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.
Overview
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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CBS News·4M·FAQ
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.
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.
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.
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.
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