What are the financial challenges facing the U.S. Postal Service that might necessitate a merger with the Commerce Department?

The U.S. Postal Service faces significant financial challenges, including substantial annual deficits due to declining first-class mail revenue and high retiree benefit costs, accumulating $87 billion in losses from 2007 to 2020.

How would placing the USPS under the Commerce Department potentially affect its operations and services?

Placing the USPS under the Commerce Department could lead to changes in governance and potentially prioritize cost-cutting measures or privatization, which critics fear might undermine service reliability, especially in rural areas.

What role does the current leadership of the Commerce Department play in this potential merger?

The Commerce Department, now led by Secretary Howard Lutnick, is central to the proposed merger. President Trump highlighted Lutnick's business acumen as crucial for addressing USPS's financial struggles.

How does the resignation of Postmaster General Louis DeJoy impact the potential merger?

The resignation of Postmaster General Louis DeJoy adds uncertainty to the USPS's leadership at a critical time. However, it does not directly impact the decision to merge with the Commerce Department, which is driven by broader governance and financial concerns.

4 sources·Politics

Trump Administration Considers Merging USPS with Commerce Department

The Trump administration is exploring an executive action to merge the U.S. Postal Service with the Commerce Department amidst concerns over its finances and governance.

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A consolidation with Commerce would be a major change for the agency responsible for delivering mail across the country.
Trump floats merging ‘tremendous loser’ Postal Service with Commerce Department
New York Post·1M
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Leans Right
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Under DeJoy's original plan, introduced in 2021, the USPS aimed to turn a profit in fiscal 2024 but instead reported two consecutive years of increasing losses.
Trump administration considering moving U.S. Postal Service under Commerce Department
CBS News·1M
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Center
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However, there was no comment on whether the postal service – which polls have shown is the US’s most popular agency after the National Park Service among Democrats and Republicans alike – would be privatised as part of the administration’s drive to slash public spending and reduce the federal workforce.
Trump is reportedly mulling over disbanding US Postal Service leadership
The Guardian·1M
Reliable
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Leans Left
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Reports last fall during the presidential campaign claimed that Trump, if reelected, would radically alter the postal service, which brought an immediate critical response at the time from the American Postal Workers Union, which also responded to the new report.
White House: Trump Not Taking Over Postal Service
Newsmax·1M
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Right
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Feb 21st, 2025, 8:27 PM ET

Summary

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The Trump administration is reportedly considering transferring the U.S. Postal Service (USPS) under the Commerce Department, led by Howard Lutnick, following ongoing financial losses. Postmaster General Louis DeJoy recently announced his resignation, and concerns are mounting about potential negative impacts on mail services. The White House denied reports of an executive order targeting USPS's independence. Critics, including lawmakers and labor unions, have expressed fears that such a move would undermine service reliability and prioritize privatization over public needs. The USPS, a historic agency, is facing challenges related to substantial annual deficits.

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