President Donald Trump may soon attempt to place the U.S. Postal Service under Commerce Department control, a move that could reshape a $1.2 trillion mailing industry employing over 7 million Americans.
Trump plans to disband the agency’s governing board through executive order, according to officials who spoke anonymously to the Washington Post. The White House reportedly denied any such order is planned.
The potential restructuring comes as USPS faces financial challenges, reporting a $9.5 billion net loss in fiscal-year 2024 despite revenue growth. The agency projects a $6.9 billion loss in 2025, with 80% of deficits stemming from fixed costs like pension contributions.
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“The public Postal Service is the low-cost anchor of a $1.2 trillion mail and shipping industry,” American Postal Workers Union President Mark Dimondstein said in a statement. “Efforts to privatize the Postal Service, in whole or in part, or to strip it of its independence or public service mission, would be of no benefit to the American people. Instead, it would drive up postage rates and lead to reduced service, especially to rural America.”
USPS serves nearly 167 million addresses nationwide and employs over 525,000 workers. A Pew Research Center survey last summer found 72% of Americans view the agency favorably.
“There is a lot of talk about the Postal Service being taken private,” Trump said in December. “It’s a lot different today, between Amazon and UPS and FedEx.”
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Half of the officials interviewed by the Post said the governing board plans legal action if Trump attempts a takeover, which could violate federal law. Board members are presidential appointees requiring Senate confirmation.
“The anxiety over the Postal Service is not only three-quarters of a million workers. It’s that this is something that does not belong to the president or the White House. It belongs to the American people,” James O’Rourke, University of Notre Dame postal service researcher, told the Post.
Any restructuring could bring facility closures, reduced delivery schedules, and higher rates. Rural communities, which heavily depend on mail service, face particular risk from service reductions.
The Department of Government Efficiency, already responsible for thousands of federal job cuts, would likely target USPS workforce reductions under Trump administration control, according to Newsweek.
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