comer (R-Ky.): “I give Mr. DeJoy credit for delivering a plan to fix the Postal Service. But the Postal Service is hemorrhaging red ink. This year’s loss was almost $10 billion. Next year’s loss is projected to be $6.5 billion. When you predicted the Postal Service could break even, did you not foresee some of these other issues? The Postal Service has added over 100,000 career employees, but your personnel costs and retirement expenses are your biggest liabilities. This isn’t going to work unless you look for ways to do more with fewer people.”

Despite improvements made by Postmaster General DeJoy, the U.S. Postal Service’s delivery operation is still largely inefficient and unreliable for the American people.  

• Chairman James Comer: “I remain an advocate for the Postal Service. Americans rely on the service for critical things like medicine. But nobody is more aware than I am of members expressing concerns and frustration about the Postal Service. The people of Western Kentucky for instance have not been immune to problems that seem to stem from efforts to change postal operations. The Postal Service was delivering bills after they were due. There are positive signs though, such as increased revenue and reduced work hours, but we are eager to hear where this is all going. We need to see improvements.”

The House Oversight Committee will continue to work in a bipartisan manner to ensure USPS is successful and operates like a 21st century business that provides reliable service to all Americans.

Member Highlights:

Chairman James Comer (R-Ky.) noted the success of the historic and bipartisan Postal Service Reform Act that passed and was signed into law in the 118^th Congress. However, he emphasized that Postmaster General DeJoy must continue improving USPS delivery services and cut losses.

Rep. Comer: “I can’t go to the bathroom without a Senator or Representative stopping me and giving me a Postal Service horror story. Are we going to improve service and cut losses? That should be the goal of the Postal Service. In our Postal Reform bill that passed in a bipartisan manner and became law, we provided funding and changed liability obligations the USPS had. We did what we could to help the service. However, the days of bailouts and handouts are over. The American people are tired of that.”      

Congresswoman Virginia Foxx (R-N.C.) highlighted the USPS’s poor financial condition and pushed Postmaster General DeJoy on his plan to decrease losses.

Rep. Foxx: “You stated a few years ago that your goal for the Postal Service was to break even by 2023. However, as we have heard the USPS continues to lose money each year and is on track to close this year with a $9.5 billion loss this year. Is your ‘Delivering for America’ plan for the USPS still up for the task to allow the Postal Service to break even?”

Mr. DeJoy: “Our drive is to reduce cost and grow revenue. We are introducing new products now to increase revenue… we will decrease our operating costs and increase our revenue. This is the best plan.”

Rep. Glenn Grothman (R-Wis.) pressed Postmaster General DeJoy on the Postal Service’s investment in electric vehicles (EV) and questioned the cost-effectiveness of EVs entering the USPS fleet.   

Rep. Grothman: “Are there any requirements with regard to electric vehicles for the post office?”

Mr. DeJoy: “We have a plan to deploy electric vehicles, we have a commitment to buy 106,000 vehicles over the next five years of which 66,000 will be electric.”

Rep. Grothman: “Do you have any statistics as far as the cost of gas versus electric for the fleet?”

Mr. DeJoy: “We are studying the charges now as we move forward, we have our routes that are setup for this type of service. There are some areas where we can’t use them.”

Rep. Pete Sessions (R-Texas) pointed out the upcoming efforts of the Trump Administration’s Department of Government Efficiency (DOGE) and emphasized that USPS must find a more cost-effective way to operate. 

Rep. Sessions: “I am a part of the upcoming Department of Government Efficiency effort. That is DOGE. There will be lots of conversation about USPS and other matters of government efficiency. I have found in the past, not to be critical, that the post office does not always prioritize saving money. We should focus on potential savings… The USPS needs to be ready and see these things coming publicly. We need to look at efficiency and hear your ideas, and you hear ours to save money.”

Mr. DeJoy: “I’m happy to engage in any discussion.”

Rep. Scott Perry (R-Pa.) emphasized the U.S. Postal Service has added over 100,000 career employees and Americans are still suffering from inadequate service.

Rep. Perry: “I believe you said 80% of your cost is labor, does that seem right?”

Mr. DeJoy: “It is 75-80%”

Rep. Perry: “This business model has lost revenue for over the past 40 years. Would you in a business that is losing money at that level, then transition your contract employees to full-time employees? That is additional benefits and cost…. You have more full-time employees with all the benefits and associated costs and that is my point here. What actual improvements has that made?”

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Comer Opens Hearing on Oversight of the U.S. Postal Service