Wrap Up: Key Stakeholders Call for Critical Upgrades in USPS Operations to Improve Overall Service 

WASHINGTON—The Subcommittee on Government Operations yesterday held a hearing titled “The Route Forward for the U.S. Postal Service: A View from Stakeholders.” The American people rely on the U.S. Postal Service (USPS) for critical services and members emphasized that former Postmaster General Louis DeJoy deserves credit for implementing a long-term strategy to improve USPS operations. However, members agreed with key stakeholders testifying before the Subcommittee that many Americans across the country continue to endure poor service, and USPS is still losing too much money annually. Republicans and Democrats concluded that incoming USPS leadership must prioritize achieving financial self-sufficiency for Postal Service operations while simultaneously improving overall service for Americans.

Key Takeaways:

For nearly 250 years, the United States Postal Service has been a vital institution, providing essential mail and services that American businesses and households depend on.

Ms. Elena Patel, Assistant Professor, Marriner Eccles Institute for Economics and Quantitative Analysis at the University of Utah, testified: “The Postal Service has been a cornerstone of public service since the earliest days of our nation. Its core mission is to provide reliable, affordable, and universal service, ensuring that every American can participate in the essential networks of communication that bind our nation together.”

Key stakeholders emphasized that the USPS’s financial condition remains poor and urged Congress to pursue cost-effective strategies, including public-private partnerships, to achieve financial self-sufficiency and enhance USPS service quality.

Mr. Thomas A. Schatz, President, Citizens Against Government Waste, testified: “The Government Accountability Office has had the USPS on its High-Risk List since 2009 and has called its business model “unsustainable.”7 It has lost money in every quarter since 2009, is running out of cash, and has failed to deliver adequate service across the country.”

Mr. Paul Steidler, Senior Fellow, Lexington Institute, testified: “USPS will likely run out of cash sometime before the 2028 Presidential election. USPS assured Congress, through its 2021 Delivering for America strategic plan, that if it passed the Postal Service Reform Act and other modest steps were taken, it would be breakeven in Fiscal Year 2023 and breakeven for the 10-year fiscal period 2021-30. That has never come close to happening… Former Postmaster General Louis DeJoy had a well-intentioned, bold, and expensive plan that envisioned USPS building out extensive infrastructure. It has not worked and should be halted and abandoned.”

Mr. Jim Cochrane, Chief Executive Officer, Package Shippers Association, testified: “To truly revitalize the Postal Service and ensure its long-term viability, we must acknowledge thelimitations of a purely governmental approach. A critical component of any new strategy must include embracing of strategic public-private partnerships, particularly in areas where the private sector excels.”

The House Oversight Committee will continue to work in a bipartisan manner with USPS leadership and outside stakeholders to ensure USPS is successful and operates like a 21st century business that provides reliable service.

Mr. Michael Plunkett, President and Chief Executive Officer, Association for Postal Commerce, testified: “The Postal Service and mail can and should have a long and prosperous future. For that to happen, Congress, the Executive Branch and postal stakeholders need to work together. I congratulate the House Oversight Committee for recognizing the need to begin an essential dialogue and commit the resources of our associations and its members to support the Committee’s efforts to improve our nation’s postal system.”

Member Highlights:

Subcommittee on Government Operations Chairman Pete Sessions (R-Texas) discussed adjustments that could be made to USPS staffing levels to improve mail operations.

Rep. Sessions: “Are any of you aware of staffing levels in the country? I am talking about over-staffing. Do we have any information on staff that are not busy or productive at post offices that maybe should move in a different direction to improve service?”

Mr. Steidler: “The Postal Service at the end of 2024 had 533,724 employees. That is 9% more than it had in 2014. This comes at a time when mail has declined in volume by about 1/3. A key metric for labor productivity that the Postal Service provides are the total factor of productivity and labor productivity. Those have both dramatically declined in the past three years. In fact, the postal Regulatory Commission said that the decline in total factor of productivity in 2023 was the biggest since 1965. So you have more people delivering less things than you did 10 years ago, and you have labor productivity and total factor of productivity that has sharply declined. Those are big drops and the source on that is the Postal Service itself.”

Rep. Sessions: “Those are called facts of the case.”

House Committee on Oversight and Government Reform Chairman James Comer (R-Ky.) underscored the importance of USPS achieving financial self-sufficiency and operating effectively without relying on taxpayer funds.

Rep. Comer: “Everyone knows this Committee is dedicated to saving the Postal Service. We recognize there are problems. Performance is a problem, but so is the massive financial losses. USPS is going to have to be more efficient. I mean they’re losing customers every day. I’m not blaming the postal employees, I’m not blaming the postmaster general, but at the end of the day it’s broken, and we have to fix it. Congress is not going to continue to funnel money to USPS and this is one of the very few bipartisan issues in Congress. We also need to get some more direction from the White House as to what their plans are for the future of the of the Postal Service but I think one thing for certain is I want to see a postal service in the future.”

Representative Virgina Foxx (R-N.C.) highlighted the opportunity of public-private partnerships with USPS to ensure the long-term efficient and effective delivery of mail.

Rep. Foxx: “USPS’s package business not only covers its cost but helps subsidize the rest of the postal service’s operation. These public private partnerships with USPS helped grow the package business. Do you believe the private sector could do more to process mail and packages with the Postal Service and thereby increase the efficiency and reduce the cost of the overall postal system? Do you think we can maximize the opportunity for private carriers to hand over their packages through the postal service close to the destination for the final mile delivery to homes and businesses?” 

Mr. Cochrane: “That is the best solution that’s in the marketplace and we absolutely should be doing more of that.”

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WATCH: Sessions Opens Hearing on the Route Forward for the U.S. Postal Service