Trump is considering privatizing the US Postal Service, the Washington Post reports via Reuters
(Reuters) – United States President-elect Donald Trump has expressed a strong interest in establishing the US Postal Service in recent weeks, the Washington Post reported on Saturday, citing three people with knowledge of the matter.
The U.S. Post Office, which has lost more than $100 billion since 2007, reported a net loss of $9.5 billion in its fiscal year ending Sept. 30, a $3 billion larger loss than a year earlier, mostly due to year-over-year losses. increased non-cash workers’ compensation costs.
When told about the organization’s annual loss, Trump said the government should not fund the organization, according to the Washington Post.
Trump, who takes office on January 20, discussed his desire to privatize the Postal Service with Howard Lutnick, his choice for commerce secretary, at Mar-a-Lago, the report said.
Executives at the Department of Public Works, led by Elon Musk and Vivek Ramaswamy, have also held initial discussions about major changes to the USPS, the report said, citing two other people familiar with the matter.
The US Postal Service and Trump’s transition team did not immediately respond to requests for comment on the report.
Any attempt to privatize the Postal Service could disrupt the e-commerce industry in the US, the Washington Post said, including Amazon (NASDAQ: ), which uses USPS for “last mile” delivery between Amazon’s fulfillment centers and customers . It could also hurt small businesses and rural consumers who use the Postal Service, as it is the only company that will deliver goods to remote parts of the country.
Amazon recently said it is donating $1 million to Trump’s first fund and will broadcast his inauguration on its Prime Video service.
Trump has had a strong relationship with the Postal Service. Sources told Reuters that his transition team is considering canceling the service’s contracts to electrify its delivery fleet.
According to sources, the team is reviewing how to release multibillion-dollar service contracts, including with Oshkosh (NYSE: ) and Ford (NYSE: ), for tens of thousands of battery-powered delivery trucks and charging stations.
In 2020, Congress authorized the Treasury Department to lend the Postal Service up to $10 billion as part of a $2.3 trillion coronavirus recovery package, which Trump has threatened to block.
