Trump Must Reject USPS’ Electric Boogaloo

The United States Postal Service (USPS) is facing serious financial troubles, having lost $9. 5 billion in fiscal 2024 and projecting losses of $60 billion to $70 billion by 2030. A significant contributor to this issue is the agency's vehicle procurement plan, which allocates $9. 6 billion for 66,000 electric vehicles (EVs) that cost two to three times more than traditional vehicles. Despite the financial strain, USPS leadership has persuaded Congress to approve $3 billion in taxpayer funding for this initiative.

Incoming President Donald Trump is reportedly considering canceling USPS contracts for electric vehicles as part of a broader focus on electric vehicle policies. If the new administration can terminate these contracts, it could save taxpayers significant amounts of money and spare the USPS from further bailouts. The Postal Service has already faced challenges with delays related to charging infrastructure, with an average delay of 219 days for 29 planned charging sites.

USPS management attributes these delays to various external factors, but the Inspector General's report indicates that the agency failed to anticipate these challenges. The reports suggest a need for better scheduling and project management practices within USPS to address such issues effectively.

A previous Inspector General report also found that adopting an electric vehicle fleet would not be financially beneficial for USPS in various scenarios. The report concluded that operating an EV fleet would be more costly than using conventional vehicles, given a typical daily delivery route and annual operating days. EVs are estimated to be approximately 11% more expensive upfront, even if some savings might be realized through reduced energy and maintenance costs over time.

However, even these savings might be exaggerated, as an analysis by We Predict indicates that the service costs for electric vehicles can be significantly higher than those for gasoline-powered vehicles in the short and long terms. This contradicts the belief that EVs incur lower maintenance costs due to having fewer moving parts.

Overall, regardless of the calculations involved, the financial outlook related to electric vehicles does not bode well for either the USPS or the taxpayers required to support it. To address this situation, the Trump administration and USPS leadership should consider abandoning the electric vehicle purchase plan in favor of more traditional and reliable vehicles, allowing USPS to return to profitability. David Williams, president of the Taxpayers Protection Alliance, emphasizes this point in his commentary.

https://issuesinsights.com/2024/12/24/trump-must-reject-usps-electric-boogaloo/