Cutting off contracts the Postal Service receives during a Biden presidency could create legal challenges for the Trump administration
19 hours ago
- Last year, Congress provided $3 billion to the USPS to electrify its vehicles and install 14,000 chargers.
- Ford and Oshkosh plan to deliver thousands of electric vehicles to the U.S. Postal Service over the next few years.
- Some analysts predict Trump will push to add more ICE vehicles to the new USPS fleet.
As Donald Trump prepares to return to the Oval Office next month, the electrification of the U.S. Postal Service’s (USPS) fleet is in the spotlight. Reports suggest the incoming administration may consider canceling a multibillion-dollar electric vehicle contract, potentially undermining years of progress in modernizing and decarbonizing the U.S. Postal Service’s aging delivery trucks.
Trump’s transition team is exploring ways to cancel key postal electric vehicle programs, including contracts with Ford and Oshkosh, Reuters reported, citing unnamed sources. Trump is likely to announce a plan soon after becoming president, and if he does try to end the rollout of electric delivery trucks, it could be one of many moves by the current Biden administration to unwind decarbonization efforts.
READ: Ford, GM, Stellantis, Toyota plead with Trump not to cut EV tax credits
In early 2021, Oshkosh was awarded a contract to supply next-generation delivery vehicles to the USPS, with an initial goal of assembling 50,000 to 165,000 electric vehicles over 10 years. Congress is providing the USPS $3 billion in 2023 to purchase 66,000 electric vehicles, about 45,000 of which are currently expected to come from Oshkosh, while others will come from well-known brands including Ford.
Exiting an EV investment isn’t easy
Reuters noted that terminating the Postal Service’s contracts with Oshkosh and Ford could be challenging because it is an autonomous federal agency with a governing body. Oshkosh said in a statement, “We are fully committed to our strong partnership with the USPS and look forward to continuing to provide our postal carriers with reliable, safe and sustainable modern delivery vehicles, even as USPS demands Constantly changing.”
Analysts at investment banking firm Jefferies believe the Trump administration will not cancel the contract entirely but may push for fewer electric vehicles and more vehicles powered by internal combustion engines. “Given the need to replace aging equipment, we believe the USPS will receive new vehicles in 2025. The mix of this order may change to appease a government that is more hostile to electric vehicles,” the analysts wrote.
The USPS electrification plan isn’t just about trucks, it’s also about deploying 14,000 electric vehicle chargers across the country. The chargers, from Siemens, Rexel/ChargePoint and Blink, are designed to support wider fleet transformation. It’s unclear whether the Trump administration will interfere with the rollout of this infrastructure, but any disruption could further complicate the Postal Service’s electric vehicle ambitions.
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