U.S. President-elect Donald Trump Has Expressed Interest in Privatizing Postal Service
U.S. President-elect Donald Trump has expressed a keen interest in privatizing the U.S. Postal Service, according to three people with knowledge of the matter. Trump has discussed his desire to privatize the Postal Service with his pick for commerce secretary, Howard Lutnick, and with Elon Musk and Vivek Ramaswamy, who will lead the Department of Government Efficiency.
The Postal Service has lost more than $100 billion since 2007 and reported a net loss of $9.5 billion for its fiscal year ending September 30, largely due to an increase in non-cash workers’ compensation expense. When told of the agency’s annual losses, Trump said the government should not subsidize the organization.
Privatizing the Postal Service could disrupt the e-commerce industry in the U.S., including Amazon, which uses USPS for “last-mile” delivery between Amazon’s fulfillment centers and customers. It could also hurt small businesses and rural consumers who use the Postal Service, as it is the only carrier that will deliver to remote corners of the country.
A USPS spokesperson said that the agency has reduced its operations by 45 million work hours over the last three years and cut transportation spending by $2 billion. The agency is also seeking regulatory approval to modernize its mail processing and transportation network to align with modern practices, which will save between $3.6-$3.7 billion annually.
The Trump transition team is also considering canceling the Postal Service’s contracts to electrify its delivery fleet, including multibillion-dollar contracts with Oshkosh and Ford for tens of thousands of battery-driven delivery trucks and charging stations. In 2020, Congress authorized the Treasury Department to lend the Postal Service up to $10 billion as part of a $2.3 trillion coronavirus stimulus package, which Trump threatened to block.
