EXCLUSIVE: Hawley expands USPS probe with blistering letter accusing chief of dodging Congress

EXCLUSIVE: Hawley Expands USPS Investigation With Stern Letter

EXCLUSIVE - FIRST ON FOX: Sen. Josh Hawley, R-Mo., is significantly expanding his investigation into the U.S. Postal Service, accusing Postmaster General David Steiner of ignoring congressional oversight while demanding records on the agency's use of outside restructuring consultants as USPS projects billions more in financial losses. This EXCLUSIVE development marks a major escalation in the senator's scrutiny of postal operations.

In a letter obtained by Fox News Digital, the Missouri Republican said his office has received no documents in response to a June 30 oversight request and informed Steiner that the investigation will now examine USPS's hiring of consulting firm Alvarez & Marsal. "To date, my office has received no documents in compliance with my June 30 letter," Hawley wrote. "Is it your intention simply to ignore statutory oversight? I expect full compliance with my oversight requests immediately."

Consulting Contracts Under Fire

Hawley said Congress must review USPS's relationship with Alvarez & Marsal, a restructuring firm Steiner disclosed earlier this year had been hired to help the postal service plan for its financial future. The senator questioned why USPS is paying outside consultants while projecting another multibillion-dollar loss and continuing to award executive bonuses. "It is surprising to me that as you complain about this monetary crisis, you and other USPS executives continue to rake in annual bonus packages and have found plenty of cash to hire these outside consultants like A&M — all while service declines and far too many Americans are not receiving their mail," Hawley wrote in this EXCLUSIVE account of the growing dispute.

Hawley is requesting records detailing who hired Alvarez & Marsal, how much the firm has been paid and whether it was asked to recommend closing rural post offices, limiting rural delivery or reviewing executive compensation. He also inquired about whether USPS plans to release the firm's recommendations to Congress or the public. The expanded investigation comes weeks after Fox News Digital first reported Hawley launched an oversight probe into USPS over dumped mail in St. Louis, demanding records on delayed deliveries, possible criminal misconduct and executive bonuses.

That inquiry followed a contentious Senate hearing in June, where Hawley pressed Steiner over thousands of pieces of dumped mail discovered in St. Louis. Hawley later criticized the postmaster general for saying he was unaware of the incident and publicly called for his resignation if he refused to return his performance bonus. The senator's persistence has now resulted in this EXCLUSIVE expanded probe covering multiple aspects of postal management.

"If the Postal Service plans to address its losses through hiring A&M, then Congress must be apprised of the nature of the engagement and A&M's recommendations to ensure that USPS service standards — such as universal service and rural delivery — do not continue to decline in any agency restructuring plan," Hawley wrote.

In his latest letter, Hawley said the USPS has yet to comply with his original document requests. Hawley noted USPS has lost an estimated $25 billion over the past three fiscal years and is projecting at least an $8.1 billion loss in fiscal year 2026 despite reforms Congress approved in 2022 to improve the agency's finances. The senator requested USPS respond to his expanded oversight questions by July 24. USPS did not immediately respond to Fox News Digital's request for comment.

This EXCLUSIVE report highlights the growing tension between congressional oversight and postal leadership as the agency faces mounting financial challenges. The investigation now encompasses consulting contracts, executive compensation, rural service delivery, and potential misconduct — all while the postal service struggles with billions in projected losses.

Fox News Digital's Alexandra Koch contributed to this report.