The Trump administration is proposing a slew of changes to the U.S. Postal Service’s operations and workforce compensation in an effort it says will save $97 billion and put the financially strapped agency back on a stable path.
The White House included in its fiscal 2021 budget proposal all of the recommendations made by a task force President Trump created in 2018 to put USPS on a better course, saying the reforms would save the mailing agency from an existential threat. Absent changes, the administration estimated the agency would lose $7 billion this year and $8 billion per year through 2030.
As part of the reforms, the administration said, the Postal Service should offer employees lower pay that would put them more in line with other federal employees. The plan also assumed the less generous retirement and health care benefits it proposed for the rest of the federal workforce would also apply to USPS employees.
The Postal Service should have a more flexible rate-setting system, the administration said, enabling it to raise prices significantly on most packages and other services it considers “non-essential.” It should also change its standards to enable less frequent mail delivery and allow the private sector to conduct some mail sorting. The White House plan would give outside entities access to mailboxes and provide new revenue streams at post offices.