What Happens If the USPS Goes Private?

The United States Postal Service (USPS) is more than just a mail carrier—it’s a vital piece of everyday life in America. The USPS anchors a trillion-dollar mail industry with hundreds of millions of letters and packages moving through its system daily. But it’s also facing a financial crisis, and privatization talks are back on the table.

So, what would it mean if the USPS went private? Let’s break it down.

What Is the USPS, Really?

Most people don’t realize that the USPS isn’t a traditional government agency. Since 1970, it’s been an independent entity under the executive branch, managed by a Board of Governors. It doesn’t use taxpayer money to run. Instead, it funds operations through sales—think stamps, shipping fees, and services.

Why Rural America Should Be Concerned

Here’s the deal: private companies don’t have the same obligations as the USPS. While the Postal Service is legally required to deliver mail to every U.S. address—no matter how remote—private carriers aren’t.

That’s a big deal for rural communities:

• Only 16% of Americans live in rural areas, but they host 57% of post offices.
• The USPS has long been the only consistent connection for many of these communities—delivering letters, medication, equipment, and more.
• Privatization could lead to higher prices, reduced service, or even complete service cuts.

Trump’s Push to Privatize—Again

Former President Donald Trump has flirted with privatizing the USPS before—and he’s brought it up again. In February 2025, during a ceremony for the new Secretary of Commerce, Trump said the Postal Service has been a “tremendous loser” and hinted at moving it under the Department of Commerce’s control.

According to reports, this could mean disbanding the current Board of Governors and putting the USPS under direct federal control.

Financial Woes and Workforce Cuts

The USPS ended 2024 with $8.1 billion, but it’s projected to lose nearly $7 billion by the end of 2025. Why? A few reasons:

• The agency maxed out its $15 billion borrowing limit.
• First-class mail volume keeps dropping thanks to digital communication.
• While online shopping has boosted package volume, it’s not enough to offset the losses.

To cut costs, outgoing Postmaster General Louis DeJoy struck a deal with the Department of Government Efficiency (DOGE) to eliminate 10,000 postal jobs. He’s stepping down after five years, but not before overseeing major changes—including a surprising $144 million profit in Q1 2025 (compared to a $2.1 billion loss the year before).

What’s at Stake for Everyday Americans

Privatizing the USPS might offer some financial relief in the short term—but it could come with steep costs:

• Less access for rural and underserved communities
• Higher costs for everyday mail and packages
• Job losses for postal workers
• A shift from public service to profit-driven priorities

As the future of the USPS hangs in the balance, one thing is clear: any decision to privatize would reshape how millions of Americans connect, communicate, and do business.

Source: USA Today

Stay Flexible & Be Ready to Adapt

With USPS going through major transformations, shippers must stay proactive. By diversifying carriers, negotiating better rates, improving fulfillment strategies, and keeping customers informed, you can minimize the impact of these changes on your business.

What are you doing to prepare for potential USPS disruptions?

Contact Us Today! We can help!