The United States Postal Service (USPS) is once again under scrutiny as financial struggles and operational changes fuel debates about its future.
Following years of mounting losses and delayed deliveries caused by cost-cutting measures, privatization has re-emerged as a talking point under president-elect Donald Trump’s upcoming administration.
In a recent news conference, Trump confirmed a Washington Post report that privatizing the USPS is under consideration, stating, “We’re looking at it,” and calling the idea “not the worst” he’s heard. This echoes Trump’s earlier push for privatization during his first term in 2018, though the effort gained no traction in Congress despite Republican control of both chambers at the time.
According to a recent article published on MSN, USPS’s financial troubles have intensified in recent years. Postmaster general Louis DeJoy, a Trump appointee, introduced the “Delivering for America” 10-year plan in 2021 to help the agency achieve financial stability. Although Congress passed the Postal Service Reform Act in 2022 to eliminate billions in debt, the USPS reported $6.5 billion in net losses for 2024 and expects to lose $6.9 billion in 2025. In response, the agency is pursuing $5 billion in cost cuts, including consolidating mail processing. These changes have reduced transportation costs but caused delivery delays in major markets like Atlanta and Houston.
The USPS remains bound by its “universal service obligation,” requiring baseline service at reasonable prices across the country. However, a Republican-led Congress could potentially redefine this obligation, increasing leverage for privatization advocates.
Despite Trump’s interest, privatizing the USPS is not straightforward. Under the U.S. Constitution, Congress alone holds the power to establish and regulate post offices. While a president can propose reforms, budget cuts or board appointments, significant structural changes like privatization require congressional approval. As financial challenges persist, the debate over the USPS’s future – whether reform or privatization – remains a contentious issue.