By David Shepardson

WASHINGTON, (Reuters) – President Joe Biden has nominated two ex-government officials to the U.S. Senate. The White House announced Friday that Ron Bloom will be replaced as chairman of the USPS Board of Governors.

Biden will nominate Daniel Tangherlini. Tangherlini was Chief Financial Officer at the U.S. Treasury Department, under President Barack Obama.

He will also nominate Derek Kan from startup Deliverr, an executive and former deputy director of Office of Management and Budget and senior Transportation Department official under the Trump administration.

Reuters was the first to report on these nominations.

Some Democrats have reacted angrily to Bloom’s support of the plan by Postmaster General Louis DeJoy, which was released in January. It aims to streamline USPS operations and reduce red ink. The board elected Bloom to be chairman again last week even though the White House was still undecided about whether it would nominate him.

Bloom didn’t immediately respond to our Friday inquiry.

Bloom will be removed from the board in the next month. Biden will also replace Governor John Barger.

Carolyn Maloney (House Oversight and Government Reform Committee Chairwoman) stated that the USPS has “lost sight of its core mission” under DeJoy. She said she hoped Tangherlini and the rest of board “will begin to hold the Postmaster General accountable for the damage that has been done to the Postal Service’s operations and credibility.”

Tangherlini, a former District of Columbia deputy-mayor while Kan used to be at Lyft (NASDAQ:), and was unanimously confirmed in the Senate by Amtrak’s board.

Numerous Democrats have called on the Postal Board for DeJoy’s dismissal. DeJoy was a Trump supporter and USPS head. He came under fire last year after he proposed changes in election mail delivery. A White House official stated to Reuters that DeJoy’s proposed reforms could have “serious concerns” regarding potential adverse effects.

Officials stated that the board can’t have more than five Democrats, and they are unlikely to be able to elect a majority to replace DeJoy.

The revised USPS service standards came into effect in September. This caused some delays for first-class mail delivery.

About 40% of all first-class mail was affected by the revisions to existing service standards for one- to three day delivery.

In March, DeJoy proposed cutting $160 Billion in losses for the next ten years with service standard changes as a major part. Over the last year, USPS’s delivery performance has been poor. They have faced a significant increase in package deliveries and problems with staffing due to COVID-19.

Since 2007, the Postal Service reported net losses exceeding $90 billion. A reason could be 2006 legislation, which mandated that the Postal Service pre-fund over $120 million in pension and retiree liabilities. It is a requirement that other businesses do not share.

Congress will soon consider a plan for $46 billion of financial relief to be provided by the USPS over the next 10 years. It would also eliminate the requirement that service pre-fund retired health benefits for 75 year.