President Donald Trump announced Friday that his administration is considering placing the U.S. Postal Service (USPS) under the control of the Commerce Department. The potential move would mark the first time since 1970 that the agency, which currently operates independently, would be overseen by the executive branch.
“We want to have a post office that works well and doesn’t lose massive amounts of money,” Trump said during the swearing-in ceremony of Commerce Secretary Howard Lutnick. “It’ll be a form of a merger, but it’ll remain the Postal Service, and I think it’ll operate a lot better.”
Trump emphasized Lutnick’s business experience as a key factor in the decision, stating, “He’s got a great business instinct, which is what we need, and we think we can turn it around.”
The USPS, founded during the Second Continental Congress in 1775, became an independent agency through the Postal Reorganization Act of 1970 following an eight-day postal strike. Today, the service employs about 640,000 workers, delivering mail and packages across the nation, including remote areas. Despite its essential role, the USPS has faced financial challenges, accumulating $87 billion in losses between 2007 and 2020 due to declining first-class mail volume and retiree benefit costs.
Louis DeJoy, a Republican donor and former logistics executive, has served as Postmaster General since 2020. His tenure has been marked by efforts to cut costs, streamline operations, and implement a 10-year modernization plan, which includes service changes and rate increases. However, DeJoy announced plans to step down, urging the Postal Service Board of Governors to begin searching for his successor.
The USPS Board of Governors, consisting of up to nine members appointed by the president and confirmed by the Senate, oversees the agency. Currently, the board has six members, with three vacancies awaiting Senate approval. The board’s chair, Amber F. McReynolds, was appointed by President Joe Biden, while Derek Kan, the vice chair, served in Trump’s administration.
Trump has long criticized the Postal Service’s financial performance and its relationship with major shipping companies like Amazon. In 2020, he threatened to withhold COVID-19 relief funding unless USPS raised package rates for large customers. More recently, he has considered privatization, citing competition from Amazon, UPS, and FedEx.
While Trump’s latest proposal to integrate USPS into the Commerce Department aims to reduce financial losses, critics argue it could jeopardize the agency’s independence and public service mandate. The plan would require approval from Congress, where lawmakers are divided over the future of the nation’s mail system.
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