President-elect Donald Trump is reportedly eyeing the privatization of the U.S. Postal Service (USPS), an institution that has become a glaring symbol of federal mismanagement.
For decades, the USPS has been a shining example of government dysfunction.
Sources close to Trump’s transition team revealed that discussions about major reforms have taken place, with a focus on privatizing the beleaguered agency, which has hemorrhaged over $100 billion since 2007.
The USPS’s financial woes are staggering. In Fiscal Year 2024 alone, the agency reported a net loss of $9.5 billion, a sharp increase from the $6.5 billion loss the previous year, according to Reuters.
These losses, largely driven by outdated operations and bloated compensation expenses, reflect an agency unable to compete in the modern era.
Despite cutting 45 million work hours and slashing $2 billion in transportation costs over the past three years, the USPS remains mired in inefficiency.
More from Reuters:
When told of the agency’s annual losses, Trump said the government should not subsidize the organization, according to the Washington Post.
The Unites States Postal service is just that, a service provided by the government. It was never meant to be a profitable business.
It’s one of the earliest forms of government control of information. Between the time you mail it until it’s delivered, USPS owns it.
The U.S. Postal Service (USPS) budget includes several components, including:
Annual appropriation
Congress provides an annual appropriation to compensate the USPS for revenue lost by providing free mailing services to the blind and overseas voters. In FY2023, the appropriation was about $50 million.
Operating revenue
In FY2024, the USPS’s operating revenue was $79.5 billion, which was a 1.7% increase from the previous year.
Operating expenses
In FY2024, the USPS’s operating expenses were $89.5 billion, which was a 4.8% increase from the previous year.
Controllable loss
In FY2024, the USPS’s controllable loss was $1.8 billion.
Capital cash outlays
In FY2023, capital cash outlays were expected to increase by $1.0 billion compared to 2022.
Total cash and short-term investments
In FY2024, the USPS estimates that its total cash and short-term investments will be $15.8 billion.
Cost-cutting plans
The USPS plans to cut processing and distribution costs by at least $1.5 billion. This includes:
Insourcing more logistics needs
Relying less on contractors for trucking mail and packages.
Adding more sorting equipment to mail processing facilities
Shifting more mail and package volume away from air transportation contractors .
the United States Postal Service (USPS) uses both planes and trucks to move mail and packages:
Trucks
The USPS has a fleet of over 200,000 vehicles, including vans, tractor-trailers, and alternative fuel vehicles. The USPS’s primary delivery truck is the Grumman Long Life Vehicle (LLV), which has been in use since 1986. The USPS is also investing in a new fleet of electric mail trucks. ( LOL….EV )
Planes
The USPS uses contracted air services to move mail. However, the USPS has shifted away from air transportation in recent years. In 2023, the USPS reported that more than 95% of First-Class mail and packages were moved by ground transportation. The USPS has attributed this shift to the desire to be more reliable and affordable than air transportation.
The USPS also uses third-party transportation providers for long-haul transport. The USPS uses two programs for contracted truck transportation: the Highway Contract Route (HCR) and Freight Auction.
The USPS is generally self-funded, meaning that tax dollars are not used to keep its facilities running.
The service goes down and the postage prices continue to go up! Ridiculous!