OPINION:
After decades of overspending by the federal government, not to mention mission creep across agencies, President Trump is making good on his mandate to increase accountability and save taxpayers’ hard-earned money. Already, he has taken steps to cut the federal budget, and he has tapped thoughtful leaders from across private industry, watchdog groups and even other government agencies to end wasteful spending and rightsize the federal bureaucracy.
One such agency in desperate need of reform is the United States Postal Service. The Postal Service board of governors’ choice for postmaster general, David Steiner, undoubtedly has his work cut out for him. America’s mail carrier has lost $100 billion over the past 15 years and is poised to lose at least $60 billion more through 2030. Although Congress, in theory, expects USPS to be financially self-sufficient, the agency has consistently lost money and been labeled a high financial risk by the Government Accountability Office. In 2023, the GAO grimly noted that the agency “cannot fully fund its current level of services and financial obligations,” especially amid declining first-class mail volumes.
Unsurprisingly, taxpayer bailouts have created all the wrong incentives and worsened the problem. USPS has received more than $120 billion in taxpayer bailouts since 2020, including debt write-offs and forgiven loans. Although past USPS leaders pledged to make the organization self-sufficient by 2023, the agency acknowledged that its plans are woefully off track. Just last year, USPS quietly posted a loss of $9.5 billion, and it is expected to be getting ready to ask American taxpayers for another handout.
Congress shouldn’t continue to pour more of Americans’ hard-earned money into a failing organization that has been headed in the wrong direction for years. Any realistic agenda must focus on reforming USPS instead of writing more blank checks.
Yet the law is making postal finances worse instead of better. In 2022, President Biden signed the Postal Service Reform Act, which is now forcing the agency to spend $40 billion it doesn’t have to create an “integrated network,” mainly to deliver packages. Coupled with the costly mandate to deliver six days a week, the law adds package delivery to the Postal Service’s public mission. If and when USPS calls on Congress for more help, as expected, taxpayers will be forced to subsidize low-cost package deliveries even though a robust and competitive private-sector shipping market already exists. Although USPS is required to pay close attention to how it attributes costs between packages and regular mail, the agency has barely budged on its fatally flawed pricing methodology.
After years of failure to reform, the Trump administration has begun to push for changes to the ailing agency. Shortly before announcing his resignation, Postmaster General Louis DeJoy reported signing an agreement to bring in Department of Government Efficiency advisers to help identify and accomplish substantial cuts and new efficiencies. This agreement would not have happened without a substantial push by the White House to get the postal budget under control.
Mr. Steiner, tapped this month by Mr. Trump and the USPS governing board to lead the Postal Service, is a career businessman with significant private-sector experience. His appointment provides hope to those who rightly believe USPS needs a fresh approach that emphasizes keeping costs under control. At the same time, Congress can and should take steps to stop the Postal Service from burning through taxpayer dollars. This should include a serious reconsideration of the agency’s mission, starting with amending the Postal Service Reform Act to require USPS to operate as a self-sufficient agency without relying on taxpayer subsidies to cover its losses or fund inefficient business practices. USPS was able to meet this mandate until 2006 and should be able to do so now.
The American people should not be forced to fund an organization that has consistently failed to address its structural issues. Mr. Trump, Mr. Steiner and other leaders in Washington have a chance to turn things around. America’s mail carrier needs reform, not another taxpayer-funded bailout.
• Ross Marchand is a senior fellow for the Taxpayers Protection Alliance.
Please read our comment policy before commenting.