White House 'Deeply Troubled' By Postmaster Louis DeJoy's Potential Conflicts of Interest

President Joe Biden announced Friday he would appoint two new members to the U.S. Postal Service Board of Governors, possibly the first step in removing current Postmaster Louis DeJoy.

The Associated Press reported that Biden will be replacing two of DeJoy's backers, chair Ron Bloom and John Barger, instead nominating Daniel Tangherlini and Derek Kan. The nine governors, appointed by the president and confirmed by the Senate, have the power to select the postmaster general.

DeJoy is a Trump-era appointee who received criticism in 2020 for how slow the USPS was during an election with a large amount of mail-in ballots.

The postmaster general has also fell under scrutiny for his financial interests. In 2020, the AP reported that he has had considerable financial stakes in companies that both do business and compete with the USPS.

White House press secretary Jen Psaki said during a Friday news briefing that the administration is "deeply troubled" by DeJoy's "potential financial conflicts of interest and take serious issues with the job he's doing running the Postal Service."

DeJoy has denied claims of conflicts of interest in the past. In a statement from last year, he said he takes his ethical obligations seriously and "will remain in compliance with those obligations."

For more reporting from the Associated Press, see below.

Postmaster General, Louis DeJoy
Joe Biden announced plans Friday to nominate two new members to the U.S. Postal Service Board of Governors, a potential first step in removing USPS Postmaster General Louis DeJoy. Above, DeJoy speaks during a House Oversight and Reform Committee hearing, Feb. 24 in Washington. Jim Watson/Pool via AP, File

The president would likely have to make additional appointments as terms expire in order for the board to replace DeJoy, since the board is responsible for choosing the postmaster general.

To give the board joint partisan representation, only five governors can belong to the same political party.

Tangherlini works as the managing director of the Emerson Collective, a private philanthropic firm. He served as the administrator of the General Services Administration during the Obama presidency and as the chief financial officer of the Treasury Department.

"If confirmed, I look forward to serving and working to make sure the Postal Service is run as efficiently and effectively as possible," Tangherlini said in a statement.

Kan is an executive at Deliverr, an ecommerce fulfillment startup. During the Trump presidency, he was the deputy director of the Office of Management and Budget and served as the undersecretary for policy at the Transportation Department. He also worked as a policy adviser to Senate Republican Leader Mitch McConnell.

Kan said he "will work to strengthen the Postal Service so that it will continue to serve the American people well into the future."

USPS, mail, Postal Service
The United States Postal Service postmaster general came under fire during the 2020 election for the service's slowness in a time when many were mailing in their ballots. Above, a view of the USPS logo on a piece of priority mail packaging during a media tour of a USPS package support annex on Nov. 4, in La Vergne, Tennessee. Photo by Brett Carlsen/Getty Images