The U.S. administration is evaluating a proposal to integrate the United States Postal Service (USPS) into the Department of Commerce, potentially altering its operational structure and financial oversight.
During a swearing-in ceremony for Commerce Secretary Howard Lutnick, President Donald Trump stated that a merger could enhance the efficiency of USPS while maintaining its core functions. “We’re thinking about doing that, and it’ll be a form of a merger, but it will remain the Postal Service, and I think it’ll operate a lot better than it has been over the years,” he remarked.
The Postal Service reported a $9.5 billion loss in fiscal year 2024 but recorded $144 million in net income in the first quarter of 2025. To address financial challenges, the agency has advocated for policy reforms, including adjustments to pension funding requirements.
Bringing USPS under the Commerce Department could align with broader discussions on restructuring or privatizing aspects of the agency. Trump previously indicated interest in privatization efforts during a December press conference, stating, “It’s an idea that a lot of people have liked for a long time. We’re looking at it.”
USPS plays a crucial role in last-mile delivery, handling over 7.2 billion parcels in fiscal year 2024. The agency has expanded direct partnerships with shippers under Postmaster General Louis DeJoy, who recently announced plans to step down.
Industry experts have expressed varied perspectives on potential changes. Anthony Pizza, Vice President of Growth and Innovation at parcel carrier SpeedX, noted that USPS ensures mail service to all regions, including rural areas underserved by private carriers. He cautioned that full privatization could lead to higher costs and job losses. Instead, he suggested a model where the agency’s parcel delivery operations are privatized while mail services remain publicly managed, potentially balancing efficiency with accessibility.
Any structural changes to USPS, particularly moves toward privatization, are expected to face significant legislative review and debate in the coming months.
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