We all know that the U.S. Postal Service (USPS) is in deep trouble. Despite the Postmaster General Louis DeJoy finally resigning, the threat of privatization still remains. President Donald Trump and tech entrepreneur Elon Musk have both proposed privatizing the service. This concept has fueled a recent surge of protests around the country. Since its privatization in 1970, the USPS has been largely self-funded. Now, it’s reeling from a budget crisis and a tsunami of public criticism about where it should go next.
In February, long before he was elected, President Trump made a big move. He recommended that the USPS be placed under the supervision of the Commerce Department. Musk echoed support for privatization, stating, "We should privatize anything that can reasonably be privatized." Their statements and policy proposals have stoked the flames of debate over the worth of our postal service, igniting a national outcry. Demonstrators have rallied behind slogans like "The post office belongs to the people, not billionaires," and "U.S. mail not for sale."
Despite these challenges, the USPS reported a $144 million profit last quarter, which was attributed to DeJoy's 10-year modernization plan aimed at stemming longstanding financial losses. The financial picture for the USPS has not improved. In fact, between 2007 and 2020, the USPS lost $87 billion. The transformational modernization plan would refresh and reimagine its operations and delivery of service along its sprawling, long network.
The USPS employs approximately 640,000 workers who are responsible for delivering mail across diverse terrains, from bustling urban centers to remote rural areas and even distant islands. The organization operates on an eye-watering $78.5 billion budget, mostly powered by customer fees. In fiscal year 2023, Congress provided an additional, modest annual appropriation of $50 million undergirding free and reduced-cost mailings.
DeJoy’s resignation has been replaced with pressure USPS Board of Governors to act. In doing so, they have hired an international consulting firm to identify his successor as the 76th postmaster general & CEO. Union leaders are hopeful that the new appointee will uphold the modernization efforts while exploring additional services such as basic banking, electric vehicle charging, and U.S. Census work.
Brian L. Renfroe, President of the National Association of Letter Carriers, the importance of increasing public awareness. He pointed out that any possible changes to the USPS will affect all of us.
"It's a terrible idea for everyone that we serve," Renfroe stated.
This sentiment reflects growing alarm about the potential impact of privatization on the existing services to the millions of Americans who depend on postal services every day.
Since 1970, the USPS has operated as an independent, quasi-governmental agency. Its unique governance structure allows it to pay for operations through customer-generated revenue — lessening its dependence on taxpayer funding. As discussions of its future rage on, its financial solvency is perhaps the biggest concern.
