Trump Plans USPS Overhaul, Raising Legal and Economic Concerns
Washington D.C., Friday, 21 February 2025.
President Trump aims to place USPS under federal control through an executive order, potentially disrupting trillions in e-commerce and facing legal challenges due to federal law violations.
Imminent Executive Action
Former President Donald Trump is expected to issue an executive order as early as February 23, 2025, to dissolve the USPS governing board and transfer control to the Commerce Department under Secretary Howard Lutnick [1][2]. This dramatic move would fundamentally alter the structure of the 250-year-old independent agency, which currently handles trillions of dollars in e-commerce transactions [1]. The plan marks a significant escalation in Trump’s long-standing interest in privatizing the postal service, which he explicitly discussed in December 2024 [3].
Legal Challenges and Opposition
The USPS board of governors is preparing to mount a legal defense against the proposed takeover. During an emergency meeting on February 19, 2025, the board retained outside counsel to challenge the executive order [1]. Legal experts warn that Trump’s planned action likely violates federal law, as the USPS is specifically exempt from executive orders under the Postal Reorganization Act of 1970 [5]. The American Postal Workers Union has denounced the move as ‘an outrageous, unlawful attack on a storied national treasure’ [6].
Economic and Service Implications
The USPS serves as the backbone of a $1.2 trillion mail and shipping industry, supporting over 7 million jobs nationwide [6]. Critics, including APWU President Mark Dimondstein, warn that privatization would particularly impact rural America and could lead to increased postage rates [6]. The agency reported a $9.5 billion loss in the 2024 fiscal year [5], though it maintains strong public support with over 70% approval across party lines [1].
Political Context and Timeline
This development comes as current Postmaster General Louis DeJoy plans to step down [4], and follows Trump’s previous conflicts with the postal service. The timing is particularly significant as the nation approaches another presidential election cycle, with potential implications for mail-in voting and government services [1]. The Commerce Department, under Secretary Lutnick, would assume control of the agency if the executive order proceeds [1], though any such change would likely face immediate legal challenges and congressional scrutiny [5].