USPS Needs Innovation—Not a White House Takeover

President Trump’s expected plan to take direct control of the U.S. Postal Service (USPS) by placing it under the U.S. Department of Commerce (DOC) is a dangerous move that would undermine the Post Office’s independence, disrupt mail and package delivery, and likely result in politically motivated decisions on pricing and service levels.

This proposal flies in the face of decades of policy designed to keep USPS independent, ensuring that it operates in a way that balances cost, competition, and service obligations without undue political interference. If the Trump administration is serious about improving USPS, it should focus on modernizing operations and fostering public-private collaboration, rather than a hostile takeover that could cripple the institution.

For decades, USPS has operated as an independent agency, with pricing decisions overseen by the Postal Regulatory Commission (PRC) to prevent unfair competition and ensure that postal rates reflect operational costs rather than political pressure. Historically, private carriers such as United Parcel Service and FedEx have lobbied USPS to raise package rates to make their own services more competitive.

Congress restructured the postal service in 1970 and reaffirmed its universal service obligation in which USPS “shall provide prompt, reliable, and efficient services to patrons in all areas and shall render postal services to all communities.” Placing USPS under the direct control of the White House would dismantle this balance, allowing rate-setting and service decisions to be made based on political considerations rather than economic factors and the goal of serving all U.S. communities.

This threat is not hypothetical. Trump sought to force USPS to increase package rates for Amazon in his first term, in part due to his dislike of Amazon’s then-CEO Jeff Bezos, according to The Washington Post. Eliminating USPS’s independence would invite further political manipulation that could distort the entire shipping market.

Trump is correctly concerned about USPS’s finances. In fiscal year 2024, USPS reported a $9.5 billion net loss, a year after reporting a $6.5 billion net loss for fiscal year 2023. However, USPS’s financial struggles are primarily due to internal decisions made by Postmaster General Louis DeJoy that increased operational expenses without corresponding efficiency improvements.

DeJoy, despite being appointed by a Trump-aligned board, aggressively expanded USPS operations beyond its historical mandate. Under his leadership, USPS converted 125,000 temporary employees into unionized career positions between October 2020 and April 2023, citing historic turnover that “negatively impacted performance and increased operational costs.” This move aligned with the American Postal Workers Union’s long-standing goal of an all-career workforce. However, despite this justification, labor productivity declined by over 8 percent between fiscal year 2021 and 2024.

DeJoy also insourced work that had previously been performed by private-sector contractors, such as mail sorting facilities. These decisions should have gone through the PRC’s oversight process, which is legally mandated to review major operational changes. Instead, DeJoy largely ignored regulatory oversight, pushing USPS towards a bloated and inefficient structure.

Following DeJoy’s resignation, the Trump administration should appoint a postmaster general who is committed to regulatory compliance and evidence-based decision-making. That means ensuring that USPS adheres to its statutory work-sharing agreements with the private sector, which have historically allowed for a more efficient hybrid model where USPS focuses on last-mile delivery while private carriers handle sorting and long-distance transport. This model preserves competition in the broader logistics market while maintaining USPS's universal service obligation in last-mile delivery.

If Trump wants to improve USPS, his administration should focus on policies that enhance its efficiency and technological capabilities, enabling the service to operate profitably. This includes strengthening work-sharing agreements to maintain USPS’s role in last-mile delivery while leveraging private-sector logistics expertise for upstream operations.

To cut costs without impacting service, the USPS needs to invest in automation and AI to further optimize sorting, routing, and delivery logistics, while avoiding non-postal expansions that dilute USPS’s core mission. The next postmaster general should also encourage regulatory compliance by ensuring that major operational changes undergo PRC review, avoiding unilateral expansions like those under DeJoy.

USPS should not need to be subsumed into DOC, undergo a White House takeover, or be subjected to an unrealistic privatization scheme. Instead, it needs innovation-driven reforms that balance efficiency, competition, and frugality. Trump’s plan would do the opposite—politicizing the Postal Service, distorting pricing decisions, and ultimately harming both consumers and businesses that rely on USPS every day.