US Postal Chief Warns of Dire Finances But Insists USPS Can Handle Election Mail
The chief of the U.S. Postal Service (USPS) said at a Board of Governors meeting Friday that the age..
The chief of the U.S. Postal Service (USPS) said at a Board of Governors meeting Friday that the agency faces a “dire” financial position and unless major changes are made to both operations and strategy, the organization will find itself in the throes of a full-blown financial crisis.
Still, postmaster general and CEO Louis DeJoy insisted in Aug. 7 remarks that, despite recent cuts to operating expenses to help the agency shore up its finances, the Postal Service is “not slowing down Election Mail or any other mail.”
Last month, DeJoy imposed cost-cutting measures meant to address the Postal Services longtime financial problems. In a July directive, the postmaster cut overtime and mandated that mail be kept until the next day if distribution centers are running late. Lawmakers from both parties have criticized the changes, with 84 House members, including four Republicans, arguing in a letter Thursday that it is “vital that the Postal Service does not reduce mail delivery hours, which could harm rural communities, seniors, small businesses and millions of Americans who rely on the mail for critical letters and packages.”
President Donald Trump, a vocal critic of the Postal Service, contended Wednesday that “the Post Office doesnt have enough time” to handle a significant increase in mail-in ballots.
“I mean youre talking about millions of votes. … Its a catastrophe waiting to happen,” Trump said.
DeJoy said the Postal Service remains “fully committed to fulfilling [its] role in the electoral process,” and that the USPS “will do everything [it] can to deliver Election Mail in a timely manner consistent with our operational standards.”
“We continue to employ a robust and proven process to ensure proper handling of all Election Mail,” he said.
In an Aug. 7 statement, the USPS said quarterly revenue for the April-June 2020 quarter rose to $17.6 billion, up $547 million compared to the same quarter last year.
“The strong growth of our package volume in the third quarter was encouraging, but there is great uncertainty about whether that growth will be sustainable,” said Chief Financial Officer Joseph Corbett.
While the USPS experienced substantial growth in its package delivery service amid the pandemic, the agency predicts this surge will subside once the economy opens up. DeJoy warned that “without dramatic change, there is no end in sight, and we face an impending liquidity crisis.”
“Our financial position is dire, stemming from substantial declines in mail volume, a broken business model and a management strategy that has not adequately addressed these issues,” DeJoy said. He added that the USPS has been losing money for over ten years, with the agency losing $9 billion last year and “2020 closing in on $11 billion in losses.”
