Last month, US Postmaster General Louis DeJoy announced his resignation. Now, he's signed an agreement with the Department of Government Efficiency (DOGE) and the General Services Administration to discover cost-cutting possibilities. Today, we're talking about what we can expect from the government agency led by Tesla CEO Elon Musk and how you can cut your shipping costs just as aggressively as DOGE is cutting spending.

How did DOGE get involved in the USPS?

The United States Postal Service is unique in its dual mandates— to provide universal service and to be financially sustainable. The USPS has lost over $100 billion since 2007. While the Delivering for America (DFA) plan works toward minimizing losses, it reported $9.5 billion in losses last year.

In a March 17 letter to Congress, DeJoy wrote, "The fact is that DOGE is the only other game in town that seems oriented toward helping us to achieve our efficiency and cost goals that are reflected in the DFA Plan, instead of parochial protectionism that is grounded in political self-interest and that is contributing to the financial peril of the Postal Service and our universal service mandate."

What will DOGE investigate within USPS?

In his first letter to government leaders on March 13, DeJoy highlighted "self-help DFA strategies," including a 30,000-person labor force reduction since FY 2021, set to increase by another 10,000 people in the next 30 days through the USPS Voluntary Early Retirement program. USPS continues many self-directed initiatives, with DeJoy saying, "It is important to me that Congress and the public understand that the DOGE engagement is not expansive but directed."

These directed DOGE endeavors include investigating:

• Mismanagement of retirement plans

• Workers' compensation costs, resulting in $400 million in annual excessive charges

• Unfunded Congressional mandates, which cost $6-11 billion annually

• Regulatory requirements that restrict business practice and speed to market

• Lease renewals of more than 30,000 retail centers

• Leveraging postal infrastructure for federal agencies to reduce shipping costs for agencies and enhance USPS profitability

• The $1 billion issue of counterfeit postage

DeJoy told Congress, "I am not averse to offers of help that move us in the direction we are already traveling. Similarly, I am not averse to assistance in pursuit of knocking down obstacles we do not control as specified above." So when the DOGE team recently reached out to DeJoy, he decided to "direct their attention to the areas I know we can use any and all help as listed above."

Will USPS cost-cutting affect your shipping invoices?

As the Postal Service is an independent establishment of the Executive Branch, its prices are set in stone. USPS customers must pay the set rates no matter where DOGE cuts costs.

That's not the case with FedEx and UPS. When you ship with these major carriers, ShipRx can help you secure refunds through parcel audits and lower your shipping expenses through parcel rate negotiations. Contact us today and set up your free savings analysis!