Over the last few weeks not only is it a think was tasked, but he has been subject to character assassination as democrats put them in the cause hears of a hyperbolic false narrative perpetrated to gain political advantage. I hope we can stick to the facts today. One factor that needs to be highlighted is that the postmaster general is not appointed by president trump. The postal board of governors engaged in identified was the joy as an outstanding candidate with the necessary background and skill set to tackle the challenges facing the postal system. They unanimously approved his appointment. He reports to the board, not the president. , failingalse narrative to provide funding to the Postal Service will undermine the election. The Postal Service has 50. 1 billion in cash on hand following a better than expected performance during the pandemic. Tax delivery, in rather than being down, the Postal Service revenue is 1. 5 billion higher than during the same period last year. The longterm Financial Reality of the postal system is bleak and has been bleak for years. The main reason is first class mail volume has declined with the advent of the internet. Because the system is constrained by legislative requirements, it does not have the flexibility the private sector would have to deal with the reduction in the demand for its products. A perfect world, the Postal Service would have funded its healthcare care liabilities as they were incurring. Because they didnt, those liabilities now total 120 billion. Notpostal reform bill did ensure longterm financial viability and in its attempts to address the problem, the postal system was deleted of cache cash. Attempt at reform have proposed a taxpayer bailout. The cost of these proposals is understated based on the scoring requirement which miss ealing misleadingly proposes it will cost 10. 7 billion over 10 years. These proposals blacken a range of Structural Reforms that will be required to ensure the viability of the system. For years, Inspector Generals report recommended reform, and they have only been partially implemented. Is of the most costly this is that use and payment of overtime. The postmasterm began implementing shortly after his appointment. Therding to a report issued day the postmaster was sworn in, his office spent 4 billion in 2019 in Mail Processing and overtime costs. Those overtime costs represent 45 of the portal systems 8. 8 billion loss for last year. The postmasters attempts to reduce costs are being used to create this false narrative. According to democrats, the postmaster is trying to sabotage the postal system to disenfranchise voters. Sent before he was , ballot deadlines are being used as evidence of this Conspiracy Theory and the media is playing along. On average, the puzzle system delivered 2. 6 billion pieces of mail in 2019. Because of covid, the firstclass weekly volume is down 17 year to date. Even if every voter used mailin ballot in, they would be 150 million pieces of mail or 6 weekly volume. The postal system has more than enough excess capacity to handle alien balloting. I want to thank the postmaster for his appearance today, for his service, and i look forward to your testimony. Thank you, mr. Chairman. Mr. Dejoy, i appreciate you joining us. We have a lot of questions for you. We are in the middle of unprecedented pandemic, we are experiencing one of the nations worst health and Economic Crises , now we are facing a male crisis and we are months away from an election where we expect record numbers of americans to vote by mail. For many communities across the country, the Postal Service has always been a lifeline. Especially for the communities where private carriers dont deliver. Whether folks are receiving medications, financial documents, home supplies, or trying to stay in touch with their loved ones, the Postal Service has always delivered. I dont think you have, you have not delivered in this tenure so far. For more than two centuries, americans have been able to count on the Postal Service but in less than two months as postmaster general, you have undermined one of our nations and trusted institutions wreak havoc on families, on veterans, seniors, rural communities, and people all across our country. The operational changes you implemented without consulting with your customers or the public have caused significant delays, delays that have hurt people across the nation, delays that come at a time when people depend on Reliable Service now more than ever. In july, i started hearing reports about how severely your changes were slowing down the mail. Answers but it wasnt until i launched an investigation that you admitted that you had directed these changes yourself. Despite multiple requests, it took more than one month to respond directly. I am still not satisfied with those explanations. You have brushed off these delays, calling them inevitable, the side effect of your vision for the Postal Service, but let me tell you about the people are forced to bear the brunt of your decisions. For aom michigan Works Company that produces educational materials, that Company Started seeing delivery problems and switched to overnight shipping, which is almost double their shipping cost, and between these delays and the pandemic, they have had to lay off multiple employees to absorb these costs. Mary from redford said her daughter has been getting her epilepsy medication through the mail, usually in three to four days, but because of changes, her latest refill shipped on july 20 and it took nine days to be delivered. When marys daughter realize the medication was not going to arrive on time, she tried to ration what few pills she had left and as a result, she suffered seizures and was transported to a hospital. These are just a few of my constituents who shared their stories as part of my investigation. I have received more than 7500 report of delays from people across michigan and across the country in just two weeks. They have written about skipping theirof medication and Small Business is losing customers or having to lay off employees. All because of changes that you have directed. Mr. Chairman, i moved to enter into the record an update on what might dictation is finding. Without objection. Mr. Dejoy, your decisions have cost americans their health, their time, their livelihoods, and their peace of mind. I believe you owe them an apology for the harm you have caused, and all of us some very clear answers today. The country is anxious about whether the damage you have inflicted can be reversed and what other plans you have in store which could further disrupt liability and Timely Delivery of the Postal Service. If you plan to continue pursuing these kinds of changes, i think my colleagues and many of our constituents will continue to question whether you are the right person to lead this indispensable institution. Thank you. It is the tradition of this committee to swear in witnesses. Mr. Dejoy, raise your right hand. Do you swear the testimony you give will be the truth, the whole truth, and nothing but the truth, so help you god . Postmaster dejoy i do. Thank you. Mr. Dejoy has served as postmaster general, and you spent more than 35 years developing and managing a successful nationwide Logistics Company as chairman and ceo of new breeze logistics. Beginning in 2014, mr. Dejoy served as the ceo of Xpo Logistics and after his retirement in 2015, he joined the companys board of directors where he served until 2018. Mr. Dejoy. Postmaster dejoy good morning, chairman, Ranking Member peters, and members of the committee. Thank you chairman johnson for calling this hearing. I am proud to be with you on behalf of the women and men of the United StatesPostal Service. On june 15, i became the 75th postmaster general. I did so because i believe the Postal Service plays a positive role in the lives of the American Public and life of the nation. I also welcome the opportunity to lead this organization because i believe theres an opportunity for the Postal Service to better serve the American Public and also to operate in a financially sustainable manner. Congress established the Postal Service to fulfill a Public Service mission to provide prompt, reliable, and universal Postal Services to the American Public in an efficient and financially sustainable fashion. Our ability to fulfill that mandate in the coming years is that fundamental risk. Changes must be made to ensure our sustainability for the years and decades ahead. Our business model, established by congress, requires us to pay our bills through our own efforts. I view it as my personal obligation to put the organization in the position to fulfill that mandate. With action from congress and our regulator, a significant effort by the Postal Service, we can achieve this goal. This year, the Postal Service will likely report a loss of more than 9 billion. Without change, our losses will increase in the years to come. It is vital that Congress Enact reform legislation that addresses the unaffordable retirement payments, most importantly, Congress Must allow the Postal Service to integrate a retiring Health Benefits program with medicare, which is a common sense practice followed by all businesses that still offer Retiree Health care. It also must rationalize our Pension Funding payments. Legislative actions have been discussed and debated for years but no action has been taken. I urge congress to enact these reforms. I also urge the congress to enact legislation that would require Financial Relief to account for the impacts of the covid19 pandemic on our financial condition. The Postal Regulatory Commission began a mandated review about the Pricing System four years ago. It has been three years since the commission concluded our Current System is not working. We urgently require the prc to do its job in establishing more rational regulatory systems for our mail products. When the congress and p. R. C. Fulfills its obligation to the American Public concerning the Postal Service, im sure that much of our 80 billion in punitive losses since 2007 could be avoided and our operation will not be in such jeopardy. The Postal Service must also do its part, we must adapt to the reality of our marketplace, generate more revenue, and control our costs. I believe we can chart a path that accomplishes these goals. In my 67 days as postmaster general, i have had the chance to observe the many hidden strengths of the organization and appreciate our Critical Mission to the American Public. Despite these longstanding financial problems, there is a strong base to build on, and a tremendous desire of the public for the Postal Service to succeed. As we head to the election season, i want to assure this committee and the American Public that the Postal Service is committed to delivering election mail on time. The sacred duty is our number one priority between now and election day. Mr. Chairman, women and men of the Postal Service have demonstrated extraordinary commitment to our mission throughout the covid19 pandemic. We continue to work to keep our employees and customers safe as we fulfill our essential role of delivering medications, benefit checks, and Financial Statements the public depends on. Since the beginning of the pandemic, there has been a public out ordering of support postal employees as they perform their essential service. This is a welldeserved testament to their dedication. Mr. Chairman, Ranking Member peters, i look forward to working with you to restore the Financial Health of the Postal Service and improve the way we serve the American Public. I welcome any questions that you and the committee may have. Chairman johnson thank you for that Opening Statement. I want to go through and give you a chance to respond to the false narratives. Lets talk about the election notices sent out by the Postal Services general counsel, one notice that began before you assumed your duties. Talk about what that notice was about and how important it was that the Postal Service does inform Election Officials of what your capabilities are so they can factor that into their deadlines. Postmaster dejoy thank you for the opportunity to about this. First, i would like to emphasize that there has been no changes in any policies with regard to election mail for the 2020 election. As you have stated, this letter was sent out before my arrival, simply to help educate state election boards, and eventually the American People to eventually make this a broader statement, so the American People are aware of how to successfully vote. This letter, similar letter was sent out in the 2016 election by the former deputy postmaster general. We recognize that during this pandemic, when i arrived, there was great concern about the increase in volume and we emphasized the interaction. We had over 50,000 contacts before my arrival with state election boards to help them understand the Mail Processing procedures of the Postal Service. Since my arrival, we have established and expanded a task force. We have put up a website, we are putting up a website, and we are working to ensure the American Public has a successful election. Chairman johnson in my Opening Statement, i remarked that 150 million pieces of ballots, about 6 of weekly volume, in your written testimony, you said in you said what is expected, about 2 . Can you assure the American Public in this committee that the postal system has more than enough capacity to handle the number of ballots . Its really a matter of Election Officials understanding what delivery capabilities are . Postmaster dejoy we delivered 433 million pieces of mail a day. 150 million ballots, 160 million ballots over the course of the week is a very small amount. Adequate capacity. Mail volume is down 14 this year. Plus, as i identified earlier in the week, we will have Additional Resources on standby. If everyone complies with the mail process that we have been identifying, there will be absolutely no issue. There is slack in the system and additional processes in and around the election that will carry a good part of any deviations. The Postal Service stands ready and the board of directors stands ready with the expansion of the task force that i have identified earlier in the week. Yesterday, we made the decision to establish a broad, bipartisan Board Committee to interact with us as we move forward. We are very comfortable that we will achieve this mission. Chairman johnson something that i think has been blown out of proportion is the retirement of some of the blue boxes. Can you speak to how that is a normal procedure . First class mail has been down over the decades, the volume almost cut in half. Anytime you have a business where your volume is declining that dramatically, you start to take out different capacities. Can you address the issue of the normal retirements and what the history of that has been not only of the blue boxes but the sorting machines . Postmaster dejoy thank you for the opportunity to speak about that. Today, theres about 140,000 collection boxes in the United States. Over the last 10 years, it averaged about 3500 35,000 of them have been removed. Its a datadriven method, i have not reviewed it. Every year, they look at utilization of both boxes, look at where they place new boxes, where communities grow. 35,000 over 10 years, since my arrival, we have removed 700 collection boxes, of which i had no idea that that was the process