Biden confirms plan to replace key allies of Postmaster General Louis DeJoy, potentially setting up his ouster

• President Joe Biden on Friday announced plans to nominate two new members of the postal board of governors.
• The postal board is the body that appoints the postmaster general, and Biden's new nominees could set the stage to oust Postmaster General Louis DeJoy.

President Joe Biden on Friday announced his intention to nominate two former federal officials to positions on the Board of Governors of the United States Postal Service, potentially setting the stage to replace Postmaster General Louis DeJoy.

According to a report from the Washington Post, the White House confirmed plans Friday to nominate former Obama administration official Daniel Tangherlini to replace its chairman Ron A. Bloom, a Democrat, and to nominate Republican Derek Kan, who formerly led the Office of Management and Budget, to replace Republican John M. Barger.

The move was a surprise to members of Congress and to postal service officials, sources told the Washington Post. Members of the board are nominated by the president, confirmed by the Senate, and serve seven-year terms.

White House Press Secretary Jen Psaki said at a press briefing on Friday the Biden administration had concerns about DeJoy's handling of USPS.

"We are, of course, deeply troubled, continue to be deeply troubled — as many Americans are — by the earlier reporting on Postmaster General DeJoy's potential financial conflicts of interest and take serious issues with the job he's doing running the Postal Service," Psaki said.

She added: "It's up to the board to make a determination about leadership, but we have continued concerns about the postmaster general's leadership."

As the Post reported, Bloom stood by controversial changes DeJoy made at the USPS to save money at the cash-strapped agency that has led to slowdowns to mail delivery. As the Post noted, the hiring of DeJoy, who previously led fundraising efforts for the Republican National Convention and in 2017 hosted a fundraiser for Trump, raised eyebrows as it came as a larger attempt by the Trump administration to get greater control at the postal service.

There have also been additional concerns about DeJoy's connections to Bloom after the postmaster general purchased up to $305,000 in bonds from an asset management firm where Bloom serves as a senior executive, according to The Washington Post.

Ethics officials at the postal service have cleared the transaction, the Post reported.

The Federal Bureau of Investigation in June announced it had launched an investigation into DeJoy as part of a larger investigation into potential campaign finance violations committed by leaders of his former company, New Breed Logistics, as Insider previously reported.