Shocking Move: Trump Eyes Privatizing the US Postal Service – What It Means for You

According to three sources with knowledge of the situation, the Washington Post said on Saturday that US President-elect Donald Trump has shown a strong interest in privatizing the US Postal Service in recent weeks. Due in major part to a year-over-year increase in non-cash workers’ compensation expenses, the US Post Office, which has lost over $100 billion since 2007, announced a net loss of $9.5 billion for its fiscal year ended September 30. This loss was $3 billion greater than the previous year.

According to the Washington Post, Trump stated that the government shouldn’t fund the agency after being informed of its yearly losses. At Mar-a-Lago, Trump, who assumes office on January 20, spoke with Howard Lutnick, his choice for commerce secretary, on his intention to privatize the Postal Service. According to the story, which cited two additional persons with knowledge of the situation, big changes to USPS have also been discussed in advance by those who would work at the Department of Government Efficiency, which is headed by Elon Musk and Vivek Ramaswamy.

According to the spokesperson, the agency is also looking for regulatory approval to update its postal processing and transportation network to modern standards, which will result in an annual savings of between $3.6 and $3.7 billion. Requests for comment on the report were not immediately answered by the Trump transition team. Amazon employs the USPS for “last-mile” delivery between its fulfillment facilities and customers, so any attempt to privatize the Postal Service could upset the US e-commerce market, according to the Washington Post.

Since the Postal Service is the sole carrier that will deliver to far-flung areas of the nation, it could potentially harm small companies and rural customers. Amazon just announced that it will broadcast Trump’s inauguration on its Prime Video service and donate $1 million to his inaugural fund. The relationship between Trump and the Postal Service has been strained. His transition team is thinking of terminating the service’s contracts to electrify its delivery fleet, according to sources who spoke to Reuters.

Sources claim that the team is examining ways to terminate the service’s multibillion-dollar agreements for tens of thousands of battery-powered delivery vehicles and charging stations, including those with Oshkosh and Ford. 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.