Postal service

Biden ousts Postal Service chairman with new board nominees — Here’s why it’s bad news for Louis DeJoy

Topline

President Joe Biden announcement Friday, two new candidates for the board of governors of the US Postal Service and will not reappoint the current chairman of the board, Ron Bloom, a Democrat, removing a key ally of the controversial Postmaster General Louis DeJoy, whose ousting might now be easier with Bloom off the board.

Highlights

Biden named Daniel Tangherlini and Derek Kan to the board to replace Bloom and Republican board member John Barger, respectively, whose terms expired in October.

Biden’s decision to nominate Tangherlini rather than reappoint Bloom comes after several Democratic senators said they would oppose any effort to retain Bloom, and sources cited by the Washington Post, who first reported the news, said the move “casts doubt” on DeJoy’s continued tenure as postmaster general.

Bloom has been criticized for his vocal support of DeJoy and the recent 10-year plan he imposed on the USPS – which slowed down some couriers – and also raised ethical issues after the To post reported that DeJoy purchased $300,000 worth of bonds from Bloom’s investment firm.

Tangherlini was previously a director in the General Services Administration, while Kan, a Republican, is an executive at e-commerce startup Deliverr who previously held positions at Lyft, Amtrak and as deputy director of the Office of Management. and budget.

The USPS board had already reappointed Bloom as chairman at its last meeting earlier this month, which some Biden-appointed members objected to at the meeting, saying it was premature. with the expiration of his term.

Biden’s new nominees could potentially be more willing to vote against DeJoy, who can only be ousted by a majority vote of the nine-person board of governors, after the president already named three board members earlier this year who are expected to oppose him.

crucial quote

Rep. Carolyn Maloney (DN.Y.), who chairs the House Oversight Committee that oversees the USPS, said in a statement Friday that she “strongly supports” Tangherlini’s nomination, affirming his “years of experience in public service and management in various federal agencies. . makes him well positioned to help get the Postal Service back on track.” I hope that Mr. Tangherlini, along with the rest of the Board of Governors, will begin to hold the Postmaster General responsible for damage to the operations and credibility of the Postal Service,” Maloney said.

To monitor

Tangherlini and Kan will now need to be confirmed by the Senate before they can officially serve on the Postal Service’s board of directors. Bloom and Barger will continue to serve on the board until their terms officially expire on Dec. 8 and Dec. 22, respectively, unless their successors are confirmed before then.

Key Context

Democratic lawmakers and others have been pushing for DeJoy’s ouster for more than a year now, since the postmaster general — a longtime GOP fundraiser — sparked widespread controversy for imposing new changes at the USPS that caused widespread mail delays. Although these changes have since been reversed, the Postmaster General has continued to be a controversial figure, including for the prosecution mail delays to USPS and DeJoy’s financial interests in companies that do business with the agency (USPS says DeJoy recused himself from all matters that might be in conflict and ceded certain investments). It has also come under greater scrutiny in recent months after DeJoy’s new 10-year strategic plan took effect Oct. 1, which the regulatory board overseeing the USPS criticized and 20 attorneys general criticized. filed a complaint. trial to block. Democratic lawmakers pressured Biden to replace Bloom to help oust DeJoy, and 77 public interest groups urged Biden in a recent letter not to rename Bloom. “I sincerely hope that you will use this vacancy on the Board of Governors in December to appoint a qualified replacement who can improve the USPS for its customers – the American people,” Rep. Raja Krishnamoorthi (D-Ill.) wrote. letter to the president.

Further reading

Biden is expected to replace Ron Bloom, chairman of the USPS board and key DeJoy ally, on the postal board (Washington Post)

DeJoy bought up to $305,000 in bonds from the USPS Chairman’s Investment Company (Washington Post)

Postal Services Commission is now run by a Democrat, but Louis DeJoy still won’t be fired (Forbes)

‘Get used to me’: Louis DeJoy says he has no plans to quit the Postal Service (Forbes)