US President-elect Donald Trump has expressed keen interest in privatizing the US Postal Service in recent weeks. The Washington Post It was reported on Saturday, citing three people with information on the matter. The U.S. Post Office, which has lost more than $100 billion since 2007, reported a net loss of $9.5 billion for the fiscal year ended Sept. 30, a $3-billion larger loss than last year, largely on a year-over-year basis. -Because of the year. Increase in non-cash workers’ compensation expenses.
After being told about the agency’s annual deficit, Trump said the government should not be subsidizing the organization, according to The Washington Post.
Trump, who takes office on Jan. 20, discussed his desire to privatize the Postal Service with Commerce Secretary-elect Howard Lutnick at Mar-a-Lago, the report said. People working in the Department of Government Efficiency, led by Elon Musk and Vivek Ramaswamy, have also had initial conversations about major changes at the USPS, the report said, citing two other people familiar with the matter.
A USPS spokesperson said that over the past three years, the company has reduced its operations by 45 million work hours, and reduced its transportation costs by $2 billion.
The agency is also seeking regulatory approval to align its mail processing and transportation network with modern practices, which would save $3.6-$3.7 billion annually, the spokeswoman added. The Trump transition team did not immediately respond to a request for comment on the report.
Any attempt to privatize the postal service could disrupt America’s e-commerce industry The Washington Post Including Amazon, which uses USPS for “last-mile” deliveries between Amazon’s fulfillment centers and customers. It can also harm small businesses and rural consumers who use the postal service, as it is the only carrier that delivers to remote corners of the country.
Amazon recently said it is donating $1 million to Trump’s inaugural fund and will broadcast his inauguration on its Prime Video service. Trump has had a strained relationship with the Postal Service. Sources told Reuters that his transition team is considering canceling service contracts to electrify its delivery fleet.
According to sources, the team is reviewing how to unwind the service’s multibillion-dollar contracts with Oshkosh and Ford for thousands of battery-powered delivery trucks and charging stations.
In 2020, Congress authorized the Treasury Department to lend $10 billion to the Postal Service as part of a $2.3 trillion coronavirus stimulus package, which Trump threatened to block.
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