USPS Reports $9.5B Loss; DeJoy's Reform Plans Face Scrutiny
The Senate Homeland Security and Governmental Affairs Committee recently reviewed President Biden's nominees for the USPS board. Meanwhile, the Postal Service reported a $9.5 billion loss in fiscal 2024, with a projected $6.9 billion overall loss and a $1.1 billion controllable loss for fiscal 2025. Postmaster General Louis DeJoy's operational and financial reform plans have sparked debate.
The Postal Service's controllable losses decreased from $2.3 billion in fiscal 2023 to $1.8 billion in fiscal 2024. However, mail volume continued to decline, with a nearly 4% drop in First-Class mail. Despite this, the USPS turned a profit in the controllable part of its ledger in fiscal 2021 and only lost $500 million in fiscal 2022.
DeJoy's plans to slow down delivery for some mail to save $3.6 billion annually have faced bipartisan opposition and pushback from the Postal Regulatory Commission. The USPS aims to reduce work hours by 1% and transportation costs by 7% in fiscal 2025.
The USPS attributed its losses to retiree costs, inflation adjustments to workers' compensation, and decreasing mail volume. As the Senate committee reviews nominees, the future of the Postal Service's operational and financial reforms remains uncertain.
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