The Trump administration is considering shifting the U.S. Postal Service (USPS) under the Commerce Department, according to sources familiar with the matter. The move, if executed, would take place through executive action, placing the independent federal agency under the leadership of Commerce Secretary Howard Lutnick, a billionaire businessman and close Trump ally.
President Trump addressed the potential restructuring during Lutnick’s swearing-in ceremony at the White House on Friday.
“We want to have a Post Office that works efficiently and doesn’t lose massive amounts of money,” Trump told reporters. “We’re thinking about doing that in a way that keeps it the Postal Service, but also makes it operate better than it has in years.”
The Washington Post was the first to report on the administration’s consideration of the plan.
Postmaster General Louis DeJoy’s Resignation and USPS Financial Struggles
The discussions about the future of the USPS come amid the resignation of Postmaster General Louis DeJoy, a prominent Trump fundraiser who was appointed during Trump’s first term. While DeJoy has not specified his departure date, his tenure has been marked by controversy over rising postal rates and declining service quality.
Under DeJoy’s 2021 reform plan, the USPS aimed to turn a profit by fiscal year 2024. However, instead of financial recovery, the agency has posted consecutive years of mounting losses.
Paul Steidler, a senior fellow at the Lexington Institute and an expert on the Postal Service, explained the administration’s dissatisfaction with the USPS leadership.
“The president, for some very good reasons, isn’t happy with the postmaster general,” Steidler said. “Service has deteriorated massively, rates have been raised well above inflation, and losses continue to grow. If this trend continues, the USPS could run out of cash within the next four years.”
While the president does not have direct authority to fire the postmaster general, he does have the power to dismiss USPS Board of Governors members for cause. Since the board has the authority to remove the postmaster general, this could be a potential avenue for change.
Challenges in Restructuring the USPS
The idea of placing the USPS under the Commerce Department has sparked debate among experts and lawmakers. Steidler acknowledged that while the Commerce Department could potentially assume a supervisory role over the Postal Service, making such a change permanent would likely require congressional approval.
“A strong case can be made that the USPS Board of Governors has been derelict in its duty,” Steidler argued.
Founded in 1775 with Benjamin Franklin as the first postmaster general, the U.S. Postal Service has historically operated as an independent agency. Its governance structure includes a Board of Governors, which oversees postal operations along with the postmaster general and deputy postmaster general.
As discussions continue, questions remain about whether this potential restructuring would improve USPS efficiency or further politicize an essential government service.
