U.S. Postal Service could be privatized if Trump has his way

WASHINGTON, D.C.: In recent weeks, President-elect Donald Trump has expressed interest in privatizing the U.S. Postal Service (USPS), according to the Washington Post, which cited three people familiar with the matter.

USPS has faced significant financial struggles, reporting over US$100 billion in losses since 2007. For the fiscal year ending September 30, the agency posted a $9.5 billion net loss-$3 billion more than the previous year-due to increased non-cash workers' compensation expenses.

"When told of the agency's annual losses, Trump said the government should not subsidize the organization," the report stated. Discussions about privatization reportedly included Howard Lutnick, Trump's pick for commerce secretary, during meetings at Mar-a-Lago.

According to the report, preliminary talks about USPS reforms have also occurred within the Department of Government Efficiency, which will be led by Elon Musk and Vivek Ramaswamy.

A USPS spokesperson highlighted efforts to reduce costs, including cutting 45 million work hours and saving $2 billion in transportation expenses over the past three years. The agency is seeking regulatory approval to modernize its mail processing and transportation networks, which it estimates could save up to $3.7 billion annually.

"No policy should be deemed official unless it comes from President Trump or his authorized spokespeople directly," said Karoline Leavitt, a spokesperson for the Trump transition team.

Privatization could have far-reaching implications, particularly for the e-commerce industry, rural consumers, and small businesses. USPS remains critical for "last-mile" delivery services used by companies like Amazon, which delivers to remote areas where private carriers often do not.

According to the Washington Post, Amazon recently pledged $1 million to Trump's inaugural fund and will stream his inauguration on Prime Video.

Trump's transition team is also reportedly reviewing USPS's multibillion-dollar contracts to electrify its fleet, including deals with Oshkosh and Ford for battery-powered delivery trucks and charging stations.

In 2020, Congress authorized a $10 billion loan for USPS as part of a coronavirus relief package, which Trump initially threatened to block.