Trump Considers Merging Postal Service with Commerce Department
Merger Plan and Legal Concerns
Former President Donald Trump announced plans to explore merging the United States Postal Service (USPS) with the Department of Commerce. Democrats have raised concerns, claiming that such a move would violate federal law.
Trump emphasized the postal service's financial losses and stated, "We're thinking about doing that, and it'll be a form of a merger." He appointed Secretary of Commerce Howard Lutnick and others to investigate the feasibility.
Democrats, including Senator Gary Peters, have argued that any attempt by Trump to seize control of the postal operation, which employs approximately 650,000 people, would be illegal. Under a reorganization in 1970, the USPS became an independent agency within the executive branch, free from direct political interference.
Financial Challenges and Restructuring
USPS has faced significant financial losses, exceeding $100 billion since 2007. Former Postmaster General Louis DeJoy, appointed during Trump's first term, warned of the need for continued cost-cutting measures, including staff reductions.
The decline in first-class mail volume, attributed to the rise of electronic communications, has contributed to the postal service's financial challenges. Since 1997, first-class mail volume has decreased by 80%. In response, the postal service announced a restructuring plan in 2021 aiming to mitigate losses.
To support USPS, President Joe Biden provided $50 billion in financial assistance over a decade, and Congress separately forgave a $10 billion loan. Despite these measures, USPS projects an $80 billion loss and plans additional cuts to address the financial gap.
