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National Review
National Review
9 Dec 2024
John Fund


NextImg:The Corner: The Wasteful Postal Service Keeps Growing as Service Declines

The U.S. Postal Service is in crisis yet again. Four years after it scored a $107 billion bailout from the government, it has managed to lose $9.5 billion in the last fiscal year. This year, it sought an increase in its borrowing limit with the Treasury Department.

Last week, Senator Rand Paul used an oversight hearing on the USPS to reveal that much of its problem lies in its decision to convert 190,000 employees to permanent positions with union benefits — thus ballooning its debt. Paul told Postmaster General Louis DeJoy that he should use cheaper, contracted employees to stop the bleeding.

USPS responds that its red ink is due to its many uncontrollable costs. But Paul noted that it is also investing in huge projects such as the electrification of its entire delivery fleet of 66,000 vehicles. The price tag for that is at least $3 billion.

Reuters reports that Donald Trump’s transition team may try to start unwinding those contracts. In any event, the USPS hemorrhaging debt looks like a perfect subject for scrutiny by Elon Musk’s DOGE commission.