Watchdog Urges Reform After Lackluster USPS First Quarter Figures

For Immediate Release

Contact: Kara Zupkus (224) 456-0257

WASHINGTON, D.C. – Today, the Taxpayers Protection Alliance (TPA) urged the U.S. Postal Service (USPS) to embrace reform after the agency reported a modest $144 million net gain in income for the first quarter of fiscal year (FY) 2025. These figures mark an improvement from the same quarter last year when the USPS lost $2.1 billion. However, this improvement is miniscule compared to the agency’s significant losses over time. In total, the USPS has lost more than $100 billion over the past fifteen years and expects to lose an additional $60-70 billion by 2030. These dire figures persist despite the agency repeatedly hiking first-class stamp prices (most recently to 73 cents from 68 cents) and announcing plans to hike stamp prices five times through 2027.  The USPS has claimed that it can achieve significant savings through Postmaster General Louis DeJoy’s “Delivering for America” plan, but the Postal Regulatory Commission (PRC) recently claimed there is “little convincing evidence” this plan will succeed.

In response, Taxpayers Protection Alliance President David Williams provided the following comment:

“The USPS needs new leadership and a new approach. The first quarter, which covers the holiday season and millions of additional letter and package deliveries, should be a significant boon for agency finances. It is a sad state of affairs when the USPS’ first quarter net gain is a small fraction of preceding quarters’ multi-billion dollar net losses. Unless things turn around quickly, taxpayers will be on the hook for yet another bailout. Clearly, the ‘Delivering for America’ plan is not working. The PRC has found that the agency’s numbers don’t add up, and consumers can see firsthand the dismal reality of rising prices and slow deliveries. The USPS cannot afford to lose any more time.”

“The USPS’ recently released Annual Compliance Report shows the many ways that the agency is falling short. Competitive Products such as packages contributed $10.1 billion or 23.4 percent to institutional costs in FY 2024, a decrease from FY 2023 totals of $12.2 billion and 32.1 percent, even though packages are the driving force for pricey postal purchases such as trucks. The agency has inexplicably decided to make its pilot Connect Local Mail Product permanent, even though the USPS reported less than $13,000 in revenue for the service compared to more than $27,000 in costs. Instead of turning a corner, the USPS is doubling down on its fiscal follies and failures.”

Williams concluded: “The USPS can reverse this slide by embracing a less costly hiring process, appropriately pricing parcels, and nixing costly ‘investments’ such as electric trucks. Unless the agency further increases its small net income figures, taxpayers and consumers will continue to lose trust in America’s mail carrier.”

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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.