Political Battle Over USPS Future, Fed Bailout Continues as Mail Declines
While the U.S. Postal Service gets tossed around like a political football and threatens insolvency without more federal aid, the agency continues to report poor results as already lower mail rates have fallen through the floor in the midst of the coronavirus pandemic.
Meantime, Louis DeJoy, a Republican donor, fundraiser and ally of President Donald Trump, has been approved as the new Postmaster General, and will take over the role from retiring Megan Brennan on June 15. Trump has repeatedly lambasted the USPS, saying it undercharges Amazon in a sweetheart deal, calling for privatization and vowing to deny bailout funding unless the agency raises parcel rates by a whopping 400%.
“Trump is spot on with his demand that the USPS first manage its book of business before they get a bailout,” said parcel shipping consultant Jerry Hempstead. “But Congress has to change the rules that the USPS is under to fix the problem.”