PHILADELPHIA — On Friday, President Donald Trump revealed that he is contemplating bringing the U.S. Postal Service under the control of the Commerce Department. If implemented, this would represent a major change in how the agency is governed, as it has operated independently since 1970.
“Our aim is to create a post office that runs smoothly and avoids incurring significant losses,” Trump remarked. “We’re considering this adjustment, which some may perceive as a merger, but the Postal Service would maintain its distinct identity, and we believe it would lead to substantial improvements in its operations.”
These comments were made during the swearing-in ceremony for Commerce Secretary Howard Lutnick. Trump characterized this potential change as part of a broader strategy to tackle the financial challenges faced by the Postal Service, an organization that generates $78 billion annually yet has struggled due to declining first-class mail volumes.
Complimenting Lutnick’s business skills, Trump stated, “He possesses a remarkable business acumen, which is exactly what we need at this juncture. We believe we can turn things around. The Postal Service has been a considerable financial burden on this nation, resulting in enormous losses.”
Here are some essential insights regarding the operations of the U.S. Postal Service:
What is the history of the USPS?
The U.S. Postal Service has its roots in 1775, during the Second Continental Congress in Philadelphia, with Benjamin Franklin as the first postmaster general. It was designated as an executive branch department in 1872, but this changed following a strike over wages and benefits in 1970. In response to that strike, President Richard Nixon signed the Postal Reorganization Act, which established the U.S. Postal Service as an independent, self-sufficient entity.
In recent years, the Postal Service has encountered significant financial challenges and has resisted calls for privatization from Trump and others.
Who is employed by the USPS?
The 1970 reorganization provided workers with wage increases and collective bargaining rights, helping many Americans, particularly those from minority backgrounds, achieve middle-class status. The USPS currently employs approximately 640,000 individuals who are responsible for delivering mail, medications, election ballots, and packages across the nation, including in rural areas and remote islands. Throughout the coronavirus pandemic, postal workers remained active, with over 200 fatalities reported by the American Postal Workers Union.
Who oversees the USPS?
Louis DeJoy, a Republican donor and former logistics executive, was appointed as Postmaster General during Trump’s first term in 2020. His tenure has been marked by numerous challenges, including the pandemic, spikes in mail-in voting, and efforts to cut costs and adjust services to reduce losses. Recently, he rolled out a 10-year plan aimed at revitalizing operations but has since hinted at plans to resign, prompting the Postal Service Board of Governors to search for a new leader.
How is the USPS board structured and selected?
The USPS Board comprises up to nine members, all appointed by the president and confirmed by the Senate, with no more than five members allowed from the same political party.
Currently, Amber F. McReynolds, a former election official from Colorado, serves as chair, while Derek Kan, who previously worked in the Trump administration, holds the vice chair position. Both members were appointed by President Joe Biden.
The board has three vacancies due to the Senate’s failure to vote on Biden’s nominees for those positions. Biden appointed four of the six current governors, while Trump appointed the remaining two.
The board has the authority to hire and fire the postmaster general, who, along with a deputy postmaster, also serves on the board.
How is the USPS funded?
Since its reorganization in 1970, the USPS has primarily funded itself. Its annual budget, estimated at around $78.5 billion, mainly comes from customer fees, according to the Congressional Research Service. Congress contributes a modest annual appropriation—approximately $50 million for fiscal year 2023—to support free and reduced-cost mail services.
Faced with declining first-class mail revenues and the costs associated with retiree benefits, the Postal Service recorded $87 billion in losses from 2007 to 2020.
Last year, DeJoy unveiled a decade-long strategy to modernize operations and recover financial losses, warning customers about “uncomfortable” rate increases as the Postal Service seeks to stabilize its fiscal situation.
Critics, including several congressional members, have expressed concerns that past consolidations have resulted in slower service and worry that further consolidations could adversely affect rural mail delivery.
What is Trump’s perspective on the USPS?
Throughout his presidency, Trump has been outspoken in his critiques of the Postal Service. In 2020, he threatened to withhold COVID-19 relief funds unless the agency raised its package rates for large clients like Amazon, owned by billionaire Jeff Bezos, who also owns The Washington Post, a publication often criticized by Trump.
More recently, Trump has shown interest in privatizing the Postal Service, citing competitive pressures from companies such as Amazon, UPS, and FedEx. “It’s a concept that many have discussed for some time. We are looking into it,” he stated.
