(Reuters) – U.S. President-elect Donald Trump has expressed eager curiosity in privatizing the U.S. Postal Service in latest weeks, the Washington Submit reported on Saturday, citing three individuals acquainted with the matter.
The U.S. Postal Service, which has misplaced greater than $100 billion since 2007, reported a internet lack of $9.5 billion for its fiscal yr ending Sept. 30, a loss $3 billion bigger than that of final yr, largely as a consequence of a year-over-year decline. elevated non-cash staff’ compensation bills.
When knowledgeable of the company’s annual losses, Trump stated the federal government mustn’t subsidize the group, in response to the Washington Submit.
Trump, who takes workplace on Jan. 20, mentioned his want to denationalise the Postal Service with Howard Lutnick, his alternative for Commerce secretary, at Mar-a-Lago, in response to the report.
Individuals who will work on the Division of Authorities Effectiveness, led by Elon Musk and Vivek Ramaswamy, have additionally had preliminary conversations about main adjustments to the USPS, the report stated, citing two different individuals acquainted with the matter.
The U.S. Postal Service and Trump’s transition crew didn’t instantly reply to requests for touch upon the report.
Any try to privatize the Postal Service may disrupt the U.S. e-commerce trade, the Washington Submit stated, together with Amazon (NASDAQ:), which makes use of USPS for “final mile” supply between postal distribution facilities. ‘Amazon and clients. It may additionally harm small companies and rural customers who use the Postal Service, as it’s the solely service that can ship to distant areas of the nation.
Amazon not too long ago introduced it was donating $1 million to Trump’s inaugural fund and would stream his inauguration on its Prime Video service.
Trump has had a strained relationship with the Postal Service. Sources instructed Reuters his transition crew was contemplating canceling the service’s contracts to affect its supply fleet.
Sources say the crew is inspecting the way it can unwind the service’s multibillion-dollar contracts, together with with Oshkosh (NYSE:) and Ford (NYSE:), for tens of hundreds of supply vehicles and charging stations battery powered.
In 2020, Congress approved the Treasury Division to lend the Postal Service as much as $10 billion as a part of a $2.3 trillion coronavirus stimulus bundle, which Trump threatened to dam.
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