Presiden-elect Donald Trump is reportedly eyeing privatizing the U.S. Postal Service (USPS) after the agency reported a staggering $9.5 billion loss in the fiscal year ending September 30.
This financial setback, caused by declining mail volumes and slower-than-expected growth in parcel shipping, has drawn attention to the Postal Service’s mounting liabilities, which now total nearly $80 billion, accoeding to a report by The Washington Post.
Trump has expressed interest in overhauling the agency, potentially moving it into the private sector, the report read, citing people familiar with the discussions.
Trump, set to take office on January 20, has spoken about his plans to privatize the Postal Service with Howard Lutnick, his nominee for commerce secretary, during discussions at Mar-a-Lago.
Trump’s push for privatization has been discussed with key figures, including Elon Musk and Vivek Ramaswamy, both of whom are leading a non-governmental panel on government efficiency, The Washington Post reports.
Also Read: Musk and Ramaswamy May Target This Surprising Government Role That Pays More Than You’d Think
The panel’s discussions suggest a potential shift in how essential services like the Postal Service are managed, focusing on efficiency and reducing government expenditure.
Privatizing the USPS would likely reshape the landscape of consumer shipping.
Companies like FedEx Corporation FDX and United Parcel Service, Inc. UPS already dominate the parcel market. Privatization could narrow the scope of service, focusing on profitable routes, and leaving rural and less profitable areas underserved. This could affect millions of customers who rely on affordable, consistent mail services, particularly in regions where private carriers may not have the same reach.
The Postal Service, founded in 1775 by Benjamin Franklin, has long been a symbol of the nation’s commitment to connecting citizens. In 1970, it became a financially self-sustaining entity, tasked with binding the nation together through mail.
Despite the challenges posed by the digital age, it remains one of the most beloved federal agencies. However, with its ongoing financial struggles, the conversation about privatization has become more urgent. Trump’s plan, while still unclear, suggests a significant transformation of an institution that has served the nation for nearly 250 years, The Washington Post adds.
Read Next:
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
