USPS invests $3 billion in new electric truck fleet

The United States Postal Service (USPS) is investing $9.6 billion in a new fleet of delivery vehicles, with $3 billion allocated from the Inflation Reduction Act. This investment includes the purchase of 106,000 new delivery vehicles by 2028, of which 60,000 will be Next Generation Delivery Vehicles (NGDVs). The initial order of 50,000 NGDVs, valued at $2.98 billion, was awarded to Oshkosh Defense in 2021. These vehicles will replace the aging Grumman Long Life Vehicle, which has been in service since 1987. Postmaster General Louis DeJoy initially planned for only 10% of the new vehicles to be electric. However, following legal challenges from multiple states and environmental organizations, this percentage was increased to over 50% by July 2022. The shift towards electric vehicles is significant, as they are approximately 17% more expensive than traditional internal combustion engine vehicles, raising the total contract value to around $3.31 billion. The new NGDVs will feature modern safety enhancements such as airbags, anti-lock brakes, and collision sensors, which were absent in the older models. The average price per NGDV is estimated to be $66,200, which is higher than the MSRP of comparable vehicles like the 2025 Mercedes-Benz e-Sprinter. This raises concerns about the financial implications of the USPS's vehicle modernization efforts. As USPS continues to transition to a more environmentally friendly fleet, the scrutiny over the funding and management of this investment remains critical. The reliance on taxpayer money for a significant portion of this project has led to public debate regarding the effectiveness and necessity of such expenditures.