USPS EV Transition Faces Cuts: Risks to Budget, Climate & Federal Modernization

  • Republican lawmakers are pushing to rescind or roll back key federal funding for the U.S. Postal Service’s EV rollout and, in some proposals, force the sale of EVs and charging infrastructure.
  • USPS plans to deploy about 66,000 EVs by 2028, but by mid-2025 deliveries include only about 250 battery-electric NGDVs and nearly 8,000 Ford E-Transit vans amid production delays.
  • GOP critics call the program wasteful and cite rising costs and cold-weather performance concerns, while USPS and contractors say early delays were expected in a complex ramp-up.
  • Reversing course could trigger costly contract and infrastructure losses and disrupt modernization and climate goals, though some rollback provisions have faced Senate Byrd Rule hurdles.
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The Postal Service’s EV initiative–centered around 45,000–66,000 Next Generation Delivery Vehicles (NGDVs) and electric vans to be delivered by 2028 – is under political pressure. Republicans are aggressively moving to strip out or rescind billions in funding, sell off assets, and unwind contracts. These attempts are being made both through reconciliation bills and specific legislative provisions that would force the asset divestment.

On the operational side, the rollout has underperformed relative to expectations. Though the plan was announced in 2022 to deploy at least 66,000 EVs by 2028, including 45,000 NGDVs and 9,250 E-Transit electric vans, only about 250 battery-electric NGDVs have been delivered as of mid-2025, alongside about 8,000 E-Transit vans. Delays with Oshkosh’s production, engineering problems, and cost overruns have been cited by critics.

The GOP’s narrative frames the program as wasteful amid fiscal constraints. Sen. Joni Ernst has labeled it a “textbook example of waste” and proposes rescinding the $3 billion IRA allocation meant to bridge EV and gas vehicle cost differences. Rep. Michael Cloud has also criticized alleged defects, delays, and rising costs. Meanwhile, USPS officials have defended the slow ramp-up as expected in a complex manufacturing rollout, noting that many assets and infrastructure are already installed and importantly matched to expected terrain and delivery profiles.

Strategically, undoing the program risks substantial financial damage from contract obligations, stranded infrastructure, and loss of efficiency gains from EVs. Deliverability of routes, particularly in cold climates, may suffer; emissions goals tied to the Postal Service modernization plan (“Deliver for America”) and broader federal climate targets could be thrown off course. Legally, provisions to force sale of specialized vehicles and rescind funding may face parliamentary or Byrd Rule barriers in the Senate.

Open questions remain: How much of the IRA funding has already been obligated or spent? What penalties or costs would USPS incur if forced to cancel or rescind contracts? Would sold EVs actually fetch market value? What is the reliability and total cost of ownership in cold climates over time? And how will this debate influence future federal fleet electrification programs?

Supporting Notes
  • USPS initially pledged in 2022 to deploy at least 66,000 electric vehicles by 2028 as part of its modernization and financial stabilization plan.
  • Of these, about 45,000 are NGDVs (Next Generation Delivery Vehicles) and 9,250 are Ford E-Transit electric vans.
  • By mid-2025 only ~250 battery-electric NGDVs have been delivered, and ~1,000 NGDVs of all types; nearly 8,000 E-Transit vans received out of orders placed.
  • Sen. Joni Ernst, R-Iowa, called the EV initiative “boondoggle” and “textbook example of waste,” citing delays, high costs, and concerns over performance in cold weather.
  • Rep. Michael Cloud says the project has “delivered nothing but delays, defective trucks, and skyrocketing costs.”
  • USPS warns that provisions requiring the sale of existing vehicles and infrastructure could cost at least $1.5 billion in replacement and infrastructure waste.
  • Senate parliamentarian blocked GOP provision in a tax-and-spending bill that would force USPS to sell EVs and revoke funding on grounds of violating the Byrd Rule.

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