With Over $100 Billion In Losses, Trump 2.0 May Privatize US Postal Service

(MENAFN- Live Mint) President-elect Donald trump is exploring the privatization of the US Postal Service, a move that could impact consumer shipping, business supply chains, and federal jobs, The Washington Post reported on Saturday, citing three people familiar with the discussions.

Trump reportedly discussed the idea with Howard Lutnick , his nominee for commerce secretary , and transition officials at Mar-a-Lago. The President-elect has expressed skepticism about continuing government subsidies for the struggling agency, which reported a net loss of $9.5 billion for the fiscal year ending September 30, marking a $3 billion increase from the previous year. The Postal Service's total losses since 2007 have now surpassed $100 billion.

The report also notes that earlier this month, Trump convened a group of transition officials to seek their opinions on the possibility of privatizing the agency.

The report further claims that Trump has expressed skepticism about continued government subsidies for the mail agency amid its annual financial losses. Sources quoted in the report said Trump has made clear his view that“the government should not subsidize the organization.”

The anonymous sources cited by the report indicate these conversations remain exploratory and private, as the administration transitions into office ahead of its January 20th inauguration.

The US Postal Service reported a net loss of $9.5 billion for the fiscal year ending September 30, marking a $3 billion increase compared to the previous year. Since 2007, the US Postal Service has accumulated losses exceeding $100 billion, underscoring ongoing financial challenges.

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.

Privatizing the Postal Service could have major consequences for the US e-commerce industry, the report noted. Amazon, in particular, could be affected, as it relies on USPS for "last-mile" deliveries from fulfillment centers to customers. Additionally, small businesses and rural consumers could face challenges, as USPS is the sole carrier that provides delivery service to remote areas of the country.

Amazon recently contributed $1 million to Trump's inaugural fund and will broadcast his inauguration on its Prime Video platform.

Amid reports of President-elect Donald Trump's interest in privatizing the US Postal Service, the agency has defended its financial strategies, emphasizing recent cost-cutting measures as part of its ongoing modernization plan.

According to the news publication's report, in response to questions about the potential privatization, a Postal Service spokesperson stated that the agency has successfully cut 45 million work hours over the past three years and saved $2 billion in transportation spending as part of its 10-year modernization plan.

The spokesperson, as cited by the report, added that the agency is also pursuing regulatory approval to adjust its mail processing and delivery schedules to better align with private-sector practices.

“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 6-days-a-week in an efficient and financially sustainable fashion as required by law,” the agency said in a statement, according to the report.

MENAFN14122024007365015876ID1108993360