The White House refused to say this week whether the Trump administration will cancel a Biden-era electric vehicle program that has proven costly, slow, and wasteful for a postal service hemorrhaging money. Reports indicate the U.S. Postal Service (USPS) may run out of money by 2027 if nothing changes.
Electric vehicles, especially load-bearing ones that have to travel many miles, cost more, wear out faster, are more environmentally hazardous, and are less reliable than gas-powered trucks. In March 2021, USPS placed an order with Oshkosh to deliver a minimum of 50,000 vehicles, both electric and gas-powered, by 2027. An industry professional tells The Federalist only 15 percent of those vehicles have been delivered as of April.
In 2023, Congress directed roughly $3 billion in taxpayer funds from the Inflation Reduction Act to USPS to electrify its fleet. According to a November 2024 Washington Post report, only 93 out of the expected 3,000 vehicles from that appropriation had been delivered then.
“We don’t know how to make a d-mn truck,” one person involved in production told the Washington Post. The multi-year upgrade, expected to cost around $9.6 billion, comes as the USPS rapidly loses money due largely to pension obligations and declining mail volume. The net loss for the postal service in 2025 was around $9 billion, causing the postmaster general to sound the alarm.
“I am not sure that the American public is aware that the postal service is at a critical juncture,” Postmaster General David Steiner said in a written statement. Steiner told Congress that, at the current rate, “if we continue to pay our required obligations in the same manner as we have done in recent years, then we will be out of cash in less than 12 months.”
The postal service will not be able to deliver mail soon unless Congress provides additional funding, according to Steiner. Some officials are more hopeful, but still say the situation is dire. Vice Chairman of the Postal Regulatory Commission Robert Taub told a U.S. house subcommittee that he believes the postal service has several years before running out of money, but that “we cannot leave it up to the postal service to save itself.”
The USPS has made cuts to increase the time it has before funds run out. The postal service suspended non-essential spending on travel, office supplies, and consultants in late May. Still, the costly electric vehicle program continues to run.
Although Trump has promised to address waste and abuse in the federal government, including the postal service, his administration has not dealt with this program. After Trump was elected to a second term, Reuters reported the administration was interested in cancelling USPS contracts to build the EV fleet. The Trump administration has decreased EV-related funding in other areas, but not in this one — yet.
The Federalist asked the White House if the administration is planning to cancel or rethink this EV program. In response, a White House spokesman said: “President Trump pledged to slash waste, fraud, and abuse across the federal government. The Trump administration continues to work with the USPS to most effectively and efficiently deliver for the American people.”
However, the White House did not address the Federalist’s questions. When pressed in a follow-up email to address specific inquiries, the White House did not respond. Oshkosh did not respond to a request for comment.
