President-elect Donald Trump has expressed a growing interest in privatizing the U.S. Postal Service (USPS), according to a Washington Post report on Saturday. The report, citing insiders familiar with the discussions, revealed that Trump views the USPS’s financial struggles as a justification for removing its government subsidy.
The USPS, which has incurred losses exceeding $100 billion since 2007, reported a $9.5 billion net loss for its fiscal year ending September 30, marking a $3 billion increase from the previous year. Much of the loss was attributed to higher non-cash workers’ compensation expenses.
Trump reportedly discussed privatization plans with Howard Lutnick, his nominee for commerce secretary, during a meeting at Mar-a-Lago. Additionally, officials expected to join the Department of Government Efficiency under Elon Musk and Vivek Ramaswamy have also explored potential USPS reforms, sources revealed.
A USPS spokesperson highlighted efforts to cut costs, including reducing 45 million work hours and trimming $2 billion in transportation expenses over the past three years. They also stated that regulatory approval for modernizing the postal network could save the agency $3.6-$3.7 billion annually.
Karoline Leavitt, a spokesperson for Trump’s transition team, emphasized that no policy decisions are final until officially announced by Trump or his representatives.
Privatization of the USPS could have significant repercussions, particularly for the U.S. e-commerce sector and rural communities. Amazon, a major USPS partner for last-mile delivery, and small businesses reliant on affordable shipping options could face disruptions. As the only carrier delivering to remote areas, USPS plays a critical role in serving rural Americans.
Amazon, which announced a $1 million donation to Trump’s inaugural fund, may also face further scrutiny. The Trump transition team is reportedly reviewing USPS contracts with Oshkosh and Ford for electrifying its delivery fleet, potentially seeking to unwind these agreements.
The USPS’s financial struggles have been a contentious issue for years. In 2020, Congress authorized a $10 billion loan for the agency as part of a $2.3 trillion coronavirus relief package, a measure Trump threatened to veto.
If pursued, privatization would represent one of the most significant shifts in USPS’s history, raising questions about the future of affordable and universal mail delivery in the United States.