Postal service reform plans presented by the USPS show minimal compelling proof of their success, according to the regulatory body.
The Postal Regulatory Commission (PRC) has issued a scathing advisory opinion, expressing concerns that the United States Postal Service's (USPS) proposed reforms, known as Delivering for America, may lead to a decrease in service and reliability.
The PRC's opinion states that the implementation of Postmaster General Louis DeJoy's plan has negatively impacted USPS performance since 2021 and is not yet ready for implementation. The commission estimates that half of all ZIP Codes will experience downgraded service for regular, First-Class mail, with some populations not receiving First-Class mail pieces for six or more days.
The PRC specifically examined two parts of DeJoy's plan: the Regional Transportation Optimization initiative and the processing plant consolidations. The commission noted that the consolidation plan is unlikely to "create a more efficient network compared to the legacy network." The regulators also urged the Postal Service to better prepare for its RTO initiative, as the plan was rushed, included incomplete information on impacts, and lacked regional specificity.
The commission also pointed out that the USPS failed to provide empirical evidence to support its cost savings claims. Even if fully realized, the savings would reduce the annual operating costs by just 4%. Those savings, according to the commission, are "not likely to significantly improve the Postal Service's financial condition."
In areas where the Postal Service has implemented its plans, such as Richmond, Virginia, and Atlanta, performance has declined precipitously. The commission further noted that rural communities will experience the impacts of the changes more significantly.
Sen. Josh Hawley, R-Mo., has pledged to work against DeJoy's plan and "go to the mat" on the issue. DeJoy and postal management have maintained that all steps to overhaul the Postal Service are necessary for its survival, and anyone standing in their way would hasten its demise.
In response to the PRC's criticism, DeJoy has promised to take the opinion seriously and adjust his plan as necessary. Postal management has announced lower on-time delivery targets for 2025, with expectations of delivering regular cards and letters slated for two-day delivery on time only 87% of the time in fiscal 2025, compared to a goal of 93% in fiscal 2024. For mail scheduled to be delivered in three-to-five days, USPS now hopes to deliver 80% on time compared to 90% in fiscal 2024.
The commission has made more than three-dozen recommendations for updating DeJoy's reforms. The regulatory authority aims to ensure universal mail service, maintain reliability, promote financial sustainability, and address operational challenges in revising the Delivering for America plan.
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