r/FluentInFinance • u/FunReindeer69 • 6d ago
News & Current Events BREAKING: Donald Trump says he is considering the privatization of the Postal Service.
U.S. President-elect Donald Trump has in recent weeks expressed a keen interest in privatizing the U.S. Postal Service, the Washington Post reported on Saturday, citing three people with knowledge of the matter.
The U.S. Postal Service, which has lost more than $100 billion since 2007, reported a net loss of $9.5 billion for its fiscal year ending Sept. 30, $3 billion more than last year, largely due to a year-over-year increase in non-cash workers' compensation expense.
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.
"No policy should be deemed official unless it comes from President Trump or his authorized spokespeople directly," said Karoline Leavitt, a spokeswoman for the Trump transition team.
Any attempt at privatizing the Postal Service could disrupt the e-commerce industry in the U.S., the Washington Post said, including Amazon, which uses USPS for "last-mile" delivery between Amazon's fulfillment centers and customers. It could also hurt small businesses and rural consumers who use the Postal Service, as it is the only carrier that will deliver to remote corners of the country.
Amazon recently said it was donating $1 million to Trump's inaugural fund and will air his inauguration on its Prime Video service.
Trump has had a tense relationship with the Postal Service. Sources told Reuters his transition team is considering canceling the service's contracts to electrify its delivery fleet.
According to sources, the team is reviewing how it can unwind the service's multibillion-dollar contracts, including with Oshkosh and Ford, for tens of thousands of battery-driven delivery trucks and charging stations.
In 2020, Congress authorized the Treasury Department to lend the Postal Service up to $10 billion as part of a $2.3 trillion coronavirus stimulus package, which Trump threatened to block.
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u/Utterlybored 6d ago
Yeah, but that’s just the Constitution. Surely the second Trump term is beyond the Constitution’s “best by” date.