Trump Administration Moves to Overhaul US Postal Service, Raising Privatization Concerns

The Trump administration is reportedly preparing to fire members of the independent board that oversees the U.S. Postal Service (USPS), a move that could lay the groundwork for privatization, according to multiple reports.

Citing anonymous sources, The Washington Post first reported that Trump plans to disband the Postal Regulatory Commission and place the agency under the direct control of the Commerce Department, led by Secretary Howard Lutnick. The Wall Street Journal also confirmed similar details, citing government officials.

Adding to the shake-up, Postmaster General Louis DeJoy is expected to resign ahead of a potential privatization effort aimed at addressing long-standing financial struggles within the USPS.

Neither the White House nor the Postal Service has responded to requests for comment. However, a White House official denied to both The Post and The Journal that Trump intends to sign an order for the USPS overhaul.

Potential Impact of Privatization

Privatizing the USPS, a 250-year-old institution that predates the formation of the United States, could fundamentally alter mail and package delivery. The shift could impact everything from online shopping shipments to prescription drug deliveries, checks, and vote-by-mail ballots.

One major concern is whether privatization would end the USPS’s long-standing requirement for universal delivery, which mandates service to every home and business in the country, not just profitable locations. Even private delivery companies like UPS and FedEx rely on the Postal Service for “last mile” deliveries to homes, meaning changes could have a ripple effect on the shipping industry.

Trump previously explored privatization efforts in 2018 but dropped the plan during his first term. However, he recently revisited the idea. In December, he called privatizing the USPS “not the worst idea I’ve ever heard,” adding, “It’s an idea that a lot of people have liked for a long time. We’re looking at it.”

Can Trump Privatize the USPS Without Congress?

While Trump’s administration may be taking steps toward privatization, fully selling off the USPS would require Congressional approval, given that the agency operates under a complex web of federal laws.

Among those laws are mandates for universal service and a ban on USPS employee strikes—key protections that could be at risk if privatization moves forward. With over 600,000 unionized workers, the Postal Service remains one of the largest unionized employers in the U.S.

Despite ongoing financial struggles, the USPS recently reported $144 million in net income for the last quarter of 2024, signaling potential stability amid the privatization debate.