What happens if the USPS does go private? Here's what you need to know
- The United States Postal Service, which delivers millions of letters and packages daily, is facing potential privatization.
- Privatization could lead to reduced service and higher prices, especially in rural areas that rely heavily on USPS.
- The USPS has been operating at a loss, prompting discussions about cost-cutting measures and potential restructuring.
The United States Postal Service picks up, processes and delivers hundreds of millions of letters and packages every single day, operating as a backbone of a trillion-dollar mailing industry.
But the USPS is operating at a loss and has been for a long time. Mail workers are protesting and raising alarms the privatization could save money now but severely impact underrepresented communities.
But how would the privatization of the USPS impact customers? Here's what you need to know.
What type of agency is the USPS?
The Postal Service was remodeled under the Postal Reorganization Act of 1970, moving from a cabinet department to an independent agency under the executive branch with a Board of Governors. The President can nominate members to the board but cannot direct operations.
Rural towns unequally served
Private companies are not held to the service obligations the USPS upholds, even at a loss. Private companies do not have to set a minimum level of service in all areas, making them more likely to deliver to areas with more people, more places, and more profit.
For rural areas which rely on the post office as their sole means for getting letters, medical prescriptions and equipment through the mail, that means prices may rise to reflect the more distance between deliveries, which cuts profit compared to urban settlements.
According to USAfacts.org, free mail delivery from the post office dates back to the summer of 1902 and has made the post office a staple of these smaller communities to connect with the rest of the world.
Rural areas may only be home to 16% of the United States population, but 57% of post offices are in rural areas, which compromise almost 88% of the area the USPS covers.
Mail outgoing and incoming to rural regions will likely be delayed, or could completely cut service – since law requires the USPS to deliver to all addresses, not just ones that turn profit.
Does Donald Trump want to privatize the post?
In the past, President Donald Trump has mulled over the idea of bringing the USPS under the wing of the Department of Commerce to save money,
He brought up the idea again at the swearing-in ceremony for Secretary of Commerce Howard Lutnick on Feb. 24.
“It’ll remain the Postal Service, and I think it'll operate a lot better than it has been over the years,” Trump said. “It's been just a tremendous loser for this country."
The Washington Post previously reported President Trump planned to disband the US Postal Service’s Board of Governors and place the agency under direct control under Lutnik. The post also reported on the plan to dissolve the commission, citing government officials.
The postal service is losing money
By the end of 2024, the agency had around $8.1 billion under its name; predictions estimate the agency will lose $6.9 billion of it by the end of 2025. The loss comes from the fact the postal service can no longer borrow from the Treasury Department after hitting its $15 billion limit.
The postal service currently funds itself without taxpayer dollars through the sale of postage stamps and products but warns that any changes could result in limited access, reduced services and increased costs. While online shopping has caused an uptick in usage, less letters are being sent likely due to the modern age of instant text messaging and emails.
DOGE cuts
On March 13, outgoing DeJoy negotiated with the Department of Government Efficiency, or DOGE, to cut 10,000 out of 640,000 postal service jobs, following President Donald Trump in February ruminating over bringing the postal service under the Department of Commerce.
In a letter to congress, DeJoy said Elon Musk’s agency would help usher a “historic level of transformational change,” reducing costs by issues like retirement plans, worker comp costs, infrastructure of post offices and postage problems.
DeJoy, who was appointed in 2020 by Trump is the mind behind the "Delivering for America" plan, announced his plan to leave the position on Feb. 19 to the Board of Governors after a tumultuous five years in power through covid.
Under DeJoy, the post made $144 million in profit in the first quarter of 2025, compared to a loss of $2.1 billion the quarter in 2024.
Claire Grant writes about business, growth and development and other news topics for The State Journal-Register. She can be reached at CLGrant@gannett.com; and on X (Formerly known as Twitter): @Claire_Granted