U.S. postmaster general plans to step down; his planned changes could have impacted rural communities the most

After four difficult years, DeJoy is stepping down
from his post. (Adobe Stock photo)

 

Earlier this week, Postmaster General Louis DeJoy announced plans to step down "capping a contentious tenure since his 2020 appointment during the first Trump administration," reports Ester Fung of The Wall Street Journal. "The U.S. Postal Service didn’t provide a date for DeJoy’s exit." His resignation comes as the USPS continues to roll out its 10-year turnaround plan. 

With only modest improvements, increased debts and persistent delivery problems at the Postal Service, some lawmakers have regularly grilled DeJoy for what they see as a failed strategy. Fung reports, "The Postal Regulatory Commission, the federal agency that oversees the Postal Service, last month criticized his plan as having 'overly optimistic and unsubstantiated financial projections for cost savings' and said it could hurt rural communities."

DeJoy has repeatedly defended his plans and pointed out that "when he first arrived at the Postal Service, it was in 'devastating condition' and resistant to change, and faced excessive regulatory oversight," Fung adds.

Some of DeJoy's restructuring plans were successful, "including consolidating routes, replacing aging vehicles and improving working conditions in several facilities," Fung explains. "The agency has also taken market share in small packages from private-sector rivals such as FedEx and UPS as it ferries more parcels over longer distances, not just for final-mile deliveries."

Even with improved small package revenues, the Postal Service continues to lose money. Fung adds, "In 2024, the agency reported a net loss of $9.5 billion, which, after adjusting for workers’ compensation and retirement liabilities, resulted in a controllable loss of $1.8 billion." The Postal service does not rely on federal funding to pay its bills. Instead, it depends on the sale of postage, products and other services to cover its costs.

DeJoy's exit may not come as a surprise. "The Trump White House had been considering replacing DeJoy, according to two people familiar with the matter," Fung adds, "though the postmaster general is typically chosen by the board and not the president."