RUMOR: Is Trump going to privatize the Post Office?
TRUTH: While there has been a suggestion by DOGE on doing that, no moves in that direction have been made. Trump has however suggested moving the USPS under the Commerce Department, to curb ongoing financial losses, in what would be an executive branch takeover. USPS has operated as an independent entity since 1970 but has often struggled financially, a problem further compounded by soaring inflation.
Postmaster General Louis DeJoy stepped down last month after serving 5 years in office. Before leaving, DeJoy informed Congress that he signed an agreement with DOGE and the General Services Administration (GSA) to help USPS cut costs and improve operations, noting the need for deep reform amid $100B in past losses and $200B in projected future losses if nothing was done. Deputy Postmaster General Doug Tulino is serving as interim chief while a permanent replacement is chosen to captain this sinking ship.
DeJoy cited “mismanagement” of their Worker’s Compensation Program and self funded retirement assets and obligations, as well as unfunded legislative man- dates and burdensome regulatory requirements as areas that DOGE and the GSA will be scrutinizing.
As part of organizational restructuring, 10,000 postal workers will be offered early retirement. This follows a 2021 workforce reduction of 30,000 under the Biden administration. The service currently employs 640,000 workers.
To increase revenue, USPS anticipates a 7.4% mailing services rate hike on July 13th of this year, so you might want to invest in some of those “Forever Stamps” before the cost goes up 5 cents a piece.
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