U.S. Postal Service – 3 billion dollars for e-mobility

This strengthens the American government's efforts to encourage the U.S. Postal Service to use a larger share of electric vehicles in its new postal fleet.

The agency has the largest – and oldest – vehicle fleet in the country. Congress directed the Postal Service to place greater emphasis on electrification when purchasing new vehicles. This is supported by the 3 billion dollars made available to the agency under the Inflation Reduction Act. A spokesperson for the U.S. Postal Service confirmed the rumor that the agency's shopping list originally consisted mainly of gasoline-powered vehicles. Since the Democrats unexpectedly retained control of the Senate in the 2022 midterm elections, the Biden administration has used this opportunity to push for fleet electrification.

“The USPS plan leverages the 3 billion dollars provided by the Inflation Reduction Act to achieve the goal of 100 percent electric delivery vehicles by 2026 [and] sets the postal fleet on a path to electrification,” said John Podesta, senior advisor to President Joe Biden.

Pressure from Environmental Groups, Unions, and Members of Congress

In March, the Post initially ordered 50,000 vehicles from Oshkosh Defense, a Wisconsin-based company that had secured a 10-year contract worth up to $11 billion, including 10,000 electric vehicles. The American Post now announced that it would increase the number of EVs to 25,000 by purchasing commercial standard vehicles.

Following the passage of the Inflation Reduction Act, the silence of the Post regarding an increase in their electrification commitments sparked intensive lobbying by environmental groups. A joint lawsuit by the UAW (United Auto Workers) union and the Natural Resources Defense Council, as well as pressure from individual members of Congress, ultimately led to a change in thinking by the US Post.

Share of EVs to be Increased Again

The postal service will now increase its initial order of next-generation delivery vehicles to 60,000, of which 45,000 are expected to be electric by 2028. It is anticipated that all vehicles ordered by the agency after 2026 will be fully electric. Including the extra $3 billion approved, the agency expects to spend a total of $9.6 billion on its new fleet.

“The $3 billion provided by Congress has significantly reduced the risk associated with the accelerated implementation of a nationwide infrastructure for the electrification of our delivery fleet,” said U.S. Postmaster General Louis DeJoy. “We are grateful for the trust that Congress and the administration have placed in us to build and acquire what has the potential to become the largest electric vehicle fleet in the nation.”