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By Aliss Higham
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Republicans are among a group of Senators who have warned President Donald Trump's potential plans for the United States Postal Service (USPS) could increase costs.
Why It Matters
President Trump has previously signaled his support for privatizing the USPS, the world's largest mail carrier that is older than the United States itself. Commenting on possible privatization a few months ago, Trump said "it's an idea that a lot of people have liked for a long time."
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Trump adviser Elon Musk has also said he would support bringing the postal service out of public control.
The president has also floated the idea of bringing the independent federal agency under the control of the Commerce Department.
What To Know
A bill has been introduced in the Senate to "support the independence and critical public service mission" of the USPS, with its sponsors saying that current plans could "increase costs."
The bill reads that "Congress should take all appropriate measures to ensure that the United States Postal Service remains an independent establishment of the Federal Government and not subject to privatization."
Newsweek has contacted the USPS via email outside of regular working hours for comment.
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The bill has been introduced by Republicans Susan Collins, Dan Sullivan, Lisa Murkowski, and Thom Tillis, along with Democrats Gary Peters and Maggie Hassan.
Maine Senator Collins said that "privatizing the Postal Service would jeopardize its core mission while driving up costs and reducing service."
The agency serves nearly 169 million addresses in the U.S., delivering more mail and packages than any other postal service in the world, according to the USPS website.
Still, the USPS has been struggling financially in recent years, having implemented a 10-year plan to stabilize its finances in 2021. It reported a $9.5 billion loss in the fiscal year ending in September 2024, compared to a net loss of $6.5 billion in the fiscal year 2023.
The bulk of its annual $78.5 billion budget comes from customer fees, from the sale of goods such as stamps and payments for other delivery services, according to the Congressional Research Service**.** The postal service made $25.4 billion in stamp sales in 2024, along with $32.2 billion in shipping and packages - its two largest revenue streams that accounted for more than half of its revenue last year. Both have already been subject to price increases in recent years in an effort to stabilize USPS finances.
Congress provides a relatively small annual appropriation — some $50 million in fiscal year 2023 — to subsidize reduced-cost and free mail services.
Is The USPS Being Privatized?
While Trump has signaled his interest in potentially privatizing the USPS, there are no announced plans to remove it from public control.
Earlier this month, the USPS reached a deal with Musk's Department of Government Efficiency (DOGE), allowing it to search for "further efficiencies" upon existing plans to cut 10,000 jobs through a voluntary retirement program.
Stamp Price Rises
Stamp prices are already set to increase in July. Under a proposal by the USPS, the price of a first-class stamp will go up from 73 cents to 78 cents - a 7.4 percent increase.
The request was submitted to the Postal Regulatory Commission on Wednesday and requires its approval. If granted, the 5-cent increase for "forever" stamps, along with similar hikes for postcards, metered letters, and international mail, would go into effect on July 13.
What People Are Saying
Senator Collins said in a press release issued on April 9: "The U.S. Postal Service plays a vital role in the daily lives of millions of Americans, especially in rural states like Maine, where the timely delivery of essentials like prescription medications is critical. Privatizing the Postal Service would jeopardize its core mission while driving up costs and reducing service. I have long supported efforts to strengthen the Postal Service, and I will continue working to ensure that it remains accessible in American communities for years to come."
President Donald Trump in February at the swearing in ceremony of Commerce secretary Howard Lutnick: "Well, we want to have a post office that works well and doesn't lose massive amounts of money, and we're thinking about doing that, and it will be a form of a merger. It'll remain the Postal Service, and I think it'll operate a lot better than it has been over the years."
What's Next
What the Trump administration plans to do with the USPS - either privatizing it or bringing it into the Department of Commerce - is unknown at this time.
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