Trumpworld considers Postal Service overhaul

• The Washington Post reported Saturday, citing three unnamed sources, that Trump talked with his commerce secretary pick Howard Lutnick at Mar-a-Lago about his interest in overhauling the agency. He reportedly said the government shouldn't subsidize the mail agency given its recurring losses.
• The president-elect also "convened a group of transition officials to ask for their views on privatizing the agency" earlier this month, The Post reported.
• Axios reached out to the Trump transition team for confirmation and comment. His specific plans are not immediately clear.

State of play: Republicans have signaled displeasure with USPS in a few other recent incidents.

• Rep. Marjorie Taylor Greene (R-Ga.) posted on X earlier this week alongside a Fox Business chyron about the Postal Service's fiscal-year losses: "This is what happens when government-run entities are bloated, mismanaged, and unaccountable."
• Greene, who's incoming chair of the House's "DOGE" Oversight committee, added: "It's time to demand real reform and stop wasting taxpayer dollars!"
• Postmaster General Louis DeJoy, who was appointed to his role in 2020 and has introduced a 10-year plan to rescue the agency, faced a GOP-led grilling during a House Oversight hearing this week.
• Republicans criticized the carrier for financial losses and claimed it was providing subpar service, at one point leading to a viral moment where DeJoy covered his ears during criticism.

Democrats have been more sympathetic to the agency and against privatization.

• Privatization is "our big fear," Rep. Gerry Connolly (D-Va.) told The Post. "That could have disastrous consequences, because when you go private, the profit motive is everything."

By the numbers: The Postal Service lost $9.5 billion in the fiscal year ending Sept. 30. It comparatively lost $6.5 billion during the same period the previous year. It has not been profitable since 2006.

• In 2022, Congress passed a $107 billion bipartisan package to provide financial relief and help modernize its operations.

What they're saying: The Postal Service "is already engaged in an initiative to ensure that we can provide our customers with a high level of service to every delivery address in the nation at least 6-days-a-week in an efficient and financially sustainable fashion as required by law," a USPS spokesperson told Axios.

• The spokesperson said USPS is seeking "an advisory opinion from our regulator concerning our plan to modernize and optimize our processing and transportation networks." It's also looking at adding automation equipment.

The big picture: USPS helps guarantee Americans in all parts of the country receive mail service under its "universal service obligation." Enshrined in the U.S. Constitution, the postal service pre-dates the country's founding.

• During the COVID pandemic, its universal service was especially important as people stayed home and could still receive medication, stimulus checks and census forms by mail.
• The Postal Service also provides last-mile delivery to logistics companies like Amazon, FedEx and UPS to harder-to-reach areas.

Flashback: Some of Trump's criticism toward USPS during the final year of his first term was related to mail-in voting. The Postal Service ultimately pulled off the mass delivery of ballots with limited issues.

What to watch: In 2020, DeJoy, a longtime business executive who was a GOP megadonor, was seen as a villain on the left during the throes of the election.

• Since President Biden has been in office, DeJoy's relationship with Democrats became less icy — in part thanks to his support for millions of at-home COVID-19 test deliveries; transitioning the USPS fleet toward electric vehicles; and the sweeping bipartisan reform act in 2022.
• Many expected Biden would have fired him, though the process is more complicated. How long he fares under Trump 2.0 is unclear.

Editor's note: This story has been updated with additional context.