A Treasury Department-led task force released a series of recommendations this week to overhaul the U.S. Postal Service’s business model without overly burdening taxpayers.
Between fiscal 2007 and fiscal 2018, the USPS experienced net losses totaling $69 billion and is forecasted to lose tens of billions of dollars more over the next decade if its business practices are not updated to reflect its current operating realities.
“The USPS is on an unsustainable financial path which poses significant financial risk to American taxpayers,” said Treasury Secretary Steven Mnuchin. “President Trump tasked us with conducting a thorough evaluation of the USPS, and today’s report contains achievable recommendations that fulfill the president’s goal of placing the USPS on a path to sustainability, while protecting taxpayers from undue financial burdens and providing them with necessary mail services.”
The task force’s recommendations are sweeping in nature, calling for stronger oversight of the USPS Board of Governors, a new pricing model that would charge market-based prices for mail and packages that are not “essential postal services,” restructuring postal employee compensation and retiree health benefits, and exploring new services that would allow USPS to exact value from existing assets and business lines.
Some have suggested the new pricing model for packages is aimed at retailers like Amazon, which has been criticized by President Trump for taking advantage of the U.S. postal system. Trump told The Daily Caller last month that Amazon is “getting the bargain of the century” by sending its packages through the U.S. postal system, adding, “I think that’s why I’ve asked for a review.”