PHILADELPHIA — On Friday, President Donald Trump revealed that he is contemplating placing the U.S. Postal Service under the oversight of the Commerce Department. If enacted, this would represent a major change in how the agency operates, as it has functioned independently since its establishment in 1970.

“Our aim is to create a Postal Service that runs efficiently and avoids substantial financial losses,” Trump explained. “We are looking into this potential change, which might be seen as a merger; however, the Postal Service would maintain its unique identity, and we believe this could lead to significant operational improvements.”

Trump made these comments during the swearing-in ceremony for Commerce Secretary Howard Lutnick, describing the proposed transition as a way to tackle the financial challenges currently faced by the Postal Service, which operates with an annual budget of $78 billion and has been grappling with a decline in first-class mail volumes.

Commending Lutnick’s expertise in business, Trump remarked, “He possesses a sharp business intuition, which is precisely what we need at this moment. We believe we have the capacity to turn things around. The Postal Service has been a significant financial burden on our country, leading to considerable losses.”

Here are some essential facts about the U.S. Postal Service:

What is the history of the USPS?

The U.S. Postal Service traces its roots back to 1775, when Benjamin Franklin was appointed as the first postmaster general during the Second Continental Congress in Philadelphia. It became an executive branch department in 1872, but this changed following a significant strike over wages and benefits in 1970. In response, President Richard Nixon signed the Postal Reorganization Act, transforming the Postal Service into an independent and self-sustaining organization.

In recent years, the Postal Service has encountered severe financial challenges and has resisted calls for privatization from Trump and others.

Who is employed by the USPS?

The 1970 reorganization granted workers pay raises and collective bargaining rights, helping many Americans, particularly from minority backgrounds, attain middle-class status. Currently, the USPS employs around 640,000 individuals who are responsible for delivering mail, medications, election ballots, and packages across the country, including in rural and remote areas. Throughout the COVID-19 pandemic, postal workers continued their essential services, with over 200 fatalities reported by the American Postal Workers Union.

Who oversees the USPS?

Louis DeJoy, a Republican donor and former logistics entrepreneur, was appointed as Postmaster General during Trump’s first term in 2020. He has faced numerous challenges during his tenure, including the pandemic, spikes in mail-in voting, and efforts to curtail financial losses through cost-saving measures and service adjustments. Recently, he unveiled a 10-year plan aimed at revitalizing operations but has since indicated intentions to resign, prompting the Postal Service Board of Governors to seek a successor.

How is the USPS board structured and selected?

The U.S. Postal Service Board of Governors consists of up to nine members who are appointed by the president and confirmed by the Senate, with no more than five members from the same political party.

Currently, Amber F. McReynolds, a former election official from Colorado, serves as chair, with Derek Kan, who previously worked in the Trump administration, as vice chair. Both were appointed by President Joe Biden.

There are currently three vacancies on the board due to the Senate not voting on Biden’s nominees for those roles. Biden has appointed four of the six current governors, while Trump appointed two.

The board holds the authority to hire and dismiss the postmaster general, who, along with a deputy postmaster, also serves on the board.

How is the USPS funded?

Since its restructuring in 1970, the USPS has primarily relied on self-funding. Its annual budget of about $78.5 billion mainly comes from customer fees, according to the Congressional Research Service. Congress makes a small annual appropriation — roughly $50 million for fiscal year 2023 — to support free and reduced-cost mail services.

The Postal Service has faced challenges such as declining first-class mail revenue and the rising costs of retiree benefits, leading to $87 billion in losses from 2007 to 2020.

Last year, DeJoy introduced a 10-year plan aimed at modernizing operations and addressing financial losses, warning customers of potential “uncomfortable” rate increases as the Postal Service seeks to stabilize its finances.

Critics, including various members of Congress, have raised alarms that previous consolidations have resulted in slower service and fear that further consolidations could disproportionately affect rural mail delivery.

What is Trump’s perspective on the USPS?

Since his first term, Trump has been openly critical of the Postal Service. In 2020, he threatened to withhold COVID-19 relief funding unless the agency raised its package rates for major customers, such as Amazon, owned by billionaire Jeff Bezos, who also owns The Washington Post, a publication that has frequently drawn Trump’s criticism.

More recently, Trump has shown interest in privatizing the Postal Service, citing competitive pressures from companies like Amazon, UPS, and FedEx. “This is an idea that many have discussed for quite a while. We are currently looking into it,” he stated.