President Trump’s Proposal to Overhaul the US Postal Service: What You Need to Know

1. The Plan to Change the US Postal Service

In a move that has sparked significant debate, President Donald Trump has expressed his intention to reform the United States Postal Service (USPS), a institution that has operated independently for over five decades. The proposed changes could include placing the USPS under the direct control of the Commerce Department, with Secretary Howard Lutnick potentially overseeing the agency. This shift could be the first step toward privatization, a move that would fundamentally alter how Americans receive essential deliveries, including online purchases, prescription drugs, checks, and vote-by-mail ballots. The USPS, a 250-year-old institution that predates the founding of the United States, has long been a cornerstone of American infrastructure, ensuring universal delivery to all addresses, including rural areas that private companies often find unprofitable to serve.

Trump’s plan, first reported by The Washington Post and later confirmed by The Wall Street Journal, involves disbanding the USPS Board of Governors and consolidating control under the Commerce Department. While the President has not yet announced an executive order to disband the board, the Board of Governors has taken the threat seriously enough to retain outside counsel and prepare for legal action if the President attempts to alter its independent status. This move is part of a broader pattern by the Trump administration to consolidate control over federal agencies, as seen in previous actions targeting the National Labor Relations Board and the Equal Employment Opportunity Commission.

2. The Global Context of Postal Privatization

While the idea of privatizing postal services is not new—other countries have undertaken similar steps in recent decades—the potential privatization of the USPS raises significant concerns about its impact on American communities. Privatization in other countries has often led to cost-cutting measures, such as reduced delivery frequencies and centralized delivery points, which could leave many Americans, particularly those in rural areas, without access to reliable mail service. The USPS is currently required by law to provide universal service to all American addresses, a mandate that would likely be at risk under a privatized model.

Even private companies like United Parcel Service (UPS) rely on the USPS for the “last mile” of delivery, especially in rural areas. A privatized USPS might abandon these unprofitable routes, leaving millions of Americans without access to essential services. The proposed changes have raised fears that the USPS could become a private entity primarily serving urban and profitable areas, while neglecting rural communities that depend on the service for everything from prescription medications to online purchases.

3. The Financial State of the USPS

The USPS has faced significant financial challenges in recent years, driven by declining mail volumes as Americans increasingly rely on digital communications. The agency reported a $9.5 billion net loss in the fiscal year ending in September, up from a $6.5 billion loss the previous year. However, the USPS did report a profitable quarter of $144 million in late 2024, its first profitable quarter since 2022. Despite these challenges, the USPS remains one of the most popular federal agencies, with a 72% approval rating in a recent Pew Research Center survey.

The financial struggles of the USPS are largely tied to the decline of first-class mail, which has been replaced by emails, texts, and online bill payments. However, the rise of e-commerce has led to an increase in package deliveries, providing a potential lifeline for the agency. A privatized USPS could prioritize profitability over public service, leading to higher costs and reduced services for consumers.

4. Opposition to Privatization: Unions and Advocacy Groups Speak Out

The proposal to privatize the USPS has met with fierce opposition from unions representing postal workers, who argue that such a move would harm both employees and the millions of Americans who rely on the service. The American Postal Workers Union (APWU), which represents 200,000 postal workers, issued a statement denouncing the plan as an “outrageous, unlawful attack on a storied national treasure.” The union emphasized that the USPS is a constitutional institution created by Congress to serve all Americans equally, and that privatization would undermine its mission and harm the public.

Other unions, such as the National Association of Letter Carriers (NALC), have also expressed strong opposition to privatization. Brian Renfroe, president of the NALC, which represents 200,000 active employees, warned that privatization would lead to higher costs and longer delivery times for consumers. Renfroe also noted that the USPS’s popularity across party lines has protected it from previous attempts at privatization. “The people of this country, regardless of their political persuasion, love the postal service,” he said. “Regardless of which way they voted, what they did not vote for was the destruction of the Postal Service.”

5. The Role of Politics in the Debate Over the USPS

The debate over the future of the USPS is deeply intertwined with politics, particularly as the 2024 presidential election approaches. The USPS plays a critical role in the electoral process, handling millions of mail-in ballots during elections. Any changes to the agency’s structure or operations could have significant implications for the integrity and accessibility of future elections. The Trump administration’s push to privatize the USPS has led to accusations that the move is politically motivated, with critics arguing that it could undermine the ability of millions of Americans to vote by mail.

Trump has a history of expressing support for privatizing the USPS, describing it as “not the worst idea I’ve ever heard” during his first term in office. While previous attempts to privatize the agency were met with resistance from Congress and the public, the President’s renewed focus on the issue has raised concerns among Democrats and postal workers’ unions. The USPS’s independence and universal service mandate are enshrined in federal law, making it unlikely that Trump could achieve full privatization without Congressional approval. However, the administration’s efforts to consolidate control over the agency have left many wondering about its ultimate goals.

6. The Future of the USPS: A Balancing Act Between Profitability and Public Service

The debate over the future of the USPS reflects a broader tension between profitability and public service. While the agency faces significant financial challenges, it remains a vital part of American infrastructure, providing essential services to millions of Americans. The push to privatize the USPS raises important questions about the role of government in ensuring universal access to critical services, particularly in rural and underserved areas.

As the Trump administration continues to explore options for reforming the USPS, opponents of privatization argue that any changes must prioritize the needs of the public over profit. The USPS’s continued independence and commitment to universal service are essential to ensuring that all Americans, regardless of where they live, have access to reliable and affordable mail delivery. With the support of Congress and the American people, the USPS can continue to serve as a cornerstone of American democracy for generations to come.