The U.S. Postal Service (USPS) has announced a controversial agreement with Elon Musk’s Department of Government Efficiency (DOGE) to cut 10,000 jobs and reduce operating costs by billions of dollars. The move, part of a broader effort to address the agency’s financial struggles, has sparked fierce criticism from lawmakers and labor unions, who warn that the plan could lead to privatization and severe service disruptions.
The DOGE Agreement
In a letter to Congress, U.S. Postmaster General Louis DeJoy revealed that the USPS has signed an agreement with DOGE to streamline operations and cut costs. The plan includes eliminating 10,000 jobs within the next 30 days through a voluntary early retirement program. DeJoy described the Postal Service as having a “broken business model” that is “not financially sustainable without critically necessary and core change.”
The USPS, which operates as an independent entity, has faced significant financial challenges in recent years, with losses nearing 100billionandprojectionsofanadditional200 billion in losses. DeJoy emphasized that the agreement with DOGE aims to address “big problems” at the $78 billion-a-year agency, including mismanagement of retirement assets and restrictive regulatory requirements.
The letter: pmg-dejoy-to-congressional.leaders_3.13.2025
Critics Sound the Alarm
Despite DeJoy’s assurances, critics argue that the agreement could undermine the Postal Service’s mission and lead to privatization. Democratic U.S. Rep. Gerald Connolly of Virginia, who received the letter, condemned the move, warning that it would have “catastrophic consequences” for Americans.
“The only thing worse for the Postal Service than DeJoy’s ‘Delivering for America’ plan is turning the service over to Elon Musk and DOGE so they can undermine it, privatize it, and then profit off Americans’ loss,” Connolly said in a statement. He added that reliable mail delivery should not be reserved for “MAGA supporters and Tesla owners,” emphasizing the importance of universal service.
Labor Unions Push Back
The National Association of Letter Carriers (NALC) also expressed concerns about the agreement. While NALC President Brian L. Renfroe acknowledged the need for solutions to the Postal Service’s financial woes, he firmly opposed any move toward privatization.
“Common sense solutions are what the Postal Service needs, not privatization efforts that will threaten 640,000 postal employees’ jobs, 7.9 million jobs tied to our work, and the universal service every American relies on daily,” Renfroe said.
The USPS currently employs about 640,000 workers, who handle deliveries across the country, from urban centers to rural areas and remote islands. The planned job cuts come on the heels of previous reductions, including the elimination of 30,000 positions in 2021.
A History of Financial Struggles
The Postal Service has long grappled with financial instability, driven by the decline of first-class mail and rising operational costs. Despite operating as an independent entity since 1970, the agency has faced repeated calls for privatization, including from former President Donald Trump. Last month, Trump suggested placing the USPS under the control of the Commerce Department, a move that would mark a significant shift in the agency’s governance.
The agreement with DOGE is part of a broader effort to cut operating costs by more than $3.5 billion annually. However, critics argue that such measures could compromise the agency’s ability to provide reliable service, particularly in rural and hard-to-reach areas.
What’s Next for USPS?
As the Postal Service moves forward with its cost-cutting plan, the debate over its future is likely to intensify. Supporters of the agreement argue that drastic measures are necessary to ensure the agency’s survival, while opponents fear that the cuts could pave the way for privatization and erode the universal service mandate that has defined the USPS for decades.
For now, the fate of the 10,000 workers facing job cuts remains uncertain, as does the long-term impact of the DOGE agreement on the Postal Service’s operations and mission.
The USPS’s agreement with DOGE to cut 10,000 jobs has ignited a fierce debate about the future of the Postal Service. While Postmaster General Louis DeJoy insists that the move is necessary to address the agency’s financial challenges, critics warn that it could lead to privatization and undermine the universal service that millions of Americans rely on. As the Postal Service navigates this critical juncture, the stakes for its employees, customers, and the nation as a whole could not be higher.
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