The mail truck rattling down your street might look the same, but behind the scenes, a massive tug-of-war is happening. Donald Trump is floating a plan to fold the U.S. Postal Service (USPS) into the Department of Commerce. Honestly, it’s one of those moves that sounds like a dry bureaucratic reshuffle but could actually change how you get your prescriptions, your birthday cards, and those endless Amazon boxes.
Basically, the USPS has been an independent agency since the early '70s. Trump wants to end that streak. During the swearing-in of Commerce Secretary Howard Lutnick in February 2025, the President didn't mince words. He called the agency a "tremendous loser" for the country, citing the billions of dollars it bleeds every year. His solution? A "form of a merger."
Why Merging the Postal Service into the Commerce Department is Even on the Table
For decades, the USPS has operated in a weird limbo. It’s government-owned but supposed to be self-funded. It doesn't use taxpayer money for operations, which is a fact most people actually miss. But it’s struggling. Hard. In fiscal year 2024, the agency lost $9.5 billion.
Trump’s logic is pretty straightforward: he wants to run it more like a business. By moving it under the Commerce Department, he’d give the White House way more direct control. Right now, a Board of Governors—appointed by the President but confirmed by the Senate—stands between the Oval Office and the Postmaster General. Trump reportedly wants to fire that board and put the whole thing under Lutnick’s wing.
The Lutnick Connection
Howard Lutnick isn't just a cabinet member; he’s a billionaire with a "can-do" reputation. The idea is that his department, which already handles things like the Census and the Patent Office, could bring some "private sector magic" to the mail. It’s about efficiency. Or at least, that’s the sales pitch.
The Legal Minefield of an Independent Agency
Is this even legal? It’s a messy question. The Postal Reorganization Act of 1970 was designed specifically to keep the mail out of partisan politics. Before that, the Post Office was a cabinet department where jobs were often handed out as political favors.
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- The "For Cause" Catch: A President can’t just fire the Board of Governors because he’s bored. He needs "cause"—legal justification like neglect of duty.
- Congressional Power: The Constitution actually gives Congress, not the President, the power to "establish Post Offices and post Roads."
- Legislative Resistance: Many lawmakers, including some Republicans in rural districts, are terrified of this. If the USPS becomes a profit-driven arm of the Commerce Department, what happens to the guy living at the end of a dirt road in Wyoming? UPS and FedEx often won't go there. The USPS has to. It's called the Universal Service Obligation.
What Most People Get Wrong About the Merger
You've probably heard the word "privatization" thrown around. It’s a scary word for postal workers. But "merging" and "privatizing" aren't exactly the same thing, though one often leads to the other.
In a merger scenario, the USPS stays a government entity but loses its independence. In a privatization scenario, you’re looking at selling off parts of the business—like parcel delivery—to the highest bidder. Trump has said it would "remain the Postal Service," but critics like Senator Gary Peters and Congresswoman Nikki Budzinski argue this is just a Trojan horse for selling it off piece by piece.
The reality is that the USPS is a massive operation. We're talking 640,000 employees and 250,000 vehicles. You can't just flip a switch and make that a department of Commerce. It’s a logistical mountain.
Rural America and the "Last Mile" Problem
If you live in a city, you have options. If the USPS raises rates under the Commerce Department to "break even," you might just use Amazon Logistics or a local courier. But for rural America, the USPS is the only game in town.
Small businesses in rural areas rely on the USPS for affordable shipping. If a merger leads to "business-style" pricing, those rates could skyrocket. Anthony Pizza, a logistics expert, pointed out recently that full privatization or a profit-driven merger could "raise costs sharply" for those who can least afford it.
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The Union Perspective
The National Association of Letter Carriers (NALC) is already on the warpath. They see this as an attack on one of the few remaining paths to the middle class for people without college degrees. They've pointed out that over 73,000 veterans work for the USPS. For them, this isn't about balance sheets; it's about livelihoods.
The Counter-Argument: Why Staying Independent Might Be Worse
To be fair, the status quo isn't exactly a picnic. Postmaster General Louis DeJoy—who, ironically, was a Trump appointee—has been trying a 10-year "Delivering for America" plan to save the agency. It involves slowing down some mail and raising stamp prices.
People hate it.
Some experts, like Paul Steidler from the Lexington Institute, argue that the current Board of Governors has been "derelict in its duty" by letting losses spiral. From this perspective, bringing the USPS into the executive branch might actually provide the oversight needed to force real modernization. They argue that an independent agency that loses $10 billion a year isn't really "independent"—it's just unaccountable.
Real World Impacts You'll Actually Feel
If this merger goes through, or even if the threat of it persists, expect a few things to happen fairly quickly:
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- Rate Hikes: The push for profitability usually means you pay more at the counter.
- Consolidated Processing: You might see more local sorting centers close down, which means your mail takes a longer "scenic route" before it gets to you.
- Delivery Days: There’s always talk of cutting Saturday delivery. A Commerce-led USPS might finally pull that trigger.
Honestly, the "merger" might look more like a digital integration at first. Some experts suggest that instead of a full takeover, the Commerce Department might just take over the "customer-facing" and digital parts of the USPS while leaving the heavy lifting of actual delivery as a separate, struggling wing. Sorta like a "USPS Lite."
Actionable Steps for Businesses and Individuals
If you’re a small business owner or someone who relies on the mail, you shouldn't just wait and see. The uncertainty alone is enough to justify some prep.
- Diversify Your Shipping: If you only use USPS, start building relationships with regional carriers or look into "hybrid" shipping options where a private carrier handles the long haul and USPS only does the final drop.
- Audit Your Mailing List: If stamp prices go up again (which they likely will, merger or not), "dead mail" becomes a huge waste of money. Clean your lists now.
- Watch the Courts: Keep an eye on the Youngstown Sheet & Tube Co. v. Sawyer precedent. This is the legal "gold standard" for when a President oversteps their authority. If the White House issues an executive order to merge the agencies, a court injunction will likely follow within hours.
- Voice Your Opinion: Contact your representative, especially if you live in a rural area. Bipartisan pressure is the only thing that has stopped postal "reforms" in the past.
The mail has been a cornerstone of American life since Benjamin Franklin was the first Postmaster General. Whether it stays an independent service or becomes a subsidiary of the Commerce Department, the next two years are going to be the most volatile in postal history.
What to Track Next
Keep an eye on the Senate confirmation hearings for any new Board of Governors members. If the administration stops sending nominees and instead pushes for an executive takeover, that’s your signal that the "merger" is officially moving from talk to action.
Actionable Insight: If you rely on USPS for business, calculate your "break-even" shipping cost now. If rates were to rise by 15-20% under a new "business-first" Commerce model, would your current pricing survive? Start testing alternative carriers for your highest-volume routes today to ensure you aren't caught off guard.