Trump has raised the idea of privatizing the Postal Service in talks with Howard Lutnick, his pick for commerce secretary and co-chair of his presidential transition team. These talks took place at Mar-a-Lago, where Trump has been meeting with his transition officials in recent weeks.
Financial losses are the top reason Trump might send the Postal Service packing, as USPS has long been a target for cost-cutting. When informed of the Postal Service's annual financial losses of $9.5 billion for the fiscal year 2024, Trump reportedly stated that the government should not continue subsidizing the agency, according to sources who spoke on the condition of anonymity.
The idea of privatizing USPS would likely face strong opposition from representatives of rural America. The Postal Service’s "universal service obligation" requires that mail and parcels be delivered to every corner of the country, regardless of distance or profitability. This makes it especially crucial in rural areas, where private carriers may be unwilling or unable to provide service due to the remoteness and low population density. Federal officials from Alaska frequently invite postal executives to the state to witness firsthand how essential the Postal Service is to its economy.
While Trump likely lacks the authority to privatize the Postal Service unilaterally, other potential reforms are still on the table. One proposal is narrowing the universal service obligation, a measure that was suggested by officials during Trump’s first term.
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Financial losses are the top reason Trump might send the Postal Service packing, as USPS has long been a target for cost-cutting. When informed of the Postal Service's annual financial losses of $9.5 billion for the fiscal year 2024, Trump reportedly stated that the government should not continue subsidizing the agency, according to sources who spoke on the condition of anonymity.
The idea of privatizing USPS would likely face strong opposition from representatives of rural America. The Postal Service’s "universal service obligation" requires that mail and parcels be delivered to every corner of the country, regardless of distance or profitability. This makes it especially crucial in rural areas, where private carriers may be unwilling or unable to provide service due to the remoteness and low population density. Federal officials from Alaska frequently invite postal executives to the state to witness firsthand how essential the Postal Service is to its economy.
While Trump likely lacks the authority to privatize the Postal Service unilaterally, other potential reforms are still on the table. One proposal is narrowing the universal service obligation, a measure that was suggested by officials during Trump’s first term.
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