Trump Plans Takeover of USPS. Privatization Next?

THE NEWS

President Trump is expected to issue an executive order dissolving the US Postal Service leadership and absorbing the organizaton into the Commerce Department. That bold move may be just a first step toward an even more ambitious and controversial goal: privatizing the perpetual money-loser.

USPS has a staggering 650,000 employees, who rise up whenever privatization gains momentum. It's also popular among Americans -- 72% view it favorably, compared just 21% who view it unfavorably, according to a 2024 Pew Research poll.

TIMELINE

November 2024: USPS Reports Massive Loss

• USPS discloses a $9.5 billion net loss for fiscal year 2024, a 46% increase from 2023. Mail volume continues to decline, yet staffing grows, raising questions about fiscal management.

December 2024: Privatization Talks Begin

• Trump privately discusses privatizing USPS with Howard Lutnick, then a transition adviser, as part of broader efforts to shrink federal agencies.

February 18, 2025: DeJoy Announces Resignation

• Postmaster General Louis DeJoy, appointed by Trump in 2020, steps down amid criticism over mail delays and cost-cutting measures.

February 19, 2025: Lutnick Confirmed as Commerce Secretary

• The Senate confirms Howard Lutnick, CEO of Cantor Fitzgerald, as Commerce Secretary. Lutnick is expected to lead USPS restructuring.

February 20, 2025: Takeover Plans Leak

• The Washington Post reports Trump may issue an executive order firing the USPS Board of Governors and placing the agency under Commerce Department control.

• The USPS Board holds an emergency meeting, hiring outside lawyers to challenge the move. The White House denies an imminent order.

February 21, 2025: Trump Confirms Merger Proposal

• Trump told reporters in the Oval Office that he is “considering a merger” of USPS and Commerce to “increase efficiency,” framing it as a fix for financial mismanagement.

REACTIONS

President Trump: “We want to have a post office that works well and doesn’t lose massive amounts of money, and we’re thinking about doing that, and will be a form of a merger, but it’ll remain the Postal Service, and I think it’ll operate a lot better than it has been over the years.”

USPS Board of Governors: Calls the potential takeover “unlawful,” arguing Congress alone holds authority over USPS. Prepares legal challenges.

WHAT'S NEXT

If Trump issues an executive order firing the Board, a court battle is inevitable.

Congress has the power to control the Postal Service under the Postal Clause in the Constitution, bringing into question whether Trump actually has the authority to completely dissolve the agency.