Oshkosh USPS electric mail carrier (Source: Oshkosh)
The Senate version of the repubilcans’ tax bill won’t just add trillions of dollars to the deficit through a massive giveaway to wealthy elites, it will also take the US Postal Service’s awesome new EVs and sell them off for pennies on the dollar, wasting money simply out of spite for vehicles that were already cleaning your air and making your community safer.
Update: The Senate parliamentarian has ruled that the body can’t force USPS to scrap these EVs, at least not without a 60-vote supermajority.
The Postal Service has used the same Grumman LLV vehicles for decades, produced from 1986-1994. So, some of these trucks are nearly 40 years old, and all of them are at least 30 years old.
The vehicles are showing their age – they get poor mileage, they break down often (or catch fire, as about 100 of the old gas guzzlers did last year), they emit significant pollution, and they have poor ergonomics.
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So, in 2015, the USPS started the process of finding a replacement.
After many bids and back-and-forth (including startups going out of business), the USPS, led by Postmaster Louis DeJoy, picked Oshkosh’s “Next Generation Delivery Vehicle” (NGDV) as the next postal vehicle (DeJoy, who was apparently not corrupt enough for the republicans, was forced out of his position in March and replaced by David Steiner, a board member of FedEx, a company that stands to benefit from republican attempts to hobble the USPS).
The NGDV is being built in a new Oshkosh facility in Spartanburg, South Carolina, hiring 1,000 additional employees in the area.
The vehicle has a goofy look to it, but it’s a goofy look for a reason.
The large window gives exceptional visibility, meaning the kids and pets that are likely to occupy residential areas are easier to see, and thus easier for drivers to avoid.
And the tall roof makes it easier for drivers to enter and exit, reducing strain on their bodies which means lower labor costs overall – less injury, drivers potentially being able to stay in their jobs longer, and so on.
But that’s just talking about the look of the vehicle – there are even more beneficial features, like much more cargo space, driver assistance safety features (around-view cameras, blind spot monitors and collision sensors), and air conditioning, something the original LLVs lacked (and which is only becoming more necessary as the planet heats up).
As for powertrain, the NGDV is available in both gas and electric options, with the gas version getting a paltry 8.6mpg (similar to the old LLVs), but the electric version being naturally much more efficient.
Electrification is a perfect choice for most delivery vehicles. These vehicles do set daily routes with lots of starting and stopping, in neighborhoods where people live and breathe, and return back to the same place every night. It’s an ideal application for EVs, for the vast majority of rotues.
Higher efficiency electric drive means money savings on fuel and maintenance for most routes. Overall, a highly electrified fleet was estimated to save taxpayers $4.3 billion over its lifetime.
But perhaps the most obvious benefit of electric mail trucks is the lack of pollution in the places where people spend most of their time: at home. (I don’t know about you, but my mail carrier’s broken truck stinks up the place every day, forcing me to close the windows as it fails to start half the time – and I’m pretty sure this is a common experience)
Despite these benefits, at first, USPS planned to buy only 10% EVs, with the remainder being gas. But after that announcement, several entities (including Electrek) pointed out that even by USPS’ uncharitable calculations, EVs would save money for the vast majority of routes (and that’s not considering health and environmental benefits).
Thankfully, reason prevailed over time, and the USPS gradually increased its plan such that it eventually said it would buy only electric trucks after 2026, with relatively few gas trucks acquired before then for the few routes that electric isn’t suitable for. It’s also supplementing those purchases with some off-the-shelf Ford E-Transits to function as delivery vehicles, with fewer custom features but an easier rollout as E-Transits are readily available.
The NGDV has suffered delays, but as the truck has finally started to roll out, it’s been enormously popular. When the truck started use last year in Atlanta, drivers immediately loved it. They loved the new features, better safety, and less stress on their bodies.
Republicans move to undo these improvements, wasting taxpayer dollars
And so, of course, republicans are now threatening this unequivocally good thing in a way that’s only going to cost taxpayers more money and ensure that your mail costs, the pollution you breathe in your home and the danger to your neighborhood all increase.
As reported by the Washington Post, Senate republicans are considering a version of the tax bill that would auction off these vehicles, at pennies on the dollar, seemingly simply out of spite for the program.
As usual, republican justifications for the billions of dollars in waste they’re proposing don’t stand up to even the slightest amount of scrutiny.
Senator Rand Paul (R-KY) stated that the plan “aims to cut unnecessary costs and focus USPS on delivering mail and not achieving the environmental initiatives pushed by the Biden Administration.”
But Paul ought to know this is false, because he’s part of the Senate, the body that approved spending for these vehicles in the first place in 2022 (and, if you remember your high school civics class as Paul apparently does not, the Senate is not part of the “Biden Administration”). Nor is the USPS directly part of any presidential administration, since it is an independent federal agency, and during the bidding process was headed by Louis DeJoy, who was appointed during one Mr. Donald Trump’s first stint squatting in the White House.
Paul should also know that the bidding process started in 2015, and thus that the majority of it occurred while nobody named Biden was in the White House in the first place.
He also ought to know that most of that money is already spent, and selling off items the USPS already owns for pennies on the dollar doesn’t “save” anyone any money. Neither does having to buy all new gas vehicles, with higher fueling and maintenance costs, to replace them – this is the very definition of “unnecessary costs.”
(Update: In another lesson to Rand Paul about how the Senate works, the Senate Parliamentarian said that his USPS plan would require a 60-vote supermajority… but Congress has violated that rule recently anyway)
Worse, falling back to the old LLVs and/or restarting the bidding process for their replacement would take more time and cause more waste. And in the interim we’d be stuck with these “obsolete” vehicles (as the USPS itself calls them) which, as covered above, are inefficient, unsafe, lack features, and routinely catch fire. All of this gets in the way of the focus on delivering mail.
So, Paul is either lying or stupid, but given the letter after his name, we’re pretty sure it’s both.
The USPS rightly pointed out what a stupid idea this is, stating “The funds realized by auctioning the vehicles and infrastructure would be negligible. Much of infrastructure is literally buried under parking lots, and there is no market for used charging equipment” (hmm, tearing out charging equipment for no benefit at all? where have we heard that before…). It said this action “will seriously cripple our ability to replace an aging and obsolete delivery fleet.”
The service estimates that scrapping the 7,200 vehicles it already owns and is using would waste $1 billion, and tearing out infrastructure would cost $500 million, for a total pricetag of $1.5 billion worth of unnecessary waste – and this only accounts for money already spent, not the additional several billions in lost savings for Americans from lower fuel, labor, health and environmental costs.
USPS urged the Senate “to pause and consider the substantial harm this proposal would cause to the Postal Service and our customers, your constituents.”
But, given the republican party’s current direction, maybe that exhortation would backfire. Harm seems to be precisely what they want, as reflected in everythingthey’redoingthesedays.
If you do happen to be one of those constituents, particularly in a republican state, it might be worth giving your Senator a call and asking them to stop wasting your money and raising your mail costs by selling off money-saving vehicles that promise to clean the air of your community. Here’s where you can find your Senator’s contact info. This might be of particular interest to South Carolina Senators Lindsey Graham, (D.C. office phone (202) 224-5972, email form here) and Tim Scott (D.C. office phone (202) 224-6121, email form here), whose vote would kill jobs in their state, where the trucks are being built.
Among republicans’ proposed cuts is the rooftop solar credit. That means you could have only until the end of this year to install rooftop solar on your home, before republicans raise the cost of doing so by an average of ~$10,000. So if you want to go solar, get started now, because these things take time and the system needs to be active before you file for the credit.
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U.S. President Donald Trump speaks to reporters onboard Air Force One en route to the NATO summit in The Hague, Netherlands, June 24, 2025.
Brian Snyder | Reuters
The ceasefire between Israel and Iran appears to be holding. In yesterday’s newsletter, we talked about how a blitzkrieg of missile-led diplomacy seemed to help de-escalate tensions.
The flipside of that strange path to a truce is that missiles are, well, fundamentally weapons. Mere hours after both countries agreed to the ceasefire, Israel said its longtime rival had fired missiles into its borders — an accusation which Tehran denied — and was preparing to “respond forcefully.” Probably with more missiles.
U.S. President Donald Trump — who reportedly brokered the ceasefire with Qatar’s Emir Sheikh Tamim bin Hamad Al Thani — expressed frustration with those developments.
“I’m not happy with them. I’m not happy with Iran either but I’m really unhappy if Israel is going out this morning,” Trump told a reporter pool en route to the NATO summit in the Netherlands.
His admonishments seemed to work. There is now a fragile armistice between the two countries.
Oil prices fell and U.S. stocks jumped.
Reuters uploaded a photo of Israeli residents playing frisbee at the beach on June 24. Flights at Israel’s Ben Gurion Airport are resuming, and Iran’s airspace is partially open, according to flight monitoring firm FlightRadar24, CNBC reported at around 3 a.m. Singapore time.
Three hours after that update, NBC News, citing three people familiar with the matter, reported that an initial assessment from the U.S. Defense Intelligence Agency found the American strikes on Iran’s nuclear sites on Saturdayleft “core pieces … still intact.”
Trump pushed backed on those accusations Tuesday night, writing that “THE NUCLEAR SITES IN IRAN ARE COMPLETELY DESTROYED!”
And so it goes.
What you need to know today
Israel-Iran ceasefire holds, for now The fragile ceasefire between Israel and Iran, announced by Trump on Monday, appears to be holding. Israel on Tuesday said it would honor the ceasefire so long as Iran does the same. Earlier in the day, both countries accused each other of violating the truce, and said they were ready to retaliate, prompting Trump to say he’s “not happy” with them. Stay updated on the Israel-Iran conflict with CNBC’s live blog here.
Oil pares losses Oil prices regained some ground during Asia trading hours Wednesday. Both U.S. crude oil and global benchmark Brent rose around 1.5%. On Tuesday stateside, oil prices tumbled roughly 6%. Earlier in the day, Trump said China can keep buying oil from Iran, in what seemed like a sign that the U.S. may soften its pressure campaign against Tehran.
Powell says Fed is ‘well positioned to wait’ At a U.S. congressional hearing Tuesday, Federal Reserve Chair Jerome Powell said the economy was still strong. But he noted that inflation is still above the central bank’s target of 2%, and the Fed has an “obligation” to prevent tariffs from becoming “an ongoing inflation problem.” In combination, those considerations make the Fed “well positioned to wait” before making a decision on interest rates.
Don’t make trade political: Chinese premier “Globalization will not be reversed,” Chinese Premier Li Qiang said on Wednesday through an official English translation at the World Economic Forum’s annual conference in China, often dubbed “Summer Davos.” Li urged all sides not to turn trade into a political or security issue, and said engaging in the international economy is a way of “reshaping the rules and order.”
[PRO] Not ‘bullish enough’ on rally: HSBC The S&P 500′s rally off its April lows has brought it back to roughly 1% off its record high in a very short time. It’s an advance that has perplexed many investors, who worry that another pullback is on the horizon. But Max Kettner, chief multi-asset strategist at HSBC, said he worries he’s not “bullish enough” on the current rally.
And finally…
Renminbi notes next to U.S. dollar notes at a Kasikornbank in Bangkok, Thailand, Jan. 26, 2023.
China is devising more ways for foreign institutions to use the yuan, as international confidence in the U.S. dollar falters.
In a sign of growing resolve in Beijing to lure the world away from the dollar, People’s Bank of China Governor Pan Gongsheng announced plans last week to set up a center for digital yuan internationalization in Shanghai and promote the trading of yuan foreign exchange futures. Beijing has already rolled out a digital version of its currency to replace some cash and coins in circulation.
US President Donald Trump speaks to reporters about the Israel-Iran conflict, aboard Air Force One on June 24, 2025, while traveling to attend the NATO’s Heads of State and Government summit in The Hague in the Netherlands.
Brendan Smialowski | Afp | Getty Images
The ceasefire between Israel and Iran appears to be holding. In yesterday’s newsletter, we talked about how a blitzkrieg of missile-led diplomacy seemed to help de-escalate tensions.
The flipside of that strange path to a truce is that missiles, well, are fundamentally weapons. Mere hours after both countries agreed to the ceasefire, Israel said its longtime rival had fired missiles into its borders — an accusation which Tehran denied — and was preparing to “respond forcefully.” Probably with more missiles.
U.S. President Donald Trump — who reportedly brokered the ceasefire with Qatar’s Emir Sheikh Tamim bin Hamad Al Thani — expressed frustration with those developments.
“I’m not happy with them. I’m not happy with Iran either but I’m really unhappy if Israel is going out this morning,” Trump told a reporter pool en route to the NATO summit in the Netherlands.
His admonishments seemed to work. There is now a fragile armistice between the two countries.
Oil prices fell and U.S. stocks jumped.
Reuters uploaded a photo of Israeli residents playing frisbee at the beach on June 24. Flights at Israel’s Ben Gurion Airport are resuming, and Iran’s airspace is partially open, according to flight monitoring firm FlightRadar24, CNBC reported at around 3 a.m. Singapore time.
Three hours after that update, NBC News, citing three people familiar with the matter, reported that an initial assessment from the U.S. Defense Intelligence Agency found the American strikes on Iran’s nuclear sites on Saturdayleft “core pieces … still intact.”
And so it goes.
What you need to know today
Israel-Iran ceasefire holds, for now The fragile ceasefire between Israel and Iran, announced by Trump on Monday, appears to be holding. Israel on Tuesday said it would honor the ceasefire so long as Iran does the same. Earlier in the day, both countries accused each other of violating the truce, and said they were ready to retaliate, prompting Trump to say he’s “not happy” with them. Stay updated on the Israel-Iran conflict with CNBC’s live blog here.
Oil prices slump for a second day Oil prices tumbled Tuesday, its second day of declines, as the market betthat the risk of a major supply disruption had faded. U.S. crude oil settled down 6% at $64.37 a barrel while the global benchmark Brent fell 6.1%, to $67.14 during U.S. trading. Prices closed 7% lower on Monday. Earlier Tuesday, Trump said China can keep buying oil from Iran, in what seemed like a sign that the U.S. may soften its pressure campaign against Tehran.
Powell says Fed is ‘well positioned to wait’ At a U.S. congressional hearing Tuesday, Federal Reserve Chair Jerome Powell said the economy was still strong. But he noted that inflation is still above the central bank’s target of 2%, and the Fed has an “obligation” to prevent tariffs from becoming “an ongoing inflation problem.” In combination, those considerationsmake the Fed “well positioned to wait” before making a decision on interest rates.
U.S. is committed to NATO: Secretary-General There is “total commitment by the U.S. president and the U.S. senior leadership to NATO,” the military alliance’s Secretary-General Mark Rutte said Tuesday morning, as the summit kicked off in The Hague, Netherlands. But America expects Europe and Canada to spend as much as the U.S. does on defense. Ahead of the summit, members agreed to increase defense spending to 5% of gross domestic product by 2035.
[PRO] Not ‘bullish enough’ on rally: HSBC The S&P 500′s rally off its April lows has brought it back to roughly 1% off its record high in a very short time. It’s an advance that has perplexed many investors, who worry that another pullback is on the horizon. But Max Kettner, chief multi-asset strategist at HSBC, said he worries he’s not “bullish enough” on the current rally.
And finally…
Pictures from the semi-official Tasnim news agency show the Stena Impero being seized and detained between July 19 and July 21, 2019 near strait of Hormuz, Iran.
According to Angeliki Frangou, a fourth-generation shipowner and chairman and CEO of Greece-based Navios Maritime Partners, which owns and operates dry cargo ships and tankers, vessels in the Strait of Hormuz are still being threatened by continuous GPS signal blocking.
“We have had about 20% less passage of vessels through the Strait of Hormuz, and vessels are waiting outside,” Frangou told CNBC.
“You are hearing a lot from the liner [ocean shipping] companies that they are transiting only during daytime because of the jamming of GPS signals of vessels. They don’t want to pass during the nighttime because they find it dangerous. So it’s a very fluid situation,” Frangou said.
Mercedes-Benz is sending nearly 5,000 electric vans to Amazon’s European delivery partners in its biggest EV handoff to date. The fleet will hit the streets in five countries in the coming months.
Three-quarters of the fleet are Mercedes’ larger eSprinter vans, while the rest are the more compact eVito panel vans. More than 2,500 are going to Germany, and Amazon says this new EV fleet will help deliver more than 200 million parcels a year across Europe.
This is the biggest EV order Mercedes-Benz Vans has ever received. It builds on a partnership that started in 2020, when Amazon first added more than 1,800 electric vans from Mercedes to its delivery network.
“We’re further intensifying our long-standing relationship with Amazon and working together toward an all-electric future of transport,” said Sagree Sardien, head of sales & marketing at Mercedes-Benz Vans. “Our eVito and eSprinter are perfectly tailored to meet the demands of our commercial customers regarding efficiency and range.”
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In 2020, Mercedes-Benz joined Amazon’s Climate Pledge, a commitment Amazon co-founded with Global Optimism to reach net zero by 2040.
Both the eSprinter and eVito are designed with delivery drivers in mind. With batteries tucked into the underbody, the vans offer unrestricted cargo space. Both come standard with the MBUX multimedia system, which supports the integration of automatic charging stops and Mercedes’ public charging network via navigation.
Safety and comfort got upgrades, too. New driver assistance features come standard, and the Amazon vans are customized with shelves and a sliding door between the cabin and cargo area for easy parcel access.
The eVito vans, which were built at Mercedes’ plant in Vitoria, Spain, are ideal for last-mile urban deliveries. They come in 60 kWh or 90 kWh battery options, with peak motor outputs of either 85 kW or 150 kW, and can travel up to 480 km (298 miles) on a full charge.
Meanwhile, the eSprinter is the all-rounder for range and loading volume. Built in Düsseldorf, it comes in two lengths and three battery sizes, with a range of up to 484 km (300 miles). It boasts up to 14 cubic meters of cargo space and can handle a gross weight of up to 4.25 tonnes.
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