Trump Considers U.S. Postal Service Takeover Amid Financial Struggles

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• Trump considers U.S. Postal Service takeover for financial reasons
• Postmaster General DeJoy plans to step down amidst challenges
• USPS faces financial struggles due to declining mail volume
• Trump criticizes USPS, suggests privatization and rate hikes
• Board led by Chair McReynolds oversees USPS operations

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Who works for the USPS?

• The USPS employs about 640,000 workers responsible for delivering various items across the country, including mail, medicine, election ballots, and packages.
• Workers at USPS have the right to collective bargaining, which was granted to them during the 1970 reorganization, helping many Americans, especially minorities, move into the middle class.
• Postal workers, including those from diverse backgrounds, have remained dedicated to their duties, even during challenging times like the coronavirus pandemic, with some unfortunately losing their lives.

Source

HuffPost

Composition and Role of the USPS Board

• The USPS board consists of up to nine members, with a limit of five from the same political party, appointed by the president and confirmed by the Senate.
• Current chair Amber F. McReynolds and vice chair Derek Kan were appointed by President Joe Biden, with three vacancies remaining due to the Senate not voting on Biden's nominees.
• The board holds the authority to hire and dismiss the postmaster general, who also serves on the board along with a deputy postmaster.

Source

HuffPost

Potential Board Shake-up at the U.S. Postal Service

• The White House denied plans for an executive order to fire Postal Service board members, contradicting earlier reports.
• The board of governors, appointed by the president and confirmed by the Senate, retained legal counsel to potentially sue if the agency's independence is threatened.
• Postmaster General Louis DeJoy, a Trump appointee, announced plans to step down and initiate the search for his successor.

Source

usatoday.com

Trump's Criticism of the Postal Service

• Trump has expressed interest in privatizing the Postal Service, citing the changing landscape with companies like Amazon, UPS, and FedEx.
• The Postal Service is currently implementing a 10-year restructuring plan to address predicted losses, aiming to eliminate $160 billion in losses over the next decade.
• Despite efforts to stabilize operations, the Postal Service continues to face significant financial challenges, with projected losses of $80 billion over the restructuring period.

Source

usatoday.com

USPS Financial Challenges and Operational Decisions

• The USPS reported a significant net loss of $9.5 billion for the 2024 fiscal year, representing a 46% increase from the previous year's deficit.
• Despite declining mail volumes, the USPS has been increasing its headcount, raising questions about the efficiency of its operations.
• The service's past "profit" was influenced by changes in retiree health benefit prepayment requirements, highlighting the complexities of its financial situation.

Source

zerohedge.com

Louis DeJoy's Departure and Controversy

• DeJoy's resignation comes after significant financial losses in 2023 and 2024, totaling $16 billion.
• DeJoy's appointment by Trump in 2020 led to accusations from Democrats of hindering mail-in voting efforts during the pandemic.
• Speculation surrounds DeJoy's departure amid reports of Trump considering his replacement, sparking political controversy.

Source

zerohedge.com

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