Exclusive: According to reports, Trump may terminate the US Postal Service’s contract for electric mail trucks

Three people familiar with the plans said that as part of a larger set of executive orders aimed at electric vehicles, Donald Trump’s transition team is thinking of terminating the USPS’s contracts to electrify its delivery fleet.

Trump has pledged during his campaign to reverse President Joe Biden’s efforts to decarbonize U.S. transportation in order to combat climate change. Trump has claimed that this agenda is needless and could have negative economic effects. The move could be announced during the first few days of his administration, which starts on January 20.

Reuters has previously reported that Trump intends to repeal U.S. President Joe Biden’s more stringent fuel-efficiency regulations and eliminate a $7,500 consumer tax credit for the purchase of electric vehicles.

Trump’s transition team is currently examining how to terminate the postal service’s multi-billion dollar contracts, with Oshkosh Corp (OSK.N), opens new tab, and Ford (F.N), opens new tab, for tens of thousands of battery-powered delivery trucks and charging stations, the sources told Reuters.

Requests for comment were not answered by Oshkosh or Ford.

In 2023, USPS received $3 billion from Congress as part of a $430 billion climate deal to purchase electric vehicles and infrastructure for charging them. In order to create one of the biggest fleets of electric vehicles in the country by 2028, it intends to purchase about 66,000 of them.

The United States Postal Service estimates that Oshkosh will send roughly 45,000 electric vehicles as part of that, with the remainder coming from mainstream automakers like Ford. The United States Postal Service reports that Siemens, ChargePoint, and Blink are providing the first shipment of 14,000 chargers.

Trump is anticipated to push the limits of executive authority on a variety of topics, from trade to federal spending, but it will be difficult to legally terminate the contract because the USPS is an independent federal agency with its own governing board.

Requests for comment were not answered by the USPS.
Regarding preparations for the USPS contract, Trump’s team refrained from making direct comments.

“President Trump will uphold Americans’ right to drive any kind of vehicle, strengthen his strict tariffs on cars imported from China, and preserve the American auto industry for future generations.” “Unless it comes directly from President Trump, no policy should be considered official,” said Karoline Leavitt, a spokesperson for the Trump transition team.

Biden announced in an executive order on EVs in 2021 that 50% of all new light trucks and passenger automobiles would be zero-emission vehicles. Biden gave different government agencies instructions to develop new fuel and emission standards that would hasten the adoption of electric vehicles in order to accomplish that aim.