Biden’s Electric Mail Truck Plan: A Costly Failure

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Jul 21, 2025

Biden's $10B plan to electrify USPS trucks has delivered just 250 vehicles. What went wrong with this massive project, and what does it mean for taxpayers? Click to find out.

Financial market analysis from 21/07/2025. Market conditions may have changed since publication.

Have you ever watched a grand plan unravel before it even gets off the ground? That’s exactly what’s happened with the Biden administration’s ambitious push to electrify the U.S. Postal Service’s delivery fleet. A project that promised to revolutionize mail delivery with eco-friendly trucks has, instead, become a symbol of inefficiency and wasted taxpayer dollars. Let’s dive into why this $10 billion initiative has delivered so little and what it means for the future of government-led modernization.

The Promise of a Greener Postal Service

The idea was bold: transform the U.S. Postal Service (USPS) by replacing its aging, gas-guzzling delivery vans with a sleek, electric vehicle fleet. Announced as part of President Biden’s broader green energy agenda, the plan aimed to roll out 35,000 battery-powered mail trucks by 2028. Backed by $3 billion from the 2022 Inflation Reduction Act, it was sold as a win for the environment and a step toward modernizing an agency struggling to stay relevant. But as I’ve often seen with grand government schemes, the devil is in the execution.

The USPS, tasked with delivering mail to every corner of America, relies on a fleet of over 200,000 vehicles, many of which are decades old. These Grumman Long Life Vehicles, built in the 1980s, are noisy, inefficient, and prone to breakdowns—some even catch fire. Replacing them with electric trucks seemed like a no-brainer. Who wouldn’t want quieter, cleaner, and more reliable mail delivery? Yet, as we’ll see, ambition doesn’t always translate to results.


A Stalled Rollout: Where Are the Trucks?

More than two years into the project, the results are, frankly, embarrassing. Out of the 35,000 electric mail trucks promised, only about 250 have been delivered as of late 2024. That’s less than 1% of the target, despite $1.7 billion already spent. To put that in perspective, each of those 250 trucks effectively cost taxpayers about $6.8 million. I don’t know about you, but that sounds like a pretty steep price for a mail truck.

The bottom line is, we’re struggling to produce these vehicles at scale.

– Industry insider

The primary contractor, a Wisconsin-based manufacturer, was tasked with building these Next Generation Delivery Vehicles (NGDVs). They secured a $2.6 billion contract to deliver thousands of trucks, but production has been painfully slow. Reports indicate the factory is churning out just one truck per day—far below the projected 80. Engineering hiccups, like faulty airbags and leaking frames, have plagued the process. Water pouring out of trucks during testing? That’s not exactly the cutting-edge innovation taxpayers were promised.

Perhaps the most frustrating part is that warnings about these issues were ignored. Insiders claim that as early as 2022, concerns about production delays were raised but brushed aside by higher-ups. It’s a classic case of bureaucracy stifling reality, and it’s left the USPS with a fraction of the fleet it expected.


The Price of Ambition: Financial Fallout

Let’s talk numbers. The project’s total budget is nearly $10 billion, with $3 billion coming from the Inflation Reduction Act and the rest from USPS funds. Each electric truck costs about $77,692, which might sound reasonable until you realize the scale of the shortfall. With only 250 trucks delivered, the cost-effectiveness of this initiative is laughable. Meanwhile, the USPS reported a staggering $9.5 billion loss in fiscal year 2024, raising questions about its ability to fund this or any modernization effort.

Project ComponentPlannedDeliveredCost
Electric NGDVs35,000250$2.6B contract
Ford E-Transit EVs9,250~8,000Part of $10B budget
Total Budget$10B$1.7B spentHigh risk

The financial strain doesn’t stop there. The Government Accountability Office flagged the USPS as “high risk” in early 2025, citing its inability to cover operational costs. With losses mounting and the electric truck program faltering, critics argue the funds could be better spent elsewhere—like fixing the postal service’s core operations.

This is a textbook example of government overreach wasting taxpayer money.

– Congressional critic

Some lawmakers are now pushing to cancel the remaining $1.3 billion in funding, arguing that the project is a boondoggle—a term I’d say fits like a glove. In my view, redirecting those funds to stabilize the USPS’s finances or invest in proven technologies might be the smarter move.


Why Did It Go Wrong?

So, what turned this green dream into a logistical nightmare? For starters, the project underestimated the complexity of building electric delivery vehicles at scale. Unlike passenger EVs, these trucks need to withstand grueling daily routes, extreme weather, and constant stop-and-go driving. Engineering a vehicle that meets those demands while staying cost-effective is no small feat.

  • Production bottlenecks: Factories struggled to ramp up output, with only one truck produced daily.
  • Engineering failures: Issues like airbag malfunctions and water leaks derailed progress.
  • Bureaucratic inertia: Warnings about delays were ignored, slowing response times.

Then there’s the question of leadership. The USPS leadership distanced itself from the manufacturing side, with one official reportedly saying they’re in the business of delivering mail, not building trucks. Fair enough, but shouldn’t someone have been overseeing this multi-billion-dollar project? It’s hard not to feel that a lack of accountability played a big role.

Maybe the most intriguing aspect is how this project reflects broader challenges with government-led initiatives. Ambitious goals are great, but without realistic timelines, robust oversight, and flexible planning, they can crumble under their own weight. I’ve seen this pattern before—big promises, bigger budgets, and results that don’t measure up.


A Glimmer of Progress?

It’s not all doom and gloom. The USPS did manage to acquire nearly 8,000 Ford E-Transit electric vans, which are already in use. These off-the-shelf vehicles have been easier to integrate than the custom-built NGDVs, offering a small win for the program. But with the broader goal of a fully electric fleet by 2026 looking increasingly unrealistic, the USPS faces tough choices.

Should they double down on the troubled NGDV program? Pivot to more reliable, existing EV models? Or scale back the electric ambitions entirely? These are questions the new Postmaster General, appointed in July 2025, will need to tackle as the USPS nears its 250th anniversary.

Modernizing the postal service is critical, but it has to be done right.

– Postal service spokesperson

The Ford vans show that progress is possible, but they also highlight the gap between what’s achievable and what was promised. Scaling up from 8,000 vans to a fully electric fleet of tens of thousands is a leap that requires more than just funding—it demands precision and adaptability.


What’s Next for the USPS?

The electric truck debacle is just one piece of a larger puzzle for the USPS. With annual losses in the billions and an aging infrastructure, the agency is at a crossroads. Some, including former President Trump, have floated radical ideas like merging the USPS with another federal department to streamline operations. Others argue for privatization or a complete overhaul of its business model.

  1. Reassess priorities: Focus on stabilizing finances before chasing ambitious projects.
  2. Improve oversight: Ensure future initiatives have clear accountability.
  3. Leverage existing tech: Use proven EV models to avoid production risks.

In my opinion, the USPS needs to take a step back and focus on what it does best: delivering mail reliably. Fancy electric trucks are great, but if they can’t be built on time or on budget, they’re little more than a shiny distraction. The new leadership has a chance to reset expectations and deliver results that actually serve the American public.


Lessons for Taxpayers and Policymakers

This isn’t just a story about mail trucks—it’s a cautionary tale about the risks of overpromising and underdelivering. Government projects, especially those tied to emerging technologies like electric vehicles, need rigorous planning and realistic goals. Here are a few takeaways I’ve pieced together:

  • Start small: Pilot programs can test feasibility before committing billions.
  • Listen to warnings: Ignoring red flags only deepens the mess.
  • Prioritize accountability: Clear oversight prevents projects from spiraling.

Taxpayers deserve better than to see their money poured into projects that don’t deliver. Maybe the most sobering lesson is that good intentions—like greening the postal fleet—aren’t enough without a solid plan. As the USPS approaches its milestone anniversary, it’s a chance to reflect on what modernization really means.

So, what do you think? Should the USPS keep pushing for an all-electric fleet, or is it time to cut losses and focus on core services? One thing’s clear: the road to modernization is bumpier than anyone expected.


The Bigger Picture: Government and Innovation

Zooming out, the USPS’s electric truck saga is a microcosm of the challenges facing government-led innovation. Ambitious projects often come with big price tags and even bigger risks. When I think about other high-profile flops—like certain infrastructure projects or tech initiatives—it’s clear that execution matters as much as vision.

The push for sustainability is critical, but it can’t come at the expense of practicality. Electric vehicles are the future, no doubt, but forcing them into a system that’s not ready can do more harm than good. For the USPS, the focus should be on balancing green goals with the reality of its financial and operational constraints.

Innovation without execution is just a dream.

– Business analyst

As we look ahead, the USPS’s struggle with its electric fleet serves as a reminder: big ideas need solid foundations. Whether it’s mail trucks or any other public project, success hinges on planning, adaptability, and a willingness to learn from mistakes.

The electric mail truck program may have stalled, but it’s not the end of the road. With the right adjustments, the USPS could still turn things around. For now, though, it’s a stark lesson in what happens when ambition outpaces reality.

You are as rich as what you value.
— Hebrew Proverb
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Steven Soarez passionately shares his financial expertise to help everyone better understand and master investing. Contact us for collaboration opportunities or sponsored article inquiries.

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