Watchdog Slams Postal Service After $4.4 Billion Net Loss

For Immediate Release

November 10, 2022

Contact: Abigail Graham: (202) 417-7235

Washington, D.C. – Today, the Taxpayers Protection Alliance called for serious postal reform after the U.S. Postal Service (USPS) posted yet another multi-billion-dollar net loss. America’s mail carrier has lost more than $100 billion over the past fifteen years and continues to shed resources despite an initiative to slow down mail services. According to Postmaster General Louis DeJoy, additional losses through 2030 may climb to $70 billion, wiping out the agency’s $20 billion cash balance. While President Biden signed “reform” legislation into law in April 2022, the changes have thus far failed to improve efficiency or reduce expenses at the beleaguered agency.

TPA President David Williams criticized postal leadership and Congress, noting, “the USPS needs to reverse course to avoid an endless string of taxpayer bailouts. Unfortunately, the agency and lawmakers appear unwilling and unable to do what is needed to bring the USPS back into the black. Policymakers have resigned themselves to slowing down the mail and shifting around retirement liabilities instead of improving workforce efficiency or properly pricing parcels. The USPS needn’t choose between an affordable and reliable mail service and fiscal solvency. It’s time to consolidate the over-extended postal network in a way that doesn’t shortchange consumers or taxpayers.”

Williams continued: “For the past year, inflation has spiraled out of control as policymakers have passed the buck instead of holding themselves accountable. These price hikes have hit the USPS, and now, stamp prices are set to increase a further 5 percent to 63 cents in January. Consumers are being asked to shoulder more of the financial burden while getting a deteriorating service through slowdowns and poorly-thought-out post office closures. The new Congress should work with postal leadership to reverse course and keep prices under control.”

Williams concluded: “The USPS can and must focus on reducing costs and providing a better experience for consumers. The agency can deliver again for the American people, but not without controlling spending and ensuring that prices cover costs. Newly-elected lawmakers need to work with Postmaster General DeJoy to create a stronger, more resilient Postal Service.”

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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.