USPS and DOGE Agreement to Cut Jobs Sparks Controversy

The U.S. Postal Service has signed an agreement with Elon Musk’s Department of Government Efficiency to cut 10,000 jobs, stirring debate among lawmakers and union leaders.

In a move aimed at addressing the financial struggles of the U.S. Postal Service, Postmaster General Louis DeJoy announced an agreement with the General Services Administration and Elon Musk’s Department of Government Efficiency (DOGE). The agreement, which aims to cut 10,000 jobs and billions from the USPS budget, has sparked a heated debate on Capitol Hill and among union leaders.

During a House Ways and Means Committee markup, Rep. John Larson, D-Conn., criticized the decision, expressing concerns over the involvement of Elon Musk and DOGE in the restructuring of the USPS. DeJoy defended the move in a letter to Congress, highlighting the dire financial situation of the Postal Service, which has faced nearly $100 billion in losses and was projected to lose another $200 billion.

The agreement with DOGE is expected to help the USPS identify and achieve further efficiencies in its operations. DeJoy pointed out issues such as mismanagement of retirement assets and the Workers’ Compensation Program, as well as regulatory constraints that have hindered normal business practices.

Critics, including Democratic U.S. Rep. Gerald Connolly of Virginia, fear that the involvement of DOGE and Musk could lead to the privatization of the Postal Service, potentially undermining its universal service obligation. Connolly warned of the catastrophic consequences such a move could have, especially for rural and hard-to-reach areas that rely heavily on postal services.

The National Association of Letter Carriers also expressed concerns about privatization, emphasizing the need for common-sense solutions to address the agency’s challenges without threatening the jobs of its 640,000 employees and the 7.9 million jobs tied to its operations.

The USPS plans to implement the job cuts through a voluntary early-retirement program over the next 30 days. This is not the first time the agency has taken such measures; in 2021, it cut 30,000 jobs in an effort to reduce its operating costs.

As the Postal Service continues to grapple with the decline of first-class mail and financial sustainability, the agreement with DOGE represents a significant step in its ongoing efforts to reform and adapt to changing economic conditions.