President-elect Trump is once again considering privatizing the United States Postal Service (USPS), according to a Washington Post report over the weekend. This proposal aligns with Trump’s broader vision of shrinking the federal government’s budget and eliminating taxpayer-funded subsidies for inefficient agencies.
Three individuals familiar with Trump’s discussions revealed that the president-elect recently met with his Commerce Secretary pick, Howard Lutnick, to explore the idea. The USPS, while technically self-funded, received around $50 billion in financial relief in 2022 as it continues to grapple with massive annual losses. In fiscal year 2024 alone, the agency recorded a staggering net loss of $9.5 billion, following a $6.5 billion loss in 2023. These deficits have reignited Trump’s push for reform.
Trump has been vocal about the USPS’s inefficiencies for years. During his first term, he labeled the agency “a joke” and criticized it as Amazon’s “Delivery Boy,” pointing out how Amazon uses the USPS for “last mile” deliveries to rural homes and businesses. In 2018, the Trump administration proposed privatizing the USPS, arguing that its “extremely high fixed costs” make it unsustainable. The proposal stalled in Congress, but Trump appears ready to revisit the issue with renewed vigor.
Privatization would fundamentally change how the USPS operates, potentially ending its “universal service obligation” that requires it to deliver mail to every address in the country, including remote rural areas, six days a week. Critics argue that this obligation is essential for maintaining equal access to mail services, while Trump and his allies see it as a costly burden on taxpayers.
A USPS spokesperson responded to the renewed privatization talk by emphasizing the agency’s ongoing 10-year modernization plan. The initiative aims to reduce spending and work hours while maintaining consistent service. “The United States Postal Service is already engaged in an initiative to ensure that we can provide our customers with a high level of service to every delivery address in the nation at least six-days-a-week in an efficient and financially sustainable fashion as required by law,” the statement said.
Trump’s proposal could dovetail with the efforts of his new Department of Government Efficiency (DOGE), led by Elon Musk and Vivek Ramaswamy. The goal of DOGE is to streamline government operations, cut wasteful spending, and introduce an entrepreneurial mindset to federal agencies. The USPS, with its long history of financial losses, is a prime target for this initiative.
In addition to USPS reform, Trump has pledged to dismantle the Department of Education, transferring control of education programs back to the states. “They can do it for less than half [the funding], and you will have those states competing with the best countries,” Trump said during the campaign.
If Trump proceeds with these plans, his administration will likely face fierce opposition from Congress and public-sector unions. However, his commitment to reining in government inefficiency remains a cornerstone of his second-term agenda.
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