Watchdog Calls for USPS Reform After $4.9 Billion Loss

This week, Taxpayers Protection Alliance called for the U.S. Postal Service to reverse course after reporting a $4.9 billion loss for fiscal year 2021. A full statement can be found HERE and below.

For Immediate Release                           Contact: Courtney Mattison (202-525-7492)

November 10, 2021                     

WASHINGTON, D.C. – Today, the Taxpayers Protection Alliance (TPA) called on the U.S. Postal Service (USPS) to reverse course after the agency reported a staggering $4.9 billion loss for fiscal year (FY) 2021. According to the agency, the “adjusted” loss climbs to $6.9 billion after excluding “non-cash workers’ compensation adjustments for the impacts of actuarial revaluation and discount rate changes.” Large losses at the agency continue, despite the USPS’ push to implement its 10-year-plan which includes the slower delivery of first-class mail. The agency reported $2.4 billion in controllable losses, undercutting the notion that net losses are beyond the agency’s control. In total, the USPS has lost more than $90 billion over the past fifteen years.

TPA President David Williams slammed the agency for continued multi-billion-dollar losses, stating, “the USPS has an obligation to taxpayers and consumers to explain what has gone wrong in its business model and finally offer sensible reforms. The agency continues to hide an array of financial information that could shed light on its troubles, including package pricing assumptions, procurement data, and postage reselling figures. The USPS could have allowed independent analysts access to the agency’s full financials, but leadership instead chooses to hide behind excuses and redactions. Instead of a dedicated effort to embrace transparency and correct course on first-class postage sales, the USPS has bizarrely opted to enter the check-cashing industry. America’s mail carrier should end this costly distraction and release a coherent business plan that builds off of the agency’s strengths.”

Williams continued: “To counter the USPS’ surge of red ink, Postmaster General (PMG) DeJoy has released a ten-year-plan addressing service standards and network consolidation. While the reform plan contains commendable features such as a unified logistics platform, proposed service changes would diminish the reputation of the agency while barely putting a dent into costs. The agency projects that slowing down the mail will save about $170 million annually at a time of $4.9 billion annual losses. Slowing down first-class mail is also sending the disturbing message that the USPS is no longer committed to its primary goal of the speedy delivery of mail to all Americans. Instead of degrading service standards, the agency should commit to more routine auditing of its bloated middle-mile highway contracts. According to a 2019 TPA report, more sound oversight of these contracts could save taxpayers $1 billion per year.”

Williams concluded: “The USPS desperately needs to change course to increase revenue and cut down on costs. This will not be easy, but the consequences of continued stonewalling and half-measures will be dire. It’s time for the agency to start delivering for the American people.”

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Taxpayers Protection Alliance (TPA) is a non-profit, non-partisan organization dedicated to educating the public through the research, analysis and dissemination of information on the government’s effects on the economy.