Potential USPS overhaul: Trump administration eyes major changes to Postal service
Alona Yadav | Feb 22, 2025, 13:23 IST
( Image credit : AP )
President Trump is considering major changes to the USPS, potentially placing it under the Commerce Department's oversight. This move could disrupt essential mail deliveries and faces strong opposition from labor organizations. Congressional approval would be required for significant reforms due to existing federal laws governing the service.
In a significant development that could reshape one of America's oldest institutions, President Donald Trump has indicated plans to restructure the United States Postal Service, potentially placing it under Commerce Department oversight. This move could fundamentally alter how Americans receive essential deliveries, from online purchases to prescription medications and mail-in ballots.
Speaking at Commerce Secretary Howard Lutnick's swearing-in ceremony on Friday, Trump confirmed his interest in reforming the 250-year-old agency. While stopping short of announcing immediate changes, the president suggested a "form of merger" with the Commerce Department, emphasizing his desire for a more efficient postal service that "doesn't lose massive amounts of money."
The Washington Post and Wall Street Journal reported that the administration is considering disbanding the USPS Board of Governors, which has governed the agency independently for over five decades. In response, the board reportedly held an emergency meeting to retain legal counsel, preparing for potential litigation if the president attempts to alter the agency's independent status.
This proposed reorganization comes at a critical time for the USPS. Despite posting its first profitable quarter in nearly two years with $144 million in net income for late 2024, the agency faced a $9.5 billion loss in the previous fiscal year. While traditional mail volume continues to decline, package delivery has surged due to online shopping growth.
The prospect of privatization, which Trump previously supported, raises concerns about universal service requirements. Currently, the USPS must deliver to all addresses, including rural locations that private companies might find unprofitable to serve. A 2018 task force report suggested that a private operator might reduce delivery frequency and shift to central collection points rather than door delivery to cut costs.
Labor organizations have voiced strong opposition to potential privatization. The American Postal Workers Union characterized any such move as "an outrageous, unlawful attack on a storied national treasure," while Brian Renfroe, president of the National Association of Letter Carriers, warned that privatization would result in higher costs and slower delivery times for customers.
Despite concerns about potential changes, the USPS maintains strong public support. A recent Pew Research Center survey showed 72% approval rating for the agency, ranking it among the most popular federal institutions. This broad bipartisan support previously helped prevent privatization efforts during Trump's first term.
Any major structural changes to the USPS would likely require Congressional approval, given the numerous federal laws governing the service, including universal delivery requirements and labor regulations. As the nation's largest unionized employer with 630,000 workers, most covered by union contracts, any significant reforms would face substantial scrutiny from both lawmakers and labor representatives.
Speaking at Commerce Secretary Howard Lutnick's swearing-in ceremony on Friday, Trump confirmed his interest in reforming the 250-year-old agency. While stopping short of announcing immediate changes, the president suggested a "form of merger" with the Commerce Department, emphasizing his desire for a more efficient postal service that "doesn't lose massive amounts of money."
The Washington Post and Wall Street Journal reported that the administration is considering disbanding the USPS Board of Governors, which has governed the agency independently for over five decades. In response, the board reportedly held an emergency meeting to retain legal counsel, preparing for potential litigation if the president attempts to alter the agency's independent status.
This proposed reorganization comes at a critical time for the USPS. Despite posting its first profitable quarter in nearly two years with $144 million in net income for late 2024, the agency faced a $9.5 billion loss in the previous fiscal year. While traditional mail volume continues to decline, package delivery has surged due to online shopping growth.
The prospect of privatization, which Trump previously supported, raises concerns about universal service requirements. Currently, the USPS must deliver to all addresses, including rural locations that private companies might find unprofitable to serve. A 2018 task force report suggested that a private operator might reduce delivery frequency and shift to central collection points rather than door delivery to cut costs.
Labor organizations have voiced strong opposition to potential privatization. The American Postal Workers Union characterized any such move as "an outrageous, unlawful attack on a storied national treasure," while Brian Renfroe, president of the National Association of Letter Carriers, warned that privatization would result in higher costs and slower delivery times for customers.
Despite concerns about potential changes, the USPS maintains strong public support. A recent Pew Research Center survey showed 72% approval rating for the agency, ranking it among the most popular federal institutions. This broad bipartisan support previously helped prevent privatization efforts during Trump's first term.
Any major structural changes to the USPS would likely require Congressional approval, given the numerous federal laws governing the service, including universal delivery requirements and labor regulations. As the nation's largest unionized employer with 630,000 workers, most covered by union contracts, any significant reforms would face substantial scrutiny from both lawmakers and labor representatives.