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Wednesday, December 11, 2024

USPS faces scrutiny over financial losses and service inefficiencies

The House Committee on Oversight and Accountability convened to examine the current state of the U.S. Postal Service (USPS). The hearing, titled "Oversight of the U.S. Postal Service," addressed ongoing financial challenges and service issues affecting Americans nationwide. Despite efforts by Postmaster General Louis DeJoy to implement a long-term strategy for improvement, members from both parties highlighted that USPS continues to face significant financial losses and service inefficiencies.

Chairman James Comer (R-Ky.) acknowledged DeJoy's plan but pointed out that USPS is "hemorrhaging red ink" with a loss of nearly $10 billion this year and a projected $6.5 billion next year. He emphasized the need for cost-effective measures, noting that personnel costs are among the largest liabilities.

Comer also expressed concern over delivery inefficiencies: "Americans rely on the service for critical things like medicine... We need to see improvements." He reiterated his support for USPS but stressed that it must operate like a modern business.

Congresswoman Virginia Foxx (R-N.C.) questioned DeJoy about his "Delivering for America" plan, which aims to achieve financial stability. She noted the continued annual losses, with this year's deficit expected at $9.5 billion.

DeJoy responded by stating, "Our drive is to reduce cost and grow revenue... This is the best plan."

Rep. Glenn Grothman (R-Wis.) raised questions about USPS's investment in electric vehicles (EVs) and their cost-effectiveness. DeJoy confirmed plans to purchase 106,000 vehicles over five years, with 66,000 being electric.

Rep. Pete Sessions (R-Texas) discussed upcoming efforts by the Department of Government Efficiency (DOGE), emphasizing cost-effective operations: "We should focus on potential savings… The USPS needs to be ready."

Rep. Scott Perry (R-Pa.) highlighted concerns about labor costs, noting that USPS has added over 100,000 career employees while maintaining inadequate service levels.

In conclusion, while acknowledging some positive developments such as increased revenue and reduced work hours, committee members urged continued bipartisan efforts to ensure USPS's success in providing reliable services across America.

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