A Biden administration initiative to electrify the postal fleet has come under fire after only 250 electric mail trucks have been rolled out in over two years — despite billions in taxpayer money being allocated for the production of tens of thousands of vehicles. Furious Republican lawmakers are now branding the effort a costly failure.
The nearly $10 billion plan was intended to provide the U.S. Postal Service with more than 35,000 battery-powered trucks by September 2028. A portion of the funding — $3 billion — was pulled from President Joe Biden’s Inflation Reduction Act of 2022. However, the project’s slow pace has prompted lawmakers to seek a rollback of almost $1.3 billion that has yet to be spent.
“Biden’s multi-billion-dollar EV fleet for the USPS is lost in the mail and more than $1 billion is postmarked to order more,” Sen. Joni Ernst (R-Iowa) told The Post. “I am working to cancel the order and return the money to the sender, the American people. The rescissions package is a great start, but Congress must keep its foot on the pedal and make DOGE a lifestyle by stamping out waste like this on a regular basis.”
The troubled program changed hands earlier this year following the departure of Postmaster General Louis DeJoy. His successor, David Steiner, officially took over on Monday and now faces the uphill challenge of salvaging the faltering initiative.
Defense contractor Oshkosh, headquartered in Wisconsin, secured a $2.6 billion contract to build the fleet. Yet by November 2024, only 93 electric vehicles had been produced — far below the 3,000 originally expected by that point, according to a Washington Post report.
Production has been hindered by technical complications, including faulty airbag systems and problems uncovered during waterproofing tests. Engineers reportedly observed water gushing from the vehicles “as if [the vehicles’] oversize windows had been left open in a storm.”
In 2022, a senior Oshkosh manager tried to raise alarms with USPS about the ongoing issues but was prevented from doing so by company leadership.
“This is the bottom line: We don’t know how to make a damn truck,” a source involved in the process told The Washington Post.
Previously, Michigan-based Morgan Olson had attempted to win the USPS contract but lost the bid in early 2024. Sources say that in meetings with DeJoy and postal brass, the former postmaster general expressed concern over “a production plant in South Carolina,” widely believed to be the Oshkosh facility.
DeJoy was quoted as saying he was “in the parcel delivery business, not the vehicle manufacturing business,” according to someone present at the meeting.
At that time, Oshkosh’s Spartanburg plant was producing just one truck per day, though internal company projections had envisioned daily output reaching 80 units.
Each truck was estimated to cost roughly $77,692, based on Oshkosh’s figures for 28,195 EVs, the Washington Post reported.
In December 2023, USPS issued a request for suppliers capable of delivering at least 12,000 electric trucks by October 2025, and a minimum of 1,500 gas-powered vehicles beginning in October 2024.
An Oshkosh representative confirmed the company remains under contract with USPS but referred all detailed inquiries back to the postal agency.
“Modernization of the Postal Service’s delivery fleet is part of the organization’s $40 billion investment strategy to upgrade and improve the USPS processing, transportation, and delivery networks,” a USPS spokesperson said.
“The Postal Service has placed orders for 51,500 next generation delivery vehicles (NGDVs), of which 35,000 are Battery Electric Vehicles (BEV). More than 1,000 NGDVs have been received to date, of which more than 250 are BEV,” the spokesperson added.
“Additionally, the Postal Service has ordered 9,250 Ford E-Transit electric vehicles, of which nearly 8,000 have been received. Deployment continues to expand to sites across the country in accordance with the rollout of our new delivery network.”
The Biden administration’s stated goal was for USPS to exclusively purchase electric vehicles beginning in 2026. Whether that timeline remains feasible may depend on whether Republicans succeed in pulling back the remaining funds.
From the start, the switch to EVs — a centerpiece of Biden’s green energy platform — has been plagued with delays. Analysts warn the broader environmental incentives baked into the Inflation Reduction Act could end up costing taxpayers over $1 trillion over the next ten years.
The current initiative is supposed to replace a fleet of Grumman Long Life Vehicles dating back to 1987, which are noisy, fuel-inefficient, costly to maintain, and occasionally prone to catching fire.
Yet the handful of vehicles Oshkosh has managed to produce so far accounts for just a sliver of the planned 60,000 “Next Generation Delivery Vehicles,” which are to be a mix of electric and non-electric models.
A February 2025 review by the Government Accountability Office labeled USPS a “high risk” entity in terms of financial sustainability, noting the agency remains unable to fully meet its service obligations or financial commitments.
In recent months, President Trump has floated the idea of merging USPS with the Department of Commerce in light of the agency’s $9.5 billion loss for the 2024 fiscal year.
“[USPS has] been just a tremendous loser for this country, tremendous amounts of money they’ve lost,” the president told reporters in February.
“We want to have a post office that works well and doesn’t lose massive amounts of money, and we’re thinking about doing that, and will be a form of a merger, but it’ll remain the Postal Service, and I think it’ll operate a lot better than it has been over the years.”
With the 250th anniversary of the Postal Service approaching on July 26, David Steiner inherits a mammoth task — leading the agency into the future while its flagship electric vehicle program struggles to get into gear.
{Matzav.com}