USPS faces DOGE audit calls
The United States Postal Service is facing some calls to undergo a Department of Government Efficiency (DOGE) audit.
Newsweek has contacted USPS and DOGE for comment via email outside of regular working hours.
Why It Matters
The newly created DOGE, overseen by tech billionaire Elon Musk, has been tasked with finding ways to streamline government processes and cut spending. The unofficial government department has already begun audits of several government agencies, including the Treasury Department, the Internal Revenue Service, and the Social Security Administration.
The USPS is older than the United States itself, having been founded in 1775. It became a financially self-sustaining government agency in 1970 and, according to the Pew Research Center, is one of the most well-liked federal agencies. But it has suffered significant financial losses in recent years.
What To Know
Internet personality Mario Nawfal posted on X, formerly Twitter, on February 19: "The USPS financial nightmare demands DOGE's immediate attention."
He said the company, which is an independent agency of the executive branch, suffered a "staggering $9.9 billion operating loss in 2024 and total liabilities of $78.2 billion against assets of just $45.6 billion, the Postal Service is effectively underwater by $32.6 billion."
USPS itself has reported a $9.5 billion loss in the fiscal year ending in September 2024, compared to a net loss of $6.5 billion in the fiscal year prior.
"Despite implementing a 10-year plan, the USPS saw its losses increase by nearly $3 billion this year," Nawfal continued. "Most concerning: cash reserves dropped from $8 billion to just $4.6 billion while debt jumped to $15 billion."
Nawfal said the problem does not just lie with "declining mail volume," but that it pays out "bloated" salaries and retirement benefits. According to Payscale, USPS pays its workers an average of $65,293 per year. In 2023, the median annual wage for all U.S. workers was $48,060, according to the Bureau of Labor Statistics.
Musk himself responded to a post by another internet personality and political commentator David J. Freeman commenting on the financial state of the USPS.
Freeman wrote: "What other company could lose over $100B and stay in business?"
He also drew attention to the new USPS mail delivery trucks, part of a nearly $10 billion investment to modernize its fleet of aging delivery vehicles.
Musk responded with: "Wow."
In late 2024, the House Committee on Oversight and Accountability reported that the financial condition of USPS "remains poor," telling outgoing Postmaster General Louis DeJoy that he must "implement cost-effective measures to achieve financial self-sufficiency." USPS implemented a 10-year plan to stabilize its finances in 2021.
President Donald Trump has also spoken of plans to potentially privatize the service. According to The Washington Post, he held talks with newly appointed Commerce Secretary Howard Lutnick regarding the matter in December 2024, prior to his inauguration.
What People Are Saying
Mario Nawfal on X: "DOGE could identify cost-cutting opportunities in inefficient delivery routes, outdated facilities, and administrative bloat."
House Committee on Oversight and Accountability Chairman James Comer said in December 2024: "I give Mr. DeJoy credit for delivering a plan to fix the Postal Service. But the Postal Service is hemorrhaging red ink. This year's loss was almost $10 billion. Next year's loss is projected to be $6.5 billion. When you predicted the Postal Service could break even, did you not foresee some of these other issues? The Postal Service has added over 100,000 career employees, but your personnel costs and retirement expenses are your biggest liabilities. This isn't going to work unless you look for ways to do more with fewer people."
What Happens Next
Whether DOGE will implement an audit of USPS is not yet known.