Watchdog Group Calls for Postal Reform After $9.2 Billion Net Loss

For Immediate Release
November 13, 2020
Contact: Grace Morgan
(202-855-4380)

WASHINGTON, D.C. – Today, the Taxpayers Protection Alliance (TPA) criticized the U.S. Postal Service (USPS) for accruing a $9.2 billion net loss for fiscal year (FY) 2020. According to the agency, the net loss for FY 2020 represents, “an increase of $363 million compared to 2019. Controllable loss [losses within management’s control] was $3.8 billion, an increase of $334 million compared to the prior year.” While the USPS cited COVID-19 as having an unpredictable impact on mail volume and revenue, the agency notes, “package volume grew by nearly 1.2 billion pieces, or 18.8 percent, compared to last year due to the surge in e-commerce.”

TPA President David Williams criticized the USPS’ continued failure to stem losses, noting, “given the unprecedented problems caused by the coronavirus pandemic, this year was an especially difficult one for the agency. Mail volumes declined when businesses boarded up as the economy came to a stand-still.  Marketing mail took a particularly dire 15.2 percent plunge as a result of the temporary shutdown of the economy. Despite a surge in e-commerce activity driven by Americans taking their shopping online, the USPS was unable to make up for the declining mail volume. The USPS’ dysfunctional and outdated pricing system is preventing the agency from covering package costs and earning a reasonable return on these deliveries. And until the agency opens their books and shares their pricing assumptions with the public, financial analysts will be in the dark about the USPS’ abysmal finances.”

Williams continued: “Fortunately, new leadership at the USPS is pushing the agency to move away from its old, failed policies. Since assuming the office of Postmaster General (PMG) on June 15, Louis DeJoy has hit the ground running in reforming the USPS. The agency’s new leader consolidated the USPS’ overbuilt network of unnecessary machines and collection boxes and has tried to rein in out-of-control overtime costs. But it’s hard to reform a deeply troubled agency when lawmakers and pundits baselessly assert there’s a conspiracy to kneecap the USPS. Congressional pushback and court orders have slowed the momentum of PMG DeJoy’s reforms, but progress must continue to get the USPS back into the black.”

Williams concluded: “In managing its $160 billion debt, the USPS needs to turn itself around and fundamentally change the way it does business. The incoming Biden administration must work closely with PMG DeJoy to continue cutting costs and pursue full financial transparency.”

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