What could happen if Trump orders takeover of troubled US Postal Service?

President Donald Trump said Friday he's "thinking about" merging the U.S. Postal Service with the Commerce Department, ending the agency’s independent status and putting it under the authority of his administration.

Trump's statement in the Oval Office, after Howard Lutnick was sworn in as his new Commerce secretary, came after two news reports published earlier.

Trump is preparing to issue an executive order to fire the postal service’s governing board, The Washington Post reported Thursday, citing six anonymous officials. Trump confirmed the merger plan on Friday, the Post reported.

"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," Trump said, according to USA TODAY.

How much money has the Postal Service lost?

"It'll be a form of a merger, but it'll remain the Postal Service," Trump said. "And I think it'll operate a lot better than it has been over the years. It's been just a tremendous loser for this country."

Trump's plan would "probably violate federal law," said The Post, citing postal sources.

The Wall Street Journal also reported the storyon Friday, citing two anonymous sources. The White House said no such executive order is planned.

The news reports followed the resignation of Postmaster General Louis DeJoy on Feb. 18. DeJoy developed a 10-year plan in 2021 called Delivering for America to modernize operations and stem losses, after years of financial trouble, USA TODAY said.

Merging the Postal Service with Commerce could result in several cost-cutting changes, Newsweek reported, with rural areas being hardest hit. Possible changes:

• An end to six-day deliveries

• Post office closures

• Higher costs for service

• Slower mail delivery

• Employee layoffs

Much of the agency's financial losses in fiscal year 2024 were attributed to "pension contributions for retirees and workers’ compensation claims for employees injured on the job," the Federal News Network reported.  

Postal officials project a $6.9 billion overall loss in fiscal year 2025.

Could Trump privatize the postal service?

That appears unlikely without congressional approval, according to CNN. The Postal Service has a bipartisan board whose members are appointed by the president and confirmed by the U.S. Senate.

Democrats and postal workers oppose a merger. Postal Service officials have hired lawyers to fight any changes by Trump, The Post's report said, including firings of board members.

Sen. Gary Peters, D-Michigan, the ranking member of the Homeland Security and Governmental Affairs committee, said any move by Trump on the Postal Service would be illegal.

Peters said privatization would harm veterans, small business owners and rural communities, reported the Bergen Record.

Trump suggested privatizing the Postal Service in 2018 but later dropped the plan. He brought up the idea again in December 2024. “Not the worst idea I've ever heard,” Trump said.

Most Americans say they like the Postal Service

Trump has often criticized the Postal Service, which has more than 530,000 full-time employees and serves more than 163 million addresses across the country. The Postal Service has reported a net loss of $100 billion since 2007.

Despite its financial problems, the Postal Service has the second-highest favorable rating among federal agencies and departments, according to a poll by Pew Research in July 2024.

Only the National Park Service ranked higher. Nearly 1,000 park employees were laid off by the Trump administration on Friday, USA TODAY reported.