President-elect Donald Trump‘s transition team is reportedly considering canceling the U.S. Postal Service’s (USPS) contracts aimed at electrifying its delivery fleet.
What Happened: The move could be unveiled in the starting days of Trump’s new administration, Reuters reported, citing multiple sources familiar with the matter.
The transition team is reviewing how it can undo the postal service’s multiple, expensive contracts including with Ford Motor Co (NYSE:F) and Oshkosh (NYSE:OSK) for battery electric delivery trucks, the report said. Breaking the contracts would be legally challenging, Reuters noted, given the federal agency has its governing board.
Benzinga has reached out to USPS, Ford, and Oshkosh for comment but is yet to receive a response.
Why It Matters: The U.S. Congress gave the USPS $3 billion in 2023 to buy EVs and charging infrastructure. The federal agency is planning to buy around 66,000 electric vehicles by 2028.
Trump, during his election campaign, had said that he would roll back the Biden administration’s push towards electrification.
Reuters previously reported that his transition team is also planning to kill $7500 in consumer tax credit on the purchase of electric vehicles.
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Photo courtesy: USPS
