President Trump is considering moving the US Postal Service under the control of his administration by terminating the service's governing board members and placing the agency under the control of the Commerce Department and Secretary Howard Lutnick, according to a Washington Post report. Members of the bipartisan board are appointed by the president and confirmed by the Senate.
Quick History of the USPS:
- Before 1970, the U.S. Post Office Department operated as a traditional government agency but faced increasing financial strain, inefficiency, and political interference.
- By the 1960s, mail volume surged, but outdated infrastructure, low worker wages, and poor working conditions led to widespread dissatisfaction among postal employees.
- In March 1970, postal workers in New York City initiated a massive strike, which quickly spread across the country, disrupting mail delivery and prompting federal intervention.
- In response, Congress passed the Postal Reorganization Act of 1970, which transformed the Post Office Department into the United States Postal Service (USPS)—an independent, non-partisan, self-sustaining agency designed to operate with greater flexibility while still serving the public interest.
- These actions removed direct political control over USPS operations, making it a mostly self-sustaining entity funded primarily through postage and services rather than exclusively taxpayer dollars. The core mission of USPS is neutral and focused on universal mail service rather than advancing any political agenda.
Back to the Future:
Trump told reporters Friday afternoon that Lutnick would be “looking at” the USPS and there would be “a kind of merger.” “He’s got a great business instinct, which is what we need, and he’ll be looking at it, and we think we can turn it around.”
The White House denies the Washington Post report, however, the USPS board is taking the rumor seriously enough that it's already retained outside legal counsel. Their plan is to sue the White House if Trump were to remove members of the board or attempt to alter the agency's independent status.
Last week, Postmaster General Louis DeJoy sent a letter to the board indicating his plans to step down. USPS reported a net loss of almost $10B in 2024, compared to a net loss of $6.5B the prior year.
However many argue that USPS’s massive net losses over the past two decades are largely tied to the requirement that it pre-fund retiree health benefits for the next 75 years, a financial burden no other federal agency or private business has ever faced.
So is the USPS going private?
The recent reports have resurfaced rumors that President Trump plans to take the postal service private.
Trump explored the idea of privatizing the USPS in his first term, going as far as issuing an executive order to create a task force to examine the agency's operations and financial struggles, however, Congress did not support privatization, so the efforts hit a brick wall. Now both the House and Senate are Republican led, so there would likely be less friction.
As recently as December 2024, then President-elect Trump said privatizing the USPS is “not the worst idea I’ve ever heard.”
However, in the past few days, Trump has not made any indication that he plans to privatize the agency. At Lutnick's swearing in ceremony on Friday afternoon, Trump confirmed he wants to see changes at the USPS, as well as an oversight role for Lutnick, but did not specifically mention privatization.
The reality is, whether the USPS is stripped of its independent status, made private, or left as-is — e-commerce merchants and consumers should expect even more substantial price hikes during the next four years, as the Trump administration seems to be focused on making the agency fully financially self-sustaining.