March Federal Bill of the Month: S. 913/H.R. 1982 – Return to Sender Act

Sponsors: Sen. Joni Ernst (R-Iowa); Reps. Michael Cloud (R-Tex.); Marjorie Taylor Greene (R-Ga.)

913/H.R. 1982 – Return to Sender Act

The Return to Sender Act rescinds the unobligated balances of amounts appropriated or otherwise made available by sections 70002 and 70003 of the Inflation Reduction Act (IRA). This includes $1.29 billion for the U.S. Postal Service (USPS) to purchase electric vehicles (EVs) and an additional $1.71 billion for the purchase, design, and installation of associated infrastructure (e.g., charging stations) at facilities owned or leased by the USPS. 

Given the exorbitant costs associated with EVs compared to conventional gas trucks, the significant delays associated with these vehicles’ deliveries, and the procurement-related contracting shortcuts taken by the USPS, rescission of these funds is long overdue. Congress is also wise to push for the USPS to become financially self-reliant, rather than depending on perpetual bailouts by taxpayers. In addition to the $3 billion in IRA funds, Congress also awarded $10 billion to the USPS in COVID-related subsidies and gave the agency an astounding $60 billion bailout of retirement-related liabilities.

It is for these reasons, among others, that TPA is pleased to make the Return to Sender Act its Bill of the Month for March 2025.

Background:

The USPS is eager to replace most of its aging fleet of more than 200,000 mail trucks, which have a disturbing tendency to catch on fire. In the latest iteration of a 2021 deal inked with supplier Oshkosh Corp., the agency will spend nearly $10 billion on a fleet of roughly 100,000 custom-built and commercial vehicles, including 66,000 EVs.

This agreement has abjectly failed taxpayers and consumers. EV deliveries are way behind schedule, and according to recently-retired Postmaster General DeJoy, taxpayers and consumers are paying anywhere from $10,000 to $20,000 more per EV than their gas-powered counterparts.

However, this is probably a significant underestimate. As discussed above, Congress appropriated $3 billion in taxpayer money to the USPS for the sole purpose of purchasing EVs, including $1.29 billion for the vehicles themselves and $1.71 billion for supporting infrastructure including charging stations. After taking into account this significant one-time sum of money and the USPS’ own “investment” dollars, total annual savings for switching to an all-gas fleet would likely approach $1 billion over the next ten years.

A key part of this savings strategy is rescinding the IRA funds, which the Return to Sender Act would accomplish. It remains to be seen, though, if the supplier will let the agency alter or walk away from the contract without a lengthy legal challenge. Fortunately, Oshkosh Corp. appears to be open to contract changes. Hopefully, a modified contract can be financed solely by the USPS and include a far more cost-effective gas-powered fleet.