USPS Teams Up With Elon Musk’s DOGE Initiative to Tackle Reform Challenges

WASHINGTON, March 13 - U.S. Postmaster General Louis DeJoy informed Congress about signing a pact with Elon Musk’s DOGE initiative aimed at offering support to the financially struggling organization as it tackles significant challenges.

The U.S. Postal Service (USPS), which employs 635,000 people and reported a loss of $9.5 billion last year, is not subject to the federal employee cuts mandated by DOGE. In a letter reviewed by Reuters, DeJoy informed Congress that USPS intends to decrease its staff by 10,000 workers over the coming month via a voluntary early retirement initiative initially introduced in January. Since 2021, the postal service has reduced its workforce by 30,000 positions.

DeJoy mentioned that the pact between DOGE and the General Services Administration will enable the government reform team to “help us identify and achieve additional efficiencies….” He also noted that the DOGE team kindly requested tackling significant issues they could assist with.

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DOGE is collaborating with various governmental bodies to terminate contracts and reduce agency sizes.

More: Donald Trump mentions he might consider taking over the management of the US Postal Service.

DeJoy pointed out several problems such as mismanagement of retirement funds and worker's compensation schemes handled by various governmental bodies, unpaid directives from the government, and stringent regulatory stipulations.

Over the past five years, DeJoy has spearheaded a significant initiative to revamp the postal service, reducing projected deficits from $160 billion to $80 billion within ten years through methods akin to those employed by the DOGE team. This includes downsizing the employee base and terminating or revising agreements.

More: National wildlife refuges in Florida affected by Trump, DOGE layoffs

He stated that the Postal Regulatory Commission is an unwarranted entity responsible for causing more than $50 billion worth of harm to the Postal Service through flawed pricing strategies and outdated administrative procedures.

The Postal Regulatory Commission deemed DeJoy's statement inaccurate, asserting that USPS squandered approximately $100 billion in financial aid provided by both Congress and the commission. This mismanagement has led to increased losses and decreased efficiency within the postal system, particularly affecting services for rural American communities.

Representative Gerald Connolly, top Democrat on the committee overseeing USPS, said DeJoy was allowing DOGE to "infiltrate" the agency, suggesting DOGE would "undermine it, privatize it, and then profit off Americans’ loss."

The GSA and DOGE did not provide any comments.

A few weeks ago, two news organizations reported that President Donald Trump planned to sign an executive order aimed at dismissing the members of the Postal Service Board of Governors. However, the White House refuted these claims. Despite this denial, Trump mentioned his consideration for consolidating the Postal Service with the U.S. Commerce Department. This potential merger drew criticism from Democrats who argued it could contravene current laws.

More: What became of the DOGE stimulus checks? Where did this concept come from and what is the current status?

Musk, a wealthy advisor to President Trump, stated earlier this week that he believed the USPS should be privatized.

Secretary of Commerce Howard Lutnick mentioned that the Postal Service might assist in reducing his department’s expenses by deploying staff for conducting the U.S. Census and managing duties currently handled by approximately 20,000 Social Security personnel.

The Postal Service is implementing updated service standards aimed at saving the organization a minimum of $36 billion over a decade.

Since 2007, the Postal Service has experienced losses exceeding $100 billion. However, last month, it announced a quarterly profit of $144 million for the fourth quarter.

With the rise of electronic communication, the organization has suffered an 80% decrease in first-class mail volume since 1997. Mail volumes have dropped to their lowest point since 1968.

Last month, DeJoy stated his intention to step down after roughly five years in the position.

(Reported by David Shepardson; Edited by Diane Craft and Kate Mayberry)

The article initially appeared on USA TODAY: "Major issues": USPS reaches agreement with Elon Musk's DOGE team for assistance in reforms