Louis DeJoy’s days as the postmaster general may be numbered. On July 25, President Biden nominated former Rep. Val Demings, D-Fla., to be a governor on the U.S. Postal Service Board of Governors.
Governors are responsible for choosing postmasters general, and Demings joins the growing rankings of governors critical of DeJoy. Despite the urge to oust DeJoy, Demings must wield her power wisely and ensure that any new postmaster general doesn’t plunge the Postal Service deeper into debt. It’s a bleak time for America’s mail carrier, and the future postal governor must tread carefully.
As Biden attempts to build a coalition to oust the embattled DeJoy, pundits and policymakers have kept watch on open seats on the Board of Governors. DeJoy has weathered plenty of criticism from lawmakers for a mail slowdown and rising stamp prices. Still, it’s ultimately up to the governors to replace the top seat.
Demings could be the pivotal vote in getting rid of DeJoy, and there would be no love lost between the two. When DeJoy announced consolidations in 2020, then-Rep. Demings assailed DeJoy, stating, “The one thing we should not debate about is whether or not we are going to support the United States Postal Service.” She’s also supported taxpayer subsidies for the USPS. According to Demings, the institution “deserves better than crumbs from the table.”
The Postal Service has received far more than “crumbs” from taxpayers. The agency received $10 billion from Congress to offset pandemic-related losses, originally supposed to be a loan but turned into a grant. Then there’s the $3 billion Congress gave to purchase electric trucks. Add in the more than $3 billion yearly in subsidies the agency rakes in through tax gimmicks and preferential loans, and the service has a treasure chest of taxpayer dollars.
Demings seems to buy into the false notion that DeJoy’s consolidations are the sole cause of the agency’s woes. While DeJoy has encountered plenty of criticism, he did offer some necessary reforms, such as reducing the amount of redundant equipment and facilities.
There’s more than one reason for mail delays. In a recent report about conditions at the South Houston Local Processing Center (LPC), the USPS inspector general unearthed multiple issues, including “delayed mail awaiting processing; delayed mail awaiting dispatch; facility conditions with safety, security and maintenance concerns; and a lack of communication with stakeholders.”
The LPC had underreported the volume of delayed mail by about 60 percent, and there were “224,000 pieces of delayed mail waiting to be dispatched to other locations across the nation.”
The IG states: “When transportation is not properly planned and scheduled to align with the operational needs, the mail will not be delivered on time, which adversely affects Postal Service customers and harms the Postal Service brand.”
An overwhelming volume of packages has contributed to delivery woes. According to a May 2024 IG report, the Bemidji Post Office (in Minnesota) encountered significant delays and staff shortages because “headquarters management did not have a comprehensive plan to assess resources at the (post office) before adding additional package volume to its delivery operations.” Staff is having to work overtime because of significant package drop-offs.
Demings can help address these concerns, but she needs to move beyond calling for more taxpayer funding and consolidation freezes. One collaboration area could be with postal unions, who have long been critical of a policy called “workshare discounts.”
The service extends $15 billion of these discounts to private businesses that perform mailing-related work, such as pre-sorting and bar-coding mail on the agency’s behalf. Outsourcing postal operations and giving private players skin in the game is a solid idea, but only if the postage discounts correspond to actual savings.
A February 2024 IG report notes that the USPS “does not have detailed procedures that document responsibilities for calculating avoided costs and workshare discounts for First-Class Mail and Marketing Mail letters and enable management to effectively monitor those control activities.”
In addition, the USPS fails to monitor data inputs that go into its workshare discount pricing models. The USPS wants taxpayers and consumers to suspend disbelief and trust that it is properly extending $15 billion in discounts despite the agency’s many fiscal missteps.
Change is scary but can be a force for good. Demings should insist on increased transparency and accountability and work with postal leaders who can rein in runaway agency spending. This approach is far better than a single-minded focus on replacing DeJoy. With pragmatic policies, the USPS’ governors can get the agency on firmer fiscal footing.
