United States Postal Service


The United States Postal Service is an independent agency of the executive branch of the United States federal government responsible for providing postal service in the United States, its insular areas and associated states. It is one of a few government agencies explicitly authorized by the Constitution of the United States. The USPS began operations in 1971, replacing the United States Post Office Department, a Cabinet department. As of March 29, 2024, the USPS has 525,377 career employees and nearly 114,623 pre-career employees.
The USPS has a monopoly on traditional letter delivery within the United States and operates under a universal service obligation, both of which are defined across a broad set of legal mandates, which obligate it to provide uniform price and quality across the entirety of its service area. The Post Office has exclusive access to letter boxes marked "U.S. Mail" and personal letterboxes in the U.S., but has to compete against private package delivery services, such as United Parcel Service, FedEx, and DHL.

History

The first national postal agency in the US, known as the United States Post Office was founded by the Second Continental Congress in Philadelphia on July 26, 1775, at the beginning of the American Revolution. Benjamin Franklin was appointed the first postmaster general; he also served a similar position for the American colonies. The Postal Clause was then included in the United States Constitution when it was ratified in 1788, authorizing the U.S. Congress to "establish post offices and post roads"; the original intent of the clause was to facilitate interstate communication as well as to create a source of revenue for the early United States.. The Post Office Department was then created in 1792 with the passage of the Postal Service Act. It was elevated to a cabinet-level department in 1872, and was transformed by the Postal Reorganization Act of 1970 into the U.S. Postal Service as an independent agency.
In 1844, entrepreneur and legal theorist Lysander Spooner challenged the Post Office's monopoly by founding the American Letter Mail Company, which offered lower rates and faster service between major cities. Although popular with customers, his enterprise was ultimately shut down by federal legal pressure, prompting Congress to reinforce the postal monopoly in 1851.
The Post Office Department owned and operated the first public telegraph lines in the United States, starting in 1844 from Washington to Baltimore, and eventually extending to New York, Boston, Buffalo, and Philadelphia. In 1847, the telegraph system was privatized, except for a period during World War I, when it was used to accelerate the delivery of letters arriving at night.
Between 1942 and 1945, "V-Mail" service was available for military mail. Letters were converted into microfilm and reprinted near the destination, to save room on transport vehicles for military cargo.
The United States Information Agency helped the Post Office Department, during the Cold War, to redesign stamps to include more patriotic slogans. On March 18, 1970, postal workers in New York City—upset over low wages and poor working conditions, and emboldened by the Civil Rights Movement—organized a strike. The strike initially involved postal workers in only New York City, but it eventually gained support of over 210,000 postal workers across the nation. While the strike ended without any concessions from the federal government, it did ultimately allow for postal worker unions and the government to negotiate a contract which gave the unions most of what they wanted, as well as the signing of the Postal Reorganization Act by President Richard Nixon on August 12, 1970. The act replaced the cabinet-level Post Office Department with a new federal agency, the U.S. Postal Service, and took effect on July 1, 1971.
Among the changes from the Postal Reorganization Act, a key aspect was the requirement for the USPS to be self-financing, which introduced a conflict with its other requirement to provide a nationwide service. The next major legislation affecting the service, the Postal Accountability and Enhancement Act, was passed in 2006. This act limited the services that the Postal Service could offer to only those it already provided and also established a requirement for the USPS to save money for the medical benefits of future retirees. The Act set a goal to save $5 billion per year for the first 10 years of a 50-year schedule, however within 6 years the Postal Service began to default on its payments. The Postal Service experienced lower revenues as mail use declined in the 2010s. In 2012, in order to be able to meet obligations for payroll and continuing its operations, the Postal Service defaulted on payments due for retirements benefits in August and again in September that year. In September 2014, it defaulted on the payments for the fourth time, and continued to default into 2017. The Postal Service sought financial reforms from Congress for relief from the funding obligation and debt from the defaults. Legislation was introduced in Congress in 2016 as well as in 2019, aiming to remove the benefits funding obligations, however no new legislation was passed until the 2022 Postal Service Reform Act. The PSRA was signed into law in April 2022. It forgave $57 billion in Postal Service debt and released it from the obligation to set aside funds for future retirees' healthcare, as well as adding requirements for delivery timing and reporting on performance metrics, and allowing the Postal Service to offer some non-mail services.

Current operations

Deliveries

As of 2023, the Postal Service operates 33,641 Post Office and contract locations in the U.S., and delivered a total of 127.3 billion packages and pieces of mail to 164.9 million delivery points in fiscal year 2022.
USPS delivers mail and packages Monday through Saturday as required by the Postal Service Reform Act of 2022; on Sundays only Priority Express and packages for Amazon.com are delivered. The USPS delivers packages on Sundays in most major cities. During the four weeks preceding Christmas since 2013, packages from all mail classes and senders were delivered on Sunday in some areas. Parcels are also delivered on holidays, with the exception of Thanksgiving and Christmas. The USPS started delivering Priority Mail Express packages on Christmas Day in select locations for an additional fee.
The holiday season between Thanksgiving and Christmas is the peak period for the Postal Service, representing a total volume of 11.7 billion packages and pieces of mail during this time in 2022.

Fleet

The USPS operates one of the largest civilian vehicle fleets in the world, with over 235,000 vehicles as of 2024, the majority of which are the distinctive and unique Chevrolet/Grumman LLV, and the similar, newer Ford-Utilimaster FFV, originally also referred to as the CRV. The LLVs were built from 1987 to 1994 and lack air conditioning, airbags, anti-lock brakes, and space for the large modern volume of e-commerce packages, the Grumman fleet ended its expected 24-year lifespan in fiscal year 2017. The LLV replacement process began in 2015, and after numerous delays, a $6 billion contract was awarded in February 2021 to Oshkosh Defense to finalize design and produce 165,000 vehicles over 10 years. The Next Generation Delivery Vehicle, will have both gasoline and battery electric versions. Half of the initial 50,000 vehicles will be electric, as will all vehicles purchased after 2026.
The number of gallons of fuel used in 2009 was 444 million, at a cost of. For every penny increase in the national average price of gasoline, the USPS spends an extra million per year to fuel its fleet.
The fleet is notable in that many of its vehicles are right-hand drive, an arrangement intended to give drivers the easiest access to roadside mailboxes. Some rural letter carriers use personal vehicles. All contractors use personal vehicles. Standard postal-owned vehicles do not have license plates. These vehicles are identified by a seven-digit number displayed on the front and rear.

Electrifying the USPS fleet

Starting in 2026, all delivery truck purchases are scheduled to be electric vehicles, partly in response to criticism from the Environmental Protection Agency and an environmental lawsuit, and also due to availability of new funding provided by the Inflation Reduction Act of 2022. The Act included $3 billion for electric USPS vehicles, supporting the initiative by Postmaster General DeJoy and the Biden Administration to add 66,000 electric vehicles to the fleet by 2028. The electric fleet will be composed of 9,250 EVs manufactured by Ford; 11,750 commercial off-the-shelf EVs; and 45,000 Oshkosh Next Generation Delivery Vehicles. In February 2023, the Postal Service announced its purchase of the Ford EVs as well as 14,000 electric vehicle charging stations. The fleet electrification plan is part of the Postal Service's initiative to reduce carbon emissions from fuel and electricity 40 percent and emissions from contracted services 20 percent by 2030. The bulk of the savings comes from less expensive 'fuel' and less required maintenance. Other benefits include less pollution where children live and play.
In August 2024, the USPS deployed the first new vehicles from its fleet modernization project at its Topeka Sorting and Delivery Center in Kansas, including: an electric vehicle with higher clearance for routes delivering a high number of packages, and an electric delivery vehicle produced in partnership with Canoo that is a "pod-like" smaller van.

Operation and budget

In fiscal year 2022, the Postal Service had $78.81 billion in revenue and expenses of $79.74 billion. Due to one-time appropriations authorized by the Postal Service Reform Act of 2022, the agency reported a net income of $56.04 billion. In the 2023 fiscal year, revenue had increased to $79.32 billion, but reported a net loss of $6.48 billion. In the 2024 fiscal year, revenue increased to $79.53 billion but reported a net loss of $9.5 billion.