The US Postal Service has been struggling for years. Now Trump’s talking about privatizing it

[MsKreed 1,715]

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In February, Trump said he may put the U.S. Postal Service under the control of the Commerce Department in what would be an executive branch takeover of the agency, which has operated as an independent entity since 1970.

“We want to have a post office that works well and doesn’t lose massive amounts of money,” Trump said during the swearing-in ceremony for Commerce Secretary Howard Lutnick. “We’re thinking about doing that. And it’ll be a form of a merger, but it’ll remain the Postal Service, and I think it’ll operate a lot better.”

While he didn’t say anything about privatization at the event, the president has voiced support for the idea in the past. In December, he suggested privatizing the service given the competition it faces from Amazon, UPS, FedEx and others.

“It’s an idea a lot of people have had for a long time. We’re looking at it,” the president said.

 

Read more HERE

 

What changes do you think would help the USPS operate more effectively and efficiently?

[Chris 3,699]

Do we really need Saturday deliveries?

[MsKreed 1,715]

For over 200 years, the USPS was self-funded and all its operating expenses were paid for through its own revenue generated by postage costs. It was the only governmental agency that never received a penny of taxpayer money. 

Personally, I feel like both political parties have been deliberately trying to get the USPS to fail for decades.....and some others seem to agree:

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In 2006, Congress passed a law that imposed extraordinary costs on the U.S. Postal Service. The Postal Accountability and Enhancement Act (PAEA) required the USPS to create a $72 billion fund to pay for the cost of its post-retirement health care costs, 75 years into the future. This burden applies to no other federal agency or private corporation.

If the costs of this retiree health care mandate were removed from the USPS financial statements, the Post Office would have reported operating profits in each of the last six years. This extraordinary mandate created a financial “crisis” that has been used to justify harmful service cuts and even calls for postal privatization. Additional cuts in service and privatization would be devastating for millions of postal workers and customers.

 

Source.

The mandated 75yr healthcare fund aside.....the USPS brings in a significant revenue. And with that in mind, I think dems/reps wish to see it fail for different reasons.

The republicans are historically suspected of wanting to see it fail to justify privatization. Meanwhile democrats likely relish the idea of pulling the USPS huge revenue into the general fund to pay for other stuff.

 

I’d like Congress to just stop actively sabotaging the USPS with their unprecedented mandates and refusal to approve postage rate increases in a reasonable manner.

I’d suggest two changes to help the USPS get its budget back under control:

First......jack the cost of a stamp up to $2 then tie it to inflation. Parcel delivery is already close to commercial "competitors" and UPS, DHL and FedEx charge something like $10-$15 for an envelope, so $2 is still a deal.

23 minutes ago, Chris said:

Do we really need Saturday deliveries?

Funny you'd say that

My plan would be even more dramatic......change delivery of regular mail from six to three days a week. Alternating, so only half of the routes are travelled each day. Fewer workers and fuel and mileage on the vehicles is cut in half.

No one will care if their non-priority snail mail, junk and flyers show up every other day instead of every day. And a one of the surplus drivers/vehicles could have an "as needed" service to still deliver the priority and registered, etc on the "off" days. 

Edited March 27 by MsKreed

[Chris 3,699]

Yeah and “every other day” model crossed my mind as well. 

Many times there’s like one, maybe two pieces of mail in our mailbox and a lot of times half of it ends up going directly into the trash. 

8 hours ago, MsKreed said:

First......jack the cost of a stamp up to $2 then tie it to inflation.

You can forget a Christmas card from our house then LOL!

I’ve questioned why we still bother with that for a couple of years now. 

[MsKreed 1,715]

2 hours ago, Chris said:

You can forget a Christmas card from our house then LOL!

That's the only time when a rate hike would have much effect on anyone.

 

2 hours ago, Chris said:

I’ve questioned why we still bother with that for a couple of years now. 

I've struggled with that as well. Didn't send any last year and a few times in the last decade I've skipped it.

Not due to cost. It was just that there was enough going on for the holidays that by the time I got around to buying them, I it seemed like I ran out of time to get them addressed and mailed. 

 

I'd imagine that greeting card companies have been feeling consumers' declining "interest" in all cards (even as the price of cards themselves are getting out of control).  I suppose some smart businesses could leverage bulk mail rates and offer some cards with postage paid envelopes. 

[MsKreed 1,715]

Oh...and as I was poking around to see if there were any details on what the USPS "overhaul" might include I found an article on NPR. 

While the story is mostly focused Postmaster General Louis DeJoy is stepping down, the very very last line is a disclaimer "editor's note":

Quote

Editor's note: USPS is a financial supporter of NPR.

I wonder how many other causes receive financial support from the USPS.....while the agency's appointed officials publicly testify that they are falling into unsustainable debt? 

[Chris 3,699]

On 3/27/2025 at 9:03 AM, MsKreed said:

I wonder how many other causes receive financial support from the USPS.

And if I recall correctly, there's advertising campaigns now and then. WTF? Is there actually competition making this necessary?

[MsKreed 1,715]

I guess I do recall seeing a few commercials, but didn’t feel some advertising was a wasteful expense.

As long as it’s not $10 million SuperBowl spots....ad campaigns can be a legit expense for their “mission” and operations.

They actually do have some competitors (UPS, FedEx, DHL) for stuff other than a #10 envelope....and it’s reasonable to advertise so businesses remember they’re competitive option for some stuff. And some of the online and ancillary services that people may not be aware of.

But unrelated BS like helping fund public radio or charitable “donations” are completely indefensible when taxpayers are bailing them out to stay in business.  I get that Congress dumping the outrageous $50 billion debt mandate for healthcare wasn’t within their control. Bush never should have signed that mandate, and it should be repealed (or at least reduced).

But shelling money out for elective (non-postal related) expenses should have been the first shit cut.

[Beekeeper 117]

Maybe if Frank mailed was paid for, they would be more solvent.  All the junk mail from the senators, congressman, government agencies is called Frank Mail.  It is sent free. Senators, Congressmen, etc. do not pay a penny for any of their advertisements..which of course gives the incumbents a HUGE advantage when it's election time.

I agree with the every other day and laying off or encouraging retirement for a lot.  In public teaching retirement, every few years, a new system is set up.  The new teachers are required to join it.  When I arrived in NY, it was Tier 4.  New teachers are in Tier 6.  Each one is closer to a 401K with district matching..The postal workers have the Federal Government good health insurance and retirement.  To my knowledge it has never been adjusted. When it becomes privatized, that's the first thing they'll do.

[MsKreed 1,715]

13 hours ago, Beekeeper said:

Maybe if Frank mailed was paid for, they would be more solvent.  All the junk mail from the senators, congressman, government agencies is called Frank Mail.  It is sent free. Senators, Congressmen, etc. do not pay a penny for any of their advertisements..which of course gives the incumbents a HUGE advantage when it's election time.

Absolutely.  Those mailers only serve as free campaign advertising. 

I do understand (but don't agree with) the argument that constituents are entitled to "updates" from their elected officials and to receive information on what those officials are doing on their behalf. But we also pay them a fair salary that they can pay their own postage from.  

If they truly believed their own BS excuse that "public awareness" of government actions is some inalienable right, then it would not exclude state and local levels of government from the policy. 

 

13 hours ago, Beekeeper said:

I agree with the every other day and laying off or encouraging retirement for a lot.  In public teaching retirement, every few years, a new system is set up.  The new teachers are required to join it.  When I arrived in NY, it was Tier 4.  New teachers are in Tier 6.  Each one is closer to a 401K with district matching..The postal workers have the Federal Government good health insurance and retirement.  To my knowledge it has never been adjusted. When it becomes privatized, that's the first thing they'll do.

 While the fund balance of the The New York State and Local Retirement System (NYSLRS) system occasionally fluctuates, it is very solvent and continues on an upward trend (currently at $270 billion) even as new retirees keep being added and older retirees have longer life expectancies.  I don't know for sure how the federal retirement fund compares to NYS, but there haven't been headlines warning that the federal retirement fund is ready to "go bust" (like we see for SS and USPS, etc). 

 

USPS employees the same retirement and health insurance benefits as other government workers. But while the benefits haven't changed......Congress did change how the healthcare coverage is funded. 

Employee healthcare insurance premiums for all federal (and state) agencies (including USPS) are an ongoing anticipated expense that's negotiated and budgeted annually.

But only the USPS is required to borrow and accumulate billons and billions of dollars for anticipated healthcare benefits for future employees who won't even be born for several decades

 

On 3/26/2025 at 8:49 PM, MsKreed said:

 

Quote

 

In 2006, Congress passed a law that imposed extraordinary costs on the U.S. Postal Service. The Postal Accountability and Enhancement Act (PAEA) required the USPS to create a $72 billion fund to pay for the cost of its post-retirement health care costs, 75 years into the future. This burden applies to no other federal agency or private corporation.

If the costs of this retiree health care mandate were removed from the USPS financial statements, the Post Office would have reported operating profits in each of the last six years. This extraordinary mandate created a financial “crisis” that has been used to justify harmful service cuts and even calls for postal privatization. Additional cuts in service and privatization would be devastating for millions of postal workers and customers.

Source.

 

And you're correct that it's a safe bet that the mandate will disappear if the USPS is either privatized or absorbed by Congress into the general budget....since no other federal agencies or any private corporations have this crazy requirement. 

[Chris 3,699]

On 3/28/2025 at 7:53 PM, MsKreed said:

I guess I do recall seeing a few commercials, but didn’t feel some advertising was a wasteful expense.

Just yesterday morning on NPR they were doing a piece on stamp prices possibly rising again. At the end they mentioned that the USPS is a financial supporter of NPR.

Why?!?

[Beekeeper 117]

I agree.  I refuse to give a  penny to the NPR.  Every show is brought to you by some corporate entity.  USPS is no longer a viable business model.  Cut mail carriers in half and deliver 3 days a week...Maybe not a complete fix, but definitely a good beginning.  With all the people that pay and get bills online, no one needs daily mail.