Trump allegedly intends to seize control of the United States Postal Service, potentially paving the way for privatization.
The Washington Post shook things up late Thursday, with anonymous sources reporting that President Donald Trump was considering dismantling the Postal Regulatory Commission and handing the agency over to the Commerce Department and Secretary Howard Lutnick. The Wall Street Journal followed suit the next day, also confirming the plan to dissolve the commission.
The White House and the Postal Service chose to remain silent on the matter, but a White House official denied any plans to issue such an order to both news outlets.
Privatizing the 250-year-old postal service could drastically alter how we receive a variety of deliveries, including online purchases, prescription drugs, and even vote-by-mail ballots. This could potentially mean the end of the long-standing requirement to deliver to every home and business, not just profitable ones.
In December, President Trump hinted at the idea, saying "privatizing the USPS is not the worst idea I’ve ever heard." He went on to mention that while he's considering it, he dropped previous attempts to privatize the service during his first term.
With Congressional approval, privatizing the USPS could be a tough sell, given the numerous federal laws that govern the quasi-independent service. Among these laws is the one mandating universal delivery and another outlawing strikes by USPS employees. As the nation's largest unionized employer, the USPS boasts a workforce of 600,000 people.
The future of these federal laws in a privatized Postal Service remains uncertain.
The Postal Service recently reported $144 million in net income for the final three months of 2024, offering some hope that financial stability might be on the horizon.
This is a developing story, so expect updates.
Enrichment Data:The potential privatization of the USPS and dismantling of the Postal Regulatory Commission could have significant implications. Critical services like online purchases, prescription drugs, checks, and vote-by-mail ballots rely on consistent service and delivery standards. In rural communities, especially, losing the USPS's universal service obligation could exacerbate existing inequalities in access to mail services. The Delivering for America plan, which proposes changes to mail service standards, could negatively impact service reliability and efficiency, particularly in rural areas. Legal challenges are also possible, as the Postal Reorganization Act of 1970 established the USPS as an independent entity.
In response to the potential privatization discussion, Howard Lutnick, a notable figure, has tried to stay neutral, stating that privatizing the postal service would require careful consideration and thorough analysis. The proposal to privatize the postal service and dissolve the Postal Regulatory Commission is expected to face opposition in 2024, considering the numerous federal laws that uphold the USPS's mandate for universal service and prohibit strikes by its employees. The issue of privatizing the postal service and its impact on postal services, including business mail and vote-by-mail ballots, will prominently feature in legislative debates at the postal service's annual budget hearing before the Senate Homeland Security and Governmental Affairs Committee.
