Trump Moves to Disband USPS Board

• President Trump’s plan to disband the U.S. Postal Service’s board via executive order and shift the agency under Commerce Department control threatens its independent status, reigniting privatization debates amid its $9.5 billion 2024 net loss.
• The WSJ reports that the Postal Service board is poised to legally challenge the order, while critics like Rep. Don Beyer and union leader Mark Dimondstein denounce it as illegal and harmful, citing potential rate hikes and closures against a backdrop of 600,000 employees and extensive delivery obligations.
• The move coincides with Postmaster General Louis DeJoy’s exit and follows Trump’s first-term push to overhaul the financially strained agency, which relies on postage revenue and faces declining mail volumes, testing the limits of executive authority over a 250-year-old institution.

President Trump’s prospective executive order to disband the U.S. Postal Service’s governing board and place the agency under the Commerce Department’s control has sparked a fierce debate over the future of an institution that employs over 600,000 people and delivers to 168 million addresses weekly. Shares of this plan, reported by the Washington Post and corroborated by two government officials, signal a dramatic shift from the Postal Service’s quasigovernmental status, potentially aligning it more closely with Trump’s administration amid his renewed push for privatization—a concept he championed in his first term but failed to enact due to Congressional resistance. The move comes against a backdrop of financial strain for the agency, which posted a $9.5 billion net loss in fiscal 2024, though its controllable loss was $1.8 billion after adjustments, relying almost entirely on postage and service revenues rather than federal funds.

The WSJ reports that the Postal Service board is gearing up for a legal battle to contest this order, leveraging its members’ presidential appointment and Senate confirmation status, though the feasibility of blocking Trump’s directive remains uncertain. This tension echoes past struggles, notably Trump’s December remarks at Mar-a-Lago about privatization to address the agency’s chronic deficits – driven by declining mail volumes, restrictive pricing, and expansive delivery mandates – reviving a debate dormant since his earlier administration’s unsuccessful reorganization efforts met opposition from labor unions like the American Postal Workers Union, led by Mark Dimondstein, who now calls this a “hostile takeover” threatening higher rates and closures. Meanwhile, Postmaster General Louis DeJoy’s announced resignation after five years, amid whispers of White House plans to replace him, adds another layer of upheaval to an agency already navigating a digital-age transition.

The Journal notes that critics, including Rep. Don Beyer and union leaders, decry the plan as unconstitutional and a betrayal of public support for an essential service, while a White House official denies its existence, leaving the Postal Service’s fate hanging in a politically charged limbo. The agency’s role as a lifeline for e-commerce, medication delivery, and rural connectivity underscores its significance, yet its financial woes – once exacerbated by a now-lifted retiree health benefits prefunding requirement – fuel arguments for reform. Trump’s gambit, if executed, could reshape not just the Postal Service but the broader landscape of federal oversight, testing the boundaries of executive power and the resilience of an institution woven into America’s fabric for 250 years.

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