Donald Trump's transition team is reportedly considering canceling the United States Postal Service's (USPS) contracts to electrify its delivery fleet, as part of a broader set of executive actions targeting electric vehicles (EVs), according to three sources familiar with the plans.
The potential move, which could be announced soon after Trump’s inauguration on Jan. 20, aligns with his campaign promises to reverse President Joe Biden’s initiatives to decarbonize U.S. transportation as a means to combat climate change. Trump has characterized such measures as unnecessary and potentially harmful to economic growth.
Reuters previously reported that Trump is also planning to eliminate the $7,500 consumer tax credit for EV purchases and roll back Biden's stricter fuel-efficiency standards.
According to the sources, Trump’s team is examining ways to unwind USPS’s multibillion-dollar contracts with companies like Oshkosh Corp. and Ford, which are slated to supply tens of thousands of battery-powered delivery vehicles and charging infrastructure.
Shares of Oshkosh dropped about 5% to $105.65 following the news. Neither Oshkosh nor Ford responded to requests for comment.
In 2023, Congress allocated $3 billion to USPS as part of a $430 billion climate initiative to support EV purchases and charging infrastructure. The USPS plans to acquire approximately 66,000 EVs by 2028, creating one of the largest EV fleets in the country. Of these, Oshkosh is contracted to deliver around 45,000 vehicles, with the remainder sourced from other manufacturers like Ford. Siemens, ChargePoint, and Blink are providing the initial 14,000 charging stations, according to USPS.
As an independent federal agency with its own governing board, the USPS operates with significant autonomy, making it legally difficult to terminate these contracts. However, Trump's broader policy goals are expected to test the limits of executive authority on various issues, including federal spending and trade.
