Postmaster General Louis DeJoy is set to resign from his position leading the U.S. Postal Service, creating a vacancy that the agency’s governing board must fill as it continues to implement contentious and wide-ranging reforms.
DeJoy has informed the USPS board to begin the search for his successor, just a few months after stating he intended to hold onto the role “until somebody hauls me out of here.” Since taking the position in 2020, DeJoy has faced heavy criticism for initiatives that slowed mail delivery, increased prices, and consolidated mail processing, although he has also received some support for presenting a long-term strategy aimed at addressing the agency’s financial woes.
The appointment of postmasters general is not bound by fixed terms and is made by the governing board. Although President Biden faced pressure to dismiss DeJoy, a longtime Republican donor with a background in private sector logistics, only the board or DeJoy himself could initiate his removal.
DeJoy acknowledged that “critical work” remains to fulfill his vision for the agency but felt it was time to initiate the process for finding his replacement. He emphasized the importance of having stable leadership for the multi-year initiatives currently underway.
“The major initiatives we are currently endeavoring are multi-year programs and it is important to have leadership in place whose tenure will span this future period,” DeJoy stated. He noted, “After four and a half years leading one of America’s greatest public institutions through dramatic change during unusual times, it is time for me to start thinking about the next phase of my life, while also ensuring that the Postal Service is fully prepared for the future.”
Under DeJoy’s 10-year Delivering for America plan, the USPS aims to streamline operations and achieve financial stability after years of losses. His approach, which includes increasing prices and reducing costs more aggressively than before, has sparked backlash from a diverse group of lawmakers, agency regulators, the inspector general, and stakeholders in the mailing community.
The current board of governors, responsible for selecting his successor, includes three Republican members, two Democrats, and an independent. President Trump has the ability to nominate three new members to fill vacant seats and a fourth to replace Roman Martinez, who is finishing a holdover year.
An industry executive speculated that DeJoy’s decision to step down could be timed to allow Trump to reshape the board, potentially leading to the appointment of someone aligned with DeJoy’s policies or a significant shift in USPS operations. During his presidency, Trump proposed privatizing the Postal Service and has hinted at considering such measures again.
DeJoy did not meet his goal of returning USPS to profitability in fiscal years 2023 and 2024 and anticipates falling short in fiscal 2025 as well. However, the agency did record a profit in the first quarter of the current fiscal year, which is unusual in the past decade. Despite facing criticism, DeJoy has asserted that his primary mandate is to ensure mail and package delivery six days a week without federal support, contending that his reforms are essential for meeting that goal.
The Postal Regulatory Commission has frequently clashed with DeJoy, recently criticizing his reform strategies as poorly conceived and lacking compelling evidence of success. Large-scale mail users have expressed discontent with the increased costs and diminished service quality. Even members of Congress from DeJoy’s own party have pledged to block his proposed changes.
The most notable components of DeJoy’s plan include consolidating mail processing into 60 mega-centers across the country, centralizing mail sorting away from local post offices, and allowing some mail to be held overnight for next-day collection. Additionally, he is investing $40 billion into the USPS for new facilities, upgrades to long-neglected workspaces, and purchasing a new fleet of vehicles—most of which will be electric.
Amber McReynolds, a Biden appointee who has just been elected as chair of the board, praised DeJoy for his dedicated service and efforts to modernize the Postal Service. She described him as a “fighter” who fostered a “competitive spirit and a culture of achievement” within the agency and pledged to continue working toward a transformed USPS.
DeJoy conveyed pride in his accomplishments and the postal workforce, commending their resilience amid the challenges posed by an outdated legislative and regulatory framework. He expressed that it had been both an honor and a personal milestone of his career to work with the USPS and support its mission of public service.
The US Postal Service is contemplating the removal of mail entry at Network Distribution Centers (NDCs) and the discontinuation of the Destination NDC (DNDC) discount, aiming to shift more mail volume to SCF/LPC facilities. As part of this future approach, mailers who currently utilize NDC volume and receive the DNDC discount will have three new options: mixed pallets for Origin Entry (without a discount), a DSCF entry discount, or a DDU entry discount specifically for Carrier Route Flats.
