An Assessment of the USPS 10-Year Plan
Under Postmaster General Louis DeJoy the United States Postal Service (USPS) launched the “Delivering for America” plan in 2021. This comprehensive 10-year plan’s goal was to make the USPS financial sustainable and service excellence. The initiative aims to reverse the projected $160 billion loss, improve on-time delivery rates to 95%, and invest $40 billion in workforce, infrastructure, and technology. While initial progress has been made, concerns persist over service quality, particularly in rural areas, and the feasibility of cost-saving projections.
In March 2025, Postmaster General Louis DeJoy resigned after 5 years in the position, leaving the agency with an uncertain future. Deputy Postmaster General Doug Tulino will take on the role until the Postal Service Board of Governors names a permanent replacement for DeJoy.
USPS Financial Challenges and Need for Reform
Mail volume has peaked | Since 2006, the volume of both total mail and first class mail has plummeted.
Prior to the launch of “Delivering for America,” the USPS faced mounting financial struggles, experiencing consecutive net losses since 2007. Contributing factors included declining mail volumes, outdated infrastructure, high employee turnover, and restrictive legislative requirements. The COVID-19 pandemic further exacerbated these issues, as demand shifted from mail to package deliveries, straining an infrastructure designed for traditional mail operations. To address these challenges, the plan incorporates modernization efforts aimed at reducing costs, increasing efficiency, and generating new revenue. By restructuring operations and investing in technology, USPS hopes to ensure long-term financial stability and maintain its universal service obligations.
Key Strategies and Goals
Network Modernization
Establishing Regional Processing Distribution Centers (RPDCs) and Sorting & Delivery Centers (S&DCs) to streamline operations and enhance efficiency.
Cost Reduction
Implementing measures to achieve $36 billion in savings through optimization of transportation, mail processing, and retail services.
Revenue Growth
Expanding package delivery services and refining pricing strategies to increase net revenue by $24 billion.
Legislative Support
The Postal Service Reform Act of 2022 provided financial relief, particularly by addressing retiree health benefit expenses.
Workforce and Infrastructure Investments
Allocating $40 billion toward facility upgrades, new technology, and employee training to improve operational efficiency and working conditions.
Service Standard Adjustments
Refining delivery timeframes to enhance service reliability while maintaining universal delivery commitments.
A Deeper Look Into the Top Challenges
Financial Performance
Although the plan set an ambitious goal of achieving break-even operations by 20232024, financial results have been mixed. In early years, USPS reported continued losses despite revenue growth in certain sectors. The Postal Regulatory Commission (PRC) has questioned whether the projected cost savings are achievable and whether service disruptions caused by consolidation efforts may offset potential financial gains. Network modernization includes regional sorting centers, reducing reliance on individual post offices for mail processing. This more selfservice and digital transition plans to reduce post office congestion and labor costs. Recent reports indicate improvements in revenue trends and reductions in transportation costs. Rate increases and pricing changes have already been implemented, with further adjustments expected over time. However, ongoing concerns about expenses exceeding initial projections and external factors such as inflation and legislative changes remain challenges in achieving financial stability.
Service Quality
Service reliability is a cornerstone of “Delivering for America.” While USPS has reported improvements in on-time delivery rates, the impact of network modernization on service quality has raised concerns. The PRC and other oversight bodies have highlighted potential service degradation, particularly in rural areas where facility consolidations have led to longer transit times. Public response to these changes has been mixed, with some regions experiencing improved efficiency while others report delays and inconsistencies. To address these concerns, stakeholders have called for greater transparency and better tracking of service performance at the local level.
The Next Generation Delivery Vehicle (NGDV) Program
A critical component of the plan is the $6 billion Next Generation Delivery Vehicle (NGDV) program, aimed at replacing the USPS’s aging fleet. The initiative prioritizes safer, more efficient vehicles, including a transition toward electric options to improve sustainability. However, the program has faced delays and political opposition, with some lawmakers pushing to limit funding for electric vehicle purchases. The initial plan required 10% of new postal vehicles to be electric, but public pressure increased the target. In December 2022, USPS announced 45,000 out of 60,000 NGDVs would be electric by 2028.
Trump’s Proposed Pause of Rollback of the Plan
President Donald Trump has strongly criticized the USPS 10-Year Plan, calling it inefficient and has proposed significant changes. He argues that despite the 10-Year Plan’s initiatives, USPS remains financially unstable.
Outline of Trump’s Proposed Changes
- Potential Privatization: Speculation exists that Trump may push for greater private-sector involvement in USPS operations.
- Structural Overhaul: Trump has proposed placing the USPS under the Commerce Department, removing its independent status.
- Electric Vehicle Rollback: Trump’s opposition to electric vehicles (EVs) could lead to the cancellation of existing contracts for the new electric fleet, favoring traditional gas-powered vehicles. Democrats, environmental groups, and postal unions strongly oppose reversing the electrification plan, citing climate goals.
- Reversal of Facility Consolidation: Delays or reversals in facility consolidation could lead to increased operational costs.
- Leadership Changes: Potential staffing and operational changes if Trump appointed a new Postmaster General.
Conclusion
As debates continue over the future of the postal service, the USPS 10-Year Plan remains a pivotal issue in discussions of government efficiency, financial sustainability, and modernization efforts.
Supporters argue that modernization is essential for USPS’s sustainability, while critics fear that the plan may lead to privatization, job losses, and diminished service quality. Postal unions have expressed concerns over facility closures and workforce restructuring, advocating for stronger job protections and service guarantees. Meanwhile, some lawmakers have proposed alternative solutions, including increased government funding and regulatory changes to provide USPS with greater financial flexibility.
The role of USPS in national infrastructure, particularly in delivering election ballots and essential goods, adds another layer of complexity to discussions about reform. As political administrations change, the direction of postal service policies could shift, impacting the implementation of key initiatives.
