Impact of Trump Era Bill on USPS Electric Vehicles Investments
President Donald Trump’s bill, backed by Republicans, could affect the US Postal Services’ massive investment in electric vehicles, potentially reversing a significant part of the Biden administration’s climate initiatives and putting a dent in USPS’s finances.
USPS’s Extensive Investments in Electric Vehicular Fleet
In 2022, the USPS kicked off its plan to acquire 66,000 electric delivery vehicles, including specially designed “Next Generation Delivery Vehicles” from defense contractor Oshkosh. Additionally, USPS invested in hundreds of E-Transit delivery vans from Ford and spent over half a billion dollars to update its antiquated mail and package sorting facilities to accommodate electric and environmentally-friendly vehicles.
Funding of USPS’s Electric Vehicle Project
The total project cost is estimated at $9.6 billion, with $3 billion contributed by taxpayers to compensate for the price difference between gas-powered and more expensive EVs. USPS, which is primarily financed by stamp sales, covers the remaining funding from its independent accounts.
Potential Impact of the Senate’s Version of Trump’s One Big Beautiful Bill
The Senate’s version of Trump’s bill proposes that the General Services Administration seize nearly 7,200 new postal EVs and related infrastructures and auction them. However, this proposal is unlikely to generate substantial revenue as there’s little private-sector interest in mail trucks, and the used EV charging equipment, custom-made for USPS and installed in postal facilities, is generally non-resalable. As stated by Peter Pastre, the Postal Service’s VP for government relations and public policy, “the funds realized by auctioning the vehicles and infrastructure would be negligible.”
Postal Service’s Desperate Need for New Delivery Vehicles
The USPS’s need for new delivery vehicles is vital. Their fleet of “Long Life Vehicles” was introduced between 1987 and 1994, and due to age, requires reverse-engineering of discontinued parts for basic repairs. In some cases, these vehicles spontaneously catch fire due to decades of overuse. However, the replacement program has been plagued by setbacks, including delays and engineering issues with Oshkosh, disagreements, and allegations of corporate dishonesty. As a result, by the end of 2024, Oshkosh was only able to deliver around 100 of the expected 3,000 vehicles and raised its prices as USPS ordered more EVs.
Controversy Surrounding the USPS Electric Vehicle Program
Some allies of Trump have flagged the program as a case of government wastage. Representative Marjorie Taylor Greene criticized the vehicles as “a Democrat Green New Deal scam that’s throwing your money away.” Even Elon Musk, a former ally of Trump, agreed that the cost per truck was exorbitantly high.
Upcoming Discussion on USPS’s Finances and Operations
Stakeholders of the Postal Service are scheduled to testify before a House Oversight and Government Reform subcommittee to debate USPS’s finances and operations.
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