The United States Postal Service (USPS) is seeking assistance from the Department of Government Efficiency (DOGE) to implement cost-saving measures and long-term reforms, according to a letter sent by Postmaster General Louis DeJoy to Congress on Monday, Axios reports.
DeJoy outlined his plan to reduce the USPS workforce by 10,000 employees and cut billions from the agency’s budget. These efforts align with President Donald Trump’s broader vision of restructuring government agencies to operate more efficiently and reduce unnecessary spending.
The letter emphasized that previous legislative restrictions have hindered USPS’s ability to modernize under DeJoy’s Delivering for America plan. To address this, DeJoy signed an agreement with DOGE last week, marking a step toward meaningful reform.
President Trump has advocated for a restructuring of the Postal Service, even suggesting a potential Commerce Department “merger” to prevent continued financial losses. His administration has prioritized fiscal responsibility and operational efficiency across government agencies, and USPS is no exception.
“The fact is that DOGE is the only other game in town that seems oriented toward helping us achieve our efficiency and cost goals,” DeJoy wrote.
DeJoy’s letter to DOGE highlighted several areas where reforms could lead to substantial savings:
- Retail Leases: USPS operates nearly 31,000 retail centers, and renewing these leases is becoming increasingly difficult due to rising rental rates, urban development, and ownership consolidation. DeJoy has requested DOGE’s help in assessing these challenges.
- Counterfeit Postage: USPS faces an estimated $1 billion loss annually due to counterfeit postage. DeJoy has called for new, innovative solutions to combat fraud.
- Federal Mandates: Unfunded congressional mandates cost USPS between $6 billion and $11 billion annually. DeJoy has urged DOGE to review these legislative burdens.
- Regulatory Overreach: DeJoy cited costly regulations from the Postal Regulatory Commission, which he estimates have caused over $50 billion in financial harm by enforcing restrictive pricing models.
Despite DeJoy’s push for change, opposition remains. Kevin Yoder, executive director of the advocacy group Keep US Posted and a former Republican congressman, criticized DeJoy’s leadership and called for his removal. Meanwhile, Democratic lawmakers on the House Committee on Oversight and Government Reform have requested a hearing to scrutinize DOGE’s involvement with USPS.
As part of the USPS’s financial strategy, DeJoy announced plans last September to increase stamp prices five times through 2027. Some mail products could see rate hikes as high as 11.6% as early as July. Critics argue these increases could place additional burdens on American consumers, but DeJoy maintains they are necessary to sustain USPS operations.
