USPS Privatization Under Consideration Again, Trump Says

President-elect Trump said Monday he would once again consider privatizing the U.S. Postal Service, opening the door to a controversial and failed proposal from his first term.

Trump was vague in his assessment of the idea during a news conference at his Mar-a-Lago resort in Florida, saying in response to a question that taking the USPS out of government control was not the way to go. worst idea. He added that it was something we were looking at.

There's a lot of talk about privatizing the Postal Service, Trump said. It's very different today, between Amazon, UPS, FedEx and everything else you didn't have. But we talk about it. It's an idea that many people have appreciated for a long time.

The suggestion, which the Washington Post reported was under consideration, emerged during Trump's first term as part of his plan to reorganize the federal government. This followed an executive order issued by Trump in 2018 that created a task force to recommend a path forward to put the cash-strapped agency on firmer financial footing.

The Office of Management and Budget suggested the Postal Service implement these recommendations to get back into shape before being sold to the private sector. The suggestion was quickly met with a bipartisan rebuke in Congress, and Trump's task force declined to make a similar proposal.

A privatized postal service would have a significantly lower cost structure, be able to adapt to changing customer needs and make business decisions without political interference, and have access to private capital markets to fund operational improvements without burdening taxpayers , the White House said in its report. Proposition 2018. The private operation would be incentivized to innovate and improve services to Americans in every community.

He suggested that a privatized postal company would be able to cut services, raise rates and offer less generous salaries and benefits to its employees.

The Constitution first provided for the existence of a postal operation and the agency faced a legal obligation to deliver to every address in the country six days a week. It is also responsible for covering its own expenses outside of the limited appropriations it receives for providing specific services to the government, something it has failed to do for more than a decade.

Still, there is bipartisan support for robust postal service. In recent weeks, myriad lawmakers from both parties have criticized Postmaster General Louis DeJoy for his plans to slow delivery of some mail and reduce service standards. Legislators representing states or districts with significant rural populations have been particularly supportive of improving and expanding the USPS.

Although Trump has alluded to private companies like FedEx and UPS, they do not face the same obligation to deliver to all unprofitable areas as the Postal Service. They have historically relied on the USPS network to bolster their offerings and currently do not offer mail delivery, as this is reserved for the government agency.

Given the bipartisan support for a public USPS, carrying out postal privatization remains a daunting task and an effort unlikely to succeed. In 2022, Congress approved a major legislative overhaul that took tens of billions of dollars of debt off the USPS's books and showed continued interest in overseeing DeJoy's reform efforts.

DeJoy vowed earlier this month to keep dropping [his] way until someone pulls me out of here.

Sen. Rand Paul, R-Ky., who next year is expected to take charge of the Senate Homeland Security and Governmental Affairs Committee that oversees the USPS, recently told DeJoy he should stop hiring government employees and contract out new staff. Rep. James Comer, R-Ky., who chairs the House Oversight and Accountability Committee, told DeJoy last week that major reforms could take place in the Trump administration and that these may or may not be beneficial to the postal service. He added, however, that he was on the side of DeJoys and the USPS.

Both Paul and Comer cited the Postal Service's continued financial losses as the cause of their concern. DeJoy had hoped to put the USPS back in the black by 2023, but he has not yet done so and the agency reported $9.5 billion in losses in fiscal 2024. She projects that the trend will continue in fiscal 2025.

President Biden on Monday nominated Anton Hajjar to serve on the USPS Board of Governors, joining his three other pending nominees. Two of these individuals, William Zollars and Gordon Hartogensis, are Republicans. The Senate has a few precious days before its session ends and it seems unlikely they will spend time approving their nominations. The board, which has largely supported DeJoy's reform efforts, currently has four members appointed by Biden and two appointed by Trump.

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