Postmaster General Louis DeJoy announced Tuesday a ten-year plan for the United State Post Office (USPS) that includes post office hour cuts and longer mail delivery times to address a budget shortfall.
“It is our path to financial sustainability and service excellence,” DeJoy said during a Tuesday press conference, adding that he believes the federal agency can be financially solvent. Still, there is “growing concern” about its sustainability.
DeJoy said in his March 11 testimony before the House Financial Services Committee that the United States Postal Service (USPS) is facing $160 billion in debt over the next ten years.
He added that USPS lost $9.2 billion during 2020 amid the coronavirus pandemic and warned that if the financial problems with the postal service are not addressed, the agency would need a government bailout.
USPS hopes to break even in 2023 under the ten-year restructuring plan.
The plan’s goal is to erase the $160 billion debt by doing away with its prefunded retiree health benefits mandate and merging the requirement with Medicare.
At the same time, the plan will also include longer wait times for first-class mail delivery, higher postage prices, and a reduction in service hours due to reduced deliveries.
Chief Retail and Delivery Officer Kristin Seaver explained that only 70 percent of first-class mail would result in longer wait times, while the majority of other shipping options would result in on-time deliveries after the plan’s implementation.
Although DeJoy was appointed by the board of governors under President Donald Trump’s administration, President Joe Biden cannot fire DeJoy because postal operations are insulated from the presidency and Congress to prevent politicians from using the mail system for political purposes.
The postmaster general only answers to the board of governors, which are selected by the president in power.
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