Watchdog Calls for Immediate Postal Reform After $2.2 Billion Loss

For Immediate Release
August 7, 2020
Contact: Grace Morgan
(202-855-4380)

WASHINGTON, D.C. – Today, the Taxpayers Protection Alliance (TPA) slammed the U.S. Postal Service’s (USPS) latest loss of $2.2 billion for the third quarter of fiscal year (FY) 2020. Multi-billion-dollar losses continued despite a $10 billion loan from the U.S. Treasury and a nearly 50 percent increase in shipping and package volume in the third quarter. According to Postmaster General Louis DeJoy, “the reality remains that the Postal Service is in a financially unsustainable position absent significant fundamental change.”

TPA Vice President of Policy Ross Marchand criticized the latest financial performance, stating, “in the midst of the worst public health crisis in 100 years, some loss in mail business is understandable. But in recent years, the USPS has repeatedly emphasized the strength of its ‘competitive’ products line, including package shipping arrangements with large e-commerce companies. These lines of business are surging yet the beleaguered agency continues to face large and persistent net losses. Even in the quarter preceding the pandemic, the USPS lost an astounding $4.5 billion. Unless the agency embraces significant, wide-ranging reforms, taxpayers will be forced to foot the bill for a costly bailout.”

Marchand continued: “There’s less than three months to go until the 2020 presidential election and the American people need assurances that the USPS will continue to serve as a reliable mail carrier. But, continued operational issues, surging labor costs, and opaque pricing policies have cast considerable doubt on the USPS’ ability to deliver for Americans. Consumers and taxpayers have yet to see a 10-year business plan that was supposed to be finished last summer. The USPS must present a comprehensive blueprint for reform and explain how it plans to rein in contractor costs, improve workplace efficiencies and update its dysfunctional pricing policies. Absent significant changes, the agency will face serious obstacles in overseeing a large vote-by-mail operation.”

Marchand concluded: “Fortunately, new Postmaster General Louis DeJoy has begun to examine the significant issues facing the USPS and enact promising reforms. DeJoy’s focus on overtime expenses will cut down on labor costs while still ensuring timely deliveries for consumers. But far more needs to be done to avert large net losses and taxpayer bailouts. As DeJoy has stated, ‘we need to get moving to effect change immediately.’ Real reforms are needed to ensure that America’s mail carrier can continue to deliver for consumers.”

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