U.S. Postmaster General Louis DeJoy on Tuesday reportedly said that he does not intend to return the funds designated for the purchase of electric delivery vehicles without legislation from Congress.
What Happened: The U.S. Congress gave the USPS $3 billion in 2023 to buy EVs and charging infrastructure. The federal agency is planning to buy around 66,000 electric vehicles by 2028.
However, last week, Reuters reported that President-elect Donald Trump‘s transition team is considering canceling the U.S. Postal Service's (USPS) contracts aimed at electrifying its delivery fleet including with Ford Motor Co. and Oshkosh.
However, DeJoy said at a U.S. House of Representatives hearing on Tuesday, as reported by Reuters, that the purchase of EVs makes business sense for the postal service and any change “has to be legislation.”
USPS did not immediately respond to Benzinga’s request for comment.
Why It Matters: USPS bought 28,000 vehicles this year of which 22,000 were powered by gas. In 2025, the USPS will increase the proportion of EVs purchased to 50-50, and starting in 2026, all next-generation delivery vehicles purchased are expected to be EVs, the report said.
Breaking the contracts USPS has with Ford and Oshkosh would be legally challenging, Reuters had previously noted, given that the federal agency has its own governing board.
Trump, meanwhile, during his election campaign, had said that he would roll back the Biden administration's push towards electrification.
Reuters previously reported that his transition team is also planning to kill $7500 in consumer tax credit on the purchase of electric vehicles.
Check out more of Benzinga’s Future Of Mobility coverage by following this link.
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Photo courtesy: USPS
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