A little-noticed Provision of Trump (R) Tax and Immigration Legislation, would force the Government to undo Billions of Dollars in Electric Vehicle (EVs) Investments made by the U.S. Postal Service, Unwinding much of the Biden (D) Administration’s Climate Push at the Mail Agency, while Dealing it a Sharp Financial Setback.
The Postal Service in 2022, embarked on Plans to purchase 66,000 Electric Mail Delivery Vehicles from the Defense Contractor Oshkosh. The Agency has also purchased Hundreds of E-Transit Delivery Vans from Ford, and spent more than half a billion dollars Remodeling its Outdated Mail and Package Sorting Facilities to accommodate Electric and Low-Emissions Vehicles.
The Agency expects to spend $9.6 billion on the Project in total: $3 billion of that comes from Taxpayer Dollars to Cover the Cost Difference between Gas-Powered Vehicles and moreEexpensive EVs. The remaining Funding comes from the Postal Service’s IndependentAaccounts. The Agency is largely SelfSsufficient, Financed by the Sale of Postage Pproducts.
The Senate’s Version of Trump’s One Big Beautiful Bill, would see the General Services Administration (GSA) take Possession of the nearly 7,200 Nnew Postal EVs and Associated Infrastructure and put the Assets Up-for-Auction. The Proposal is unlikely to Generate much Revenue for the Government. There is almost No Private-Sector Interest in the Mail Trucks, and used EVs Charging Equipment, built specifically for the Postal Service, and already Installed in Postal Facilities, generally Cannot be Resold.
“The funds realized by auctioning the vehicles and infrastructure would be negligible. Much of infrastructure is literally buried under parking lots, and there is no market for used charging equipment,” Peter Pastre, the Postal Service’s Vice President for Government Relations and Public Policy, wrote to Senators this month. A Summary of the Legislation released by Sen. Rand Paul (R-KY), who Chairs the Homeland Security and Governmental Affairs Committee, said the Provision “aims to cut unnecessary costs and focus USPS on delivering mail and not achieving the environmental initiatives pushed by the Biden Administration.”
The Proposal comes as Congressional Republicans search Desperately for Spending Cuts to Offset the nearly $4 trillion Cost of their Tax Policies. The Legislation would extend Tax Cuts from Trump’s First Term and end Taxes on Tips and Overtime Wages, while Spending hundreds of billions of dollars on Immigration Enforcement and National Defense. To Offset the Cost and Reduce Federal Borrowing, the Legislation would Cut more than $1 trillion from Social Safety Net Programs, and Unwind most of Biden’s 2022 Inflation Reduction Act, which included the Largest U.S. investment to Combat the Climate Crisis.
The Mail Trucks were part of that Program. Biden Administration Officials hoped that Postal Procurement would Bolster the Small but Growing Domestic EVs Market, both for Commercial Fleets and Individual Consumers. But the GOP’s Bill Eliminates almost All of the Biden-era EVs and Clean Energy Incentives; House and Senate Republicans are Debating whether to Cut them immediately or Phase them Out over several Years.
The Main source of Savings from the Postal Proposal would come from Revoking Unspent Funding, though much of that Money has been Obligated as part of the Postal Service’s Contracts with Vehicle and Infrastructure Vendors. “It will cost the Postal Service $1.5 billion of funds that we desperately need in order to serve the American people, and it will seriously cripple our ability to replace an aging and obsolete delivery fleet,” Pastre wrote. “We urge the Senate and the committee to pause and consider the substantial harm this proposal would cause to the Postal Service and our customers, your constituents.”
The Postal Service is in desperate need of New Delivery Vehicles. Its fFeet of “Long Life Vehicles” hit the Streets between 1987 and 1994. The Trucks are so Old, the Mail Agency must Reverse-Engineer Discontinued Vehicle Parts to conduct Basic Repairs. The Vehicles occasionally Burst into Flames due to Decades of Overuse. But the Program to Replace those Trucks has faced significant Setbacks. Oshkosh encountered Delays and Engineering Problems during Early Manufacturing Runs, and Disagreements, and Accusations of Corporate Dishonesty, among Executives Plagued the Production Process.
Oshkosh was supposed to have Delivered about 3,000 Vehicles by the End of 2024. Instead it had provided roughly 100, and Raised its Prices as the Postal Service Ordered additional EVs. After Congress Approved Vehicle Funding for the Agency, Oshkosh Charged an Inflation Reduction Act “Premium Adjustment” that Increased the overall Value of the Oshkosh Purchase by more than half a billion dollars, according to Company Financial Disclosures.
Postal Service Stakeholders are set to Testify before a House Oversight and Government Reform Subcommittee Tuesday, to Discuss the Mail Service’s Finances and Operations.
NYC Wins When Everyone Can Vote! Michael H. Drucker
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