Watchdog Calls for Immediate USPS Reform After $3 Billion Net Loss

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

August 6, 2021                      

WASHINGTON, D.C. – Today, the Taxpayers Protection Alliance (TPA) called for systematic changes to the U.S. Postal Service (USPS) after the agency reported a staggering $3 billion net loss for the third quarter of fiscal year (FY) 2021. This figure marks a sharp uptick in losses from the same quarter last year when the USPS incurred a $2.2 billion loss. Losses have continued to escalate despite a reduction in the number of postal workers being quarantined as a result of the COVID-19 pandemic. In total, the USPS has lost more than $80 billion since 2007. 

TPA President David Williams criticized continued USPS mismanagement, stating, “It is inexcusable that the USPS is losing even more money than they were at the same time last year, despite resumed economic growth and progress in fighting the pandemic. These deeply disappointing figures demonstrate a basic inability by America’s mail carrier to keep costs under control and adequately price their services to reflect delivery costs. Even excluding liabilities outside of USPS’ control, expenses have increased by nearly 2 percent from the same period last year. Meanwhile, transportation costs have surged more than 8 percent. Clearly, something must be done to get these skyrocketing expenses under control.”

Williams continued: “Postmaster General (PMG) DeJoy has acknowledged the need for wide-ranging cost reductions with the agency releasing a ten-year plan under his watch. 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. Slowing down first-class mail would send the disturbing message that the USPS is no longer committed to its primary goal of speedily delivering mail to all Americans. Instead of degrading service standards, the agency should commit to more routinely auditing 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 needs to clamp down on surging operating costs to get back into the black. Pursing misguided reforms such as service standard changes will only deepen the challenges facing the agency to the detriment of 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.