'Dirty and dumb!' Trump may cancel major government contract

As part of President-elect Donald Trump's mission to roll back the Biden administration's climate policies, the Republican may cancel contracts to electrify the U.S. Postal Service's fleet, Reuters revealed Friday, citing unnamed sources familiar with transition team discussions.

"The sources told Reuters that Trump's transition team is now reviewing how it can unwind the Postal Service's multibillion-dollar contracts, including with Oshkosh and Ford for tens of thousands of battery-driven delivery trucks and charging stations," according to the news agency.

The USPS in December 2022 announced a five-year $9.6 billion investment that involved electrifying 75% of its next-generation delivery vehicles and installing modern charging infrastructure. That came just months after President Joe Biden signed the Inflation Reduction Act, which included $3 billion in funding for the endeavor.

Ford did not respond to Reuters' requests for comment on Friday, while Oshkosh said that it "is fully committed to our strong partnership with the USPS and looks forward to continuing to provide our postal carriers with reliable, safe, and sustainable modern delivery vehicles, even as USPS' needs continue to evolve."

The USPS also did not respond to requests for comment and Trump transition team spokesperson Karoline Leavitt declined to address his Postal Service plans, only saying that "President Trump will protect the freedom of Americans to drive whichever vehicle they choose, enhance his tough tariffs on Chinese-imported cars, and save the U.S. auto industry for generations to come. No policy should be deemed official unless it comes directly from President Trump."

During the campaign, Trump pledged to roll back Biden's climate policies if Big Oil poured $1 billion into getting him elected. He also attacked the Democrat's efforts to promote a shift to electric vehicles (EVs). Transportation accounts for the largest portion of all U.S. greenhouse gas emissions and the United States is the world's top historic emitter.

Even under Biden, U.S. plans to limit planet-heating pollution did not align with the country's contributions to the fossil fuel-driven climate emergency—but climate scientists and advocates widely backed his and later Vice President Kamala Harris' campaign leading up to last month's election, recognizing the threat posed by Trump.

John Hanger, a Democrat who previously held various envirnomental and energy positions in Pennsylvania's government, responded to the Reuters reporting on social media: "Ugh! Canceling contracts to electrify transportation of USPS would be dirty and dumb!"

Meanwhile, Scott Paul, president of the Alliance for American Manufacturing, said that "it's stuff like this that will cost us manufacturing jobs/opportunities."

Some critics also speculated whether such contracts may be redone to benefit Tesla. The company's CEO is Elon Musk, who is the richest man in the world, dumped around $270 million into super political action committees backing Trump's reelection bid, and is set to co-lead his forthcoming Department of Government Efficiency (DOGE) with fellow billionaire Vivek Ramaswamy.

Last month, Reuters reported on the Trump transition team's plans to kill Biden's fuel efficiency standards and a $7,500 consumer tax credit for EV purchases, which Musk was asked about while he and Ramaswamy were on Capitol Hill Thursday to meet with Republican lawmakers.

"I think we should get rid of all credits," Musk told reporters—despite his own company's reliance on Biden's EV policies.

Responding to Musk's comment in a Friday statement, Will Anderson, EV policy advocate with Public Citizen's Climate Program, said that "as someone who's asking to work for the American people through his so-called DOGE, Musk should not perpetuate crony capitalism that only benefits himself and others with access to Trump."

"If we want the American automobile industry to stay competitive in a global market," he added, "then not only should Musk recognize the benefit of the EV tax credit for American-made vehicles, but he should also recognize the negative impact billions of dollars in continuing oil and gas subsidies will have on a society that needs to transition to a zero-emission and clean-energy future."