A Republican-led initiative is taking aim at a key element of President Joe Biden’s electric vehicle (EV) agenda, as lawmakers in the DOGE Caucus push to rescind billions in funding earmarked for an underperforming U.S. Postal Service (USPS) electrification project.
Sen. Joni Ernst (R-IA) and Rep. Michael Cloud (R-TX) introduced the “Return to Sender Act” on Monday, a bill aimed at clawing back $3 billion from the Inflation Reduction Act (IRA) that was designated for the development of an electric postal fleet.
This legislative move comes after multiple reports exposed significant production delays, cost overruns, and quality concerns, leading critics to label the project as yet another example of Washington waste.
Biden’s USPS EV Plan Faces Major Setbacks
The USPS electrification initiative, originally billed as a major step in modernizing the agency’s aging fleet, has been riddled with problems since its inception.
Under the plan, defense contractor Oshkosh was slated to deliver 60,000 “Next Generation Delivery Vehicles” (NGDVs) over several years. However, the company has fallen drastically behind schedule, with production numbers far below expectations.
🚨 By November 2024, only 93 trucks had been delivered—a fraction of the 3,000 initially projected.
🚨 In December 2024, a Washington Post report revealed that some workers admitted they “don’t know how to build a damn truck.”
“This is the bottom line: We don’t know how to make a damn truck,” one person involved in production told The Post.
Republicans Slam the USPS EV Project as a “Billion-Dollar Boondoggle”
Sen. Joni Ernst, chair of the DOGE Caucus, did not hold back in her criticism of the USPS EV program:
“Biden’s EV postal fleet is lost in the mail,” Ernst said. “The order needs to be canceled with the unspent money returned to sender—the taxpayers. I am defunding this billion-dollar boondoggle to stamp out waste in Washington. Tax dollars should always be treated with first-class priority.”
Her House counterpart, Rep. Michael Cloud, echoed similar frustrations:
“This law funneled billions into a failed USPS EV project that has delivered nothing but delays, defective trucks, and skyrocketing costs,” Cloud told Fox News Digital, which first broke the story.
“Three years later, taxpayers are still waiting while the Postal Service refuses to provide basic transparency on where the money went.”
Ballooning Costs and Production Woes
Despite financial struggles, USPS agreed to pay more per truck after Oshkosh raised its prices. Under the revised deal:
🔺 Cost per EV truck surged to $77,692 for 28,000 vehicles—far exceeding initial projections.
🔺 USPS now faces growing scrutiny over where the money has gone and why production remains behind schedule.
Meanwhile, Oshkosh CEO John Pfeifer told investors last fall that the company was “really happy where we are” on the project—a statement now ringing hollow given the latest revelations.
USPS Defends Its EV Fleet Plans
Despite the backlash, USPS continues to stand by its EV transition plan, positioning it as a key component of the agency’s modernization strategy.
USPS spokesperson Kim Frum defended the agency’s efforts:
“From the start, USPS committed to purchasing the most environmentally sustainable vehicles across the organization’s entire fleet, consistent with financial and operational considerations.”
“Deliveries of new NGDVs to the Postal Service remain on track to the contracted schedule.”
However, given production failures, soaring costs, and missed deadlines, Republican lawmakers argue that it’s time to cut losses and return the unspent taxpayer funds.
Will the Bill Gain Traction?
With a Republican-controlled House and a narrowly divided Senate, the “Return to Sender Act” could gain momentum as GOP lawmakers escalate efforts to dismantle Biden’s climate policies.
📌 If passed, the bill would immediately eliminate any remaining federal funds allocated under these sections of the Inflation Reduction Act.
📌 The bill has already been read twice in the Senate and is now under committee review for further consideration.
As Republicans rally behind the proposal, the fate of Biden’s USPS EV program hangs in the balance—raising questions about the future of federal electric vehicle investments.