U.S. Postmaster General Louis DeJoy is expected to implement a new strategic plan that includes higher postage costs and the elimination of prime postage levels, two sources familiar with the move, NBC News told NBC News on Friday.
The plan to eliminate high-quality mail, which includes letters, magazines, and catalogs, would slow down mail, which typically arrives within two days, and make delivery more expensive for consumers and businesses.
The Washington Post first reported this story.
The newspaper reported that all premium mail would be grouped into the same three to five day window as non-local mail. This is due to the fact that the postal service under DeJoy, a top donor to former President Donald Trump, has already noticed significant delays in mail delivery in recent months.
“Now is not the time to aggressively hike prices when so many companies are struggling and hanging by a thread,” said Hamilton Davison, president of the American Catalog Mailers Association.
Davison added that higher prices “will drive more mail out of the system and create a death spiral in the postal system”.
DeJoy’s plan may change before its official launch, a source warned.
The postal service has suffered annual losses for more than a decade. The agency announced a net financial loss of $ 9.2 billion last year.
The House Oversight Committee will hold a hearing with DeJoy and other USPS stakeholders on February 24th to “consider legislative proposals to put the postal service on a more sustainable financial footing,” the committee said in a statement.
Congressional Democrats and postal union leaders urge President Joe Biden to overhaul the governance of the postal service by filling four vacant seats on the board of governors. The executive committee has the authority to replace the postmaster general.
“Whoever the postmaster general is, we need a strong postal governor to set the policy and direction and we believe this is now available to the president to deal with quickly,” said Mark Diamondstein, president of the American Postal Workers Union .
The White House said in a statement Monday that Biden is focused on filling the vacancies on the board with candidates who “reflect his dedication to the staff of the US Postal Service – who fulfill the Post’s vital universal service obligation.”