The U.S. Postal Service unveiled two battery-powered vehicles at an event announcing its electric vehicle plans on December 20, 2022, at Postal Service Headquarters in Washington, DC.
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Donald Trump‘s transition team is considering canceling U.S. Postal Service contract Electrifying its delivery fleetas part of a broader executive order Targeting electric vehiclesThat’s according to three Reuters sources familiar with the plan.
The move, which could be announced early in Trump’s administration on January 20, would be in line with Trump’s campaign promise to overturn the presidency. Joe Biden’s effort Decarbonizing U.S. transportation Fighting climate change – Trump says this agenda is unnecessary and could harm the economy.
Reuters previously reported that Trump Plan to eliminate $7,500 consumer tax credit Buy electric cars and plan to roll back Biden’s stricter fuel efficiency standards.
Sources told Reuters that Trump’s transition team is currently reviewing how to unwind billions of dollars in contracts with the Postal Service, including with Oshkosh Corporation and Fordserving tens of thousands of battery-powered delivery trucks and charging stations.
After the Reuters report, Oshkosh shares fell about 5% to $105.65 per share.
Oshkosh and Ford did not respond to requests for comment.
In 2023, Congress allocated $3 billion to the U.S. Postal Service as part of the $430 billion climate bill to purchase electric vehicles and charging infrastructure. The company plans to purchase approximately 66,000 electric vehicles by 2028, creating one of the largest electric fleets in the country.
As part of the effort, Oshkosh expects to deliver about 45,000 electric vehicles, with the remainder coming from mainstream automakers such as Ford, according to the U.S. Postal Service. According to the USPS, the first batch of 14,000 chargers will be supplied by Siemens, ChargePoint and Blink.
The Postal Service is an autonomous federal agency with its own governing board, making cutting off the contract legally challenging, but Trump’s stated policy goals are poised to test the boundaries of executive power on a range of issues from trade to federal spending .
The U.S. Postal Service did not respond to a request for comment.
Trump’s team has not commented directly on plans for the USPS contract.
“President Trump will protect Americans’ freedom to drive the vehicle of their choice, increase tough tariffs on imported cars from China, and save the U.S. auto industry for generations to come. No policy should be viewed as such unless it comes directly from President Trump Formal policy,” Trump transition team spokesperson Carolyn Leavitt said in a statement.
In 2021, Biden issued an executive order on electric vehicles, announcing that 50% of all new passenger cars and light trucks will be zero-emission vehicles. To achieve this goal, Biden directed various federal agencies to develop new emissions and fuel standards rules aimed at accelerating the adoption of electric vehicles.
