Watchdog Calls for Real Postal Reform After $639 Million Quarterly Loss

For Immediate Release               Contact: Abigail Graham (202) 417-7235

May 6, 2022

Washington, D.C. – Today, the Taxpayers Protection Alliance slammed the U.S. Postal Service (USPS) after the agency reported a $639 million net loss for the second quarter of fiscal year (FY) 2022. This figure increased significantly from the same quarter last year, when the USPS reported a $82 million net loss. The federal agency continues to suffer significant net losses despite a heavily criticized plan by Postmaster General Louis DeJoy to save money by altering delivery standards and slowing down the delivery of first-class mail.

TPA President David Williams criticized continued postal losses, noting, “the USPS continues to lose money despite the release of a business plan assuring taxpayers and consumers that the agency would get back into the black. While the USPS has reported that prices for bulk, discounted package delivery services (Parcel Select) have increased by 5.5 percent for 2022, the USPS is likely still losing money on these deliveries due to the surging price of gasoline and the flawed cost allocation method used by the agency. Inflation-adjusted package delivery prices have actually decreased, but that hasn’t stopped package volumes from declining. Package volume is down by 94 million compared to the same quarter last year. Clearly, the agency’s quest to keep package volumes high by subsidizing deliveries isn’t working.”

Williams continued: “Unfortunately, large net losses have been the norm in recent years for America’s mail carrier. The USPS has lost more than $90 billion over the past fifteen years and there’s little indication things will change anytime soon. The agency predicts that the impact of ‘reform’ legislation will not be felt until next quarter, but even then, it’s unlikely ethere will be any real change. Congress forgiving the USPS’ debt will just kick the can down the road and give the agency a blank check to continue to spend recklessly and neglect much-needed pricing reforms. Congress can and must work with postal leadership to enact real reforms that will be reflected in postal balance sheets.”

Williams concluded: “The USPS cannot continue to sit by as losses continue to mount and taxpayers are at risk of further bailouts. It’s time to deliver on much-needed changes that will get the agency on firmer fiscal ground.”

###

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.