With DeJoy out, postal stakeholders push for pause in criticized Delivering for America overhaul plan

As a new leader takes the helm of the U.S. Postal Service, a House panel on Tuesday debated the future of the independent entity. While no member of Congress or expert witness offered a new comprehensive vision, there was near universal consensus on pausing and even reversing the recent reforms of former Postmaster General Louis DeJoy. 

DeJoy’s 10-year plan to promote the financial sustainability of USPS, dubbed Delivering for America, started in 2021 and aimed at slowing some delivery but generate savings. Specifically, it required mail to sit overnight at post offices instead of being collected each evening to be transported to a processing center and sought to consolidate processing plants into 60 regional distribution centers. 

Additionally, stamp prices have increased six times since the start of DeJoy’s tenure and that amount is set to rise again in July to 78 cents. These overhauls, however, did not generate revenue. USPS lost $9.5 billion in fiscal 2024 and experienced a net loss of $3.3 billion for the most recent quarter. 

“Under the Delivering for America plan, our members have suffered unprecedented rate increases and service degradation as the postal service records staggering losses and squanders mailer-funded capital on excess package and processing capacity,” said Mike Plunkett, the CEO and president of the Association for Postal Commerce, which represents businesses that use the mail. “If the incoming PMG is to have any chance at success, the postal service must immediately pause implementation of Delivering for America.” 

Specifically, Plunkett called for a moratorium on rate increases, a pause in spending on building new facilities and halting any product changes while new leadership assesses what reforms to keep, modify or unwind. 

Likewise, Jim Cochrane, the CEO of the Package Shippers Association, a trade organization, testified that USPS needs a “new vision” to improve its finances. 

“The Delivering for America plan has created a widespread degradation of package delivery service performance,” he said. “The changes, unfortunately, disproportionately affect rural communities and those in remote areas of the country.” 

Cochrane touted public-private partnerships, particularly for the “middle mile” when mail is transported between processing facilities. 

Criticizing Delivering for America has been a bipartisan trend and that continued Tuesday. 

Paul Steidler of the Lexington Institute and Thomas Schatz of Citizens Against Government Waste, both of which are conservative think tanks, argued for a pause in the overhaul plan. And the top Democrat on the Government Operations Subcommittee alluded to it in his opening remarks. 

“A lot of people have been asking me ‘Why are we paying more money for the same service?’” said ranking member Kweisi Mfume, D-Md. “And some cynically say ‘Why are we paying more money for an even worse service?’” 

The bipartisan USPS board of governors selected David Steiner, a longtime CEO of Waste Management and FedEx board member, to be the next postmaster general. DeJoy in March was pressured to resign due to conflicts with the Department of Government Efficiency, according to The Washington Post.  

The postal board has been generally supportive of Delivering for America, contending that it is necessary to modernize USPS. 

President Donald Trump, who reportedly backed Steiner, has mused about privatizing USPS or folding it under the Commerce Department.