Postmaster general eyes aggressive changes after election

Postmaster General Louis DeJoy has mapped out far more sweeping changes to the U.S. Postal Service than previously disclosed, considering actions that could lead to slower mail delivery in parts of the country and higher prices for some mail services, according to several people familiar with the plans.

The plans under consideration, described by four people familiar with Postal Service discussions, would come after the election and touch on all corners of the agency’s work. They include raising package rates, particularly when delivering the last mile on behalf of big retailers; setting higher prices for service in Alaska, Hawaii and Puerto Rico; curbing discounts for nonprofits; requiring election ballots to use first-class postage; and leasing space in Postal Service facilities to other government agencies and companies.

DeJoy, a former logistics executive and ally of President Trump, envisions aggressive cost-cutting maneuvers that he and other conservatives say are necessary to strengthen the agency’s financial footing. But they also would represent the biggest reshaping of the agency in generations and would likely draw severe criticism from people and organizations that rely on the mail service for timely delivery, particularly in less populated regions of the country.

DeJoy — the first postmaster general without a history at the agency in 28 years, who took over in June — began implementing policies within eight weeks of taking office. But he temporarily backed off this week amid heavy criticism that the moves were causing delays in mail delivery and could undermine the November election, which will rely heavily on mail-in ballots because of the coronavirus pandemic.

DeJoy is set to testify Friday in the Senate and again Monday in the House about the status of the service. The USPS did not respond to requests for comment Thursday, and it is possible he will change the particulars of any plans under discussion after the election.

Still, he has made clear he intends to introduce long-term change.

“I came to the Postal Service to make changes to secure the success of this organization and its long-term sustainability,” he said Tuesday in announcing temporary suspension of controversial policies such as limiting overtime for postal workers and dismantling mail-sorting machines. “I believe significant reforms are essential to that objective, and work toward those reforms will commence after the election.”

DeJoy has told associates he was brought in to stem the Postal Service’s losses and that drastic changes were needed to make the agency solvent. He is determined to stay the course and make wholesale changes after the election, an associate who spoke with him recently said.

The Postal Service carries $160.9 billion in debt and has struggled financially for years as volumes of first-class and marketing mail — its most profitable products — tumbled. The USPS also is grappling with a crush of packages as consumers have become more reliant on e-commerce to avoid venturing out during the pandemic, creating logistical problems for an agency designed mostly to move paper, not boxes.