President-elect Donald Trump is reportedly eyeing the privatization of the U.S. Postal Service (USPS), an institution that has become a glaring symbol of federal mismanagement.
For decades, the USPS has been a shining example of government dysfunction.
Sources close to Trump’s transition team revealed that discussions about major reforms have taken place, with a focus on privatizing the beleaguered agency, which has hemorrhaged over $100 billion since 2007.
The USPS’s financial woes are staggering. In Fiscal Year 2024 alone, the agency reported a net loss of $9.5 billion, a sharp increase from the $6.5 billion loss the previous year, according to Reuters.
These losses, largely driven by outdated operations and bloated compensation expenses, reflect an agency unable to compete in the modern era.
Despite cutting 45 million work hours and slashing $2 billion in transportation costs over the past three years, the USPS remains mired in inefficiency.
More from Reuters:
When told of the agency’s annual losses, Trump said the government should not subsidize the organization, according to the Washington Post.
Trump, who takes office on Jan. 20, has discussed his desire to privatize the Postal Service with Howard Lutnick, his pick for commerce secretary, at Mar-a-Lago, the report said.
People who will work at the Department of Government Efficiency, led by Elon Musk and Vivek Ramaswamy, have also had preliminary conversations about major changes to USPS, the report said, citing two other people familiar with the matter.
A USPS spokesperson said that over the last three years, the company has reduced its operations by 45 million work hours, and cut transportation spending by $2 billion.
The agency is also seeking regulatory approval to modernize its mail processing and transportation network to align with modern practices, which will save between $3.6-$3.7 billion annually, the spokesperson added.
Under Postmaster General DeJoy’s leadership, the agency continues to hemorrhage money.
Postmaster General Louis DeJoy faced a blistering grilling in Congress. During a tense exchange, Rep. Rich McCormick (R-GA) accused DeJoy of “bankrupting” the USPS and failing to restore its reputation.
When Rep. Rich McCormick (R-GA) confronted him on his failures and accused him of “bankrupting” the USPS, DeJoy became combative. Not liking being held accountable, he covered his ears.
McCormick didn’t hold back, declaring, “You bankrupt this through your reputation only. Through your reputation, you are responsible for the fall of the postal service and the lack of accountability… This is the response that the postmaster just gave Congress when he doesn’t like what he hears. Literally covered his ears and gave himself the grade of A.”
DeJoy’s deflection only highlighted the USPS’s ineptitude. Despite advancements in AI and logistics technology, the agency continues to operate like a relic from the 19th century, with many questioning why taxpayers should continue to fund its dysfunction.
Read more:
Postmaster General Louis DeJoy Grilled About USPS Failures, Covers His Ears (Video)
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