White House considers placing USPS under Commerce Dept. as Postmaster General resigns

The Trump administration is exploring an unprecedented shake-up of the United States Postal Service (USPS), with plans to place the independent agency under the Commerce Department. The move, which could be executed through executive action, would put the nation’s mail system under the control of billionaire and Trump confidant Howard Lutnick, recently appointed as Commerce Secretary.

During Lutnick’s swearing-in ceremony at the White House, Trump hinted at the potential merger. “We want to have a Post Office that works well and doesn’t lose massive amounts of money,” he told reporters. “It’ll remain the Postal Service, but I think it’ll operate a lot better.”

The Washington Post first broke the story, confirming the administration’s active discussions on the proposal. The timing coincides with the abrupt resignation of Postmaster General Louis DeJoy, a major Trump donor appointed in his first term. DeJoy, under fire for rising postal rates and declining service, had initially promised USPS would be profitable by 2024. Instead, it has suffered consecutive years of mounting losses.

Paul Steidler, a senior fellow at the Lexington Institute and a USPS expert, described the Postal Service’s financial struggles as a major concern for Trump. “The president, for some very good reasons, isn’t happy with the postmaster general. USPS service has massively deteriorated, rates have soared above inflation, and financial losses are spiralling. Without intervention, they’ll run out of cash in the next four years.”

While Trump lacks the authority to directly fire the postmaster general, he does hold the power to dismiss USPS Board of Governors members, who oversee the agency’s leadership. Analysts believe this could pave the way for a Trump-approved successor at USPS or a forced restructuring.

Critics argue that shifting USPS under the Commerce Department would undermine its independence, with concerns over political interference and privatisation. Others point out that a permanent transfer would likely require legislation, an uphill battle given the divided political climate.

Founded in 1775 with Benjamin Franklin as its first postmaster general, USPS has operated as an independent entity for decades. The proposed changes mark one of the most dramatic overhauls in its history, raising questions about the future of mail service in America.