Trump Administration Considers Plan to Privatize U.S. Postal Service

The Trump administration is reportedly considering firing members of the independent government board that oversees the U.S. Postal Service (USPS), a move that could pave the way for privatization. According to multiple reports, including one from The Washington Post, President Donald Trump is planning to dissolve the USPS Board of Governors and place the agency directly under the control of the Commerce Department, led by Secretary Howard Lutnick. The Wall Street Journal also confirmed the reports, citing government officials.

While the Postal Service declined to comment, a White House official denied the claims, stating that no executive order is in the works and that Secretary Lutnick is not pushing for such a plan.

Privatization of postal services has been done in other countries, but such a drastic move for the USPS, a 250-year-old institution, could significantly change the way Americans receive various critical deliveries, such as online purchases, prescription drugs, checks, and mail-in ballots. It could even end the long-standing requirement for universal service, where deliveries are made to all homes and businesses, not just the profitable ones. Many private companies, including UPS, rely on the USPS for the “last mile” of delivery.

Trump had previously commented on privatization as a potential idea, stating in December that it was “not the worst idea I’ve ever heard” and that it had been popular for a long time. However, he abandoned similar plans during his first term in 2018.

Privatizing the USPS would likely require Congressional approval due to numerous federal laws that govern the quasi-independent service, including mandates for universal delivery and restrictions on strikes by postal workers. The USPS is also one of the largest unionized employers in the U.S., with a workforce of 600,000 employees.

Although the USPS has been losing money for years, it reported a net income of $144 million for the last quarter of 2024.

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