Postal service improves, but more work needed, say lawmakers.

USPS Making Progress on Delivering for America Plan, But Challenges Remain

The U.S. Postal Service (USPS) has made significant progress toward the goals of its Delivering for America 10-Year Strategic Plan, according to Postmaster General Louis DeJoy. However, during a recent hearing, the House Oversight Subcommittee on Government Operations and the Federal Workforce expressed concerns about the mail being delivered on time.

Challenges Facing USPS

DeJoy acknowledged that his agency is facing challenges, including increasing demands for mail delivery despite decreased revenue, inefficient and outdated facilities, and an unrealistic pricing structure. He also pointed out that most of the Postal Service’s fiscal issues came from regulatory and oversight groups with unrealistic expectations. DeJoy told the subcommittee that the Postal Regulatory Commission and past leadership had “presided over 15 years of deterioration.”

According to DeJoy, before implementing the Delivering for America plan, the Postal Service’s projected 10-year deficit was $160 billion. The plan has reduced that to $70 billion. “We have cut in half our projected financial losses. I want to be sure we have our eyes wide open on the magnitude of the problems we need to fix,” DeJoy said.

Factors Contributing to USPS Challenges

DeJoy explained that the Postal Service reported $60.6 billion in revenues for 2007. That dropped by 36 percent to $21.9 billion in 2020. At the same time, demand for first-class mail delivery, historically the Postal Service’s biggest revenue producer, dropped by almost half while delivery costs rose. In 2006, Congress passed the Postal Accountability and Enhancement Act, which required the Postal Service to pre-fund retiree health benefits. This and the Great Recession of 2008 placed greater financial stress on the agency. In addition, pandemic supply chain issues and a midterm election that required the delivery of mail-in ballots also threw more kinks into USPS operations.

Efforts to Address USPS Challenges

As part of the 10-year plan, the Postal Service is consolidating processing centers and looking for other ways to make its operation more efficient. Congress also changed the retirement benefits plans, providing relief to the Postal Service.

While committee members acknowledged the significant challenges facing DeJoy and his staff, they also said they are fielding complaints from constituents about late deliveries of prescription medicines, lost mail, theft, and poor customer service. These issues were especially prevalent in rural areas where it seemed USPS was cutting back its operations.

Conclusion

Despite the challenges, USPS is making progress toward its Delivering for America plan. However, there is still work to be done to ensure timely delivery and improve customer service.

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