What are the Proposed 2025 Changes at USPS and What Should We Do About Them?

When it comes to the Unites State Postal Service, months of whispers seem to be reaching a crescendo. The USPS, a department older than the country itself and turning 250 this year, is on the heels of significant changes. With the new US administration in office, reports are pointing to Trump making significant and swift changes the structure of the USPS.  

No action is needed for ecommerce shippers, but everyone affected should stay abreast and aware of what the ripple effects could be if these predictions come to fruition.  

What’s Changing at USPS

The Postmaster General

The most recent change is the announcement on Feb 18, that Louis DeJoy, Postmaster General will step down. The search for a replacement should begin. While the details are yet to be determined, the wheels are in motion.  

Service Consolidations and Agreements with Consolidators

Within the mix of disruption, there have been significant changes to the parcel side of the business in the last few years. PMG DeJoy absorbed the lightweight First Class Package Service product in 2023, along with a few other products, into USPS Ground Advantage. The First Class Package Service product had previously been flown (certain destinations) but now was entirely on the ground. Ground Advantage and Priority Mail were now the primary, USPS direct parcel options. 

The biggest disruption to the parcel side came last year with service changes that downstream eliminated how consolidator carriers interact with USPS. These changes forced volume upstream and elimination of certain pricing and discount layers. (Read the details here.)  

Analysis of its Mission and Trajectory

USPS is halfway through a 10-year plan, called Delivering for America (DAF), that was put in place to improve services and bolster the organization.  

In the last five years there have been concerns that the USPS has not met the goals of DAP. The service reported a loss of $9.5 billion in 2024, (ending the year with $4.62B cash on hand, which is down from $8.06B in 2023 and $19.61B in 2022).  

Declining volume, coupled with Ground Advantage cannibalizing its own more expensive Priority Mail offering, have played a part. As has limitations on how the USPS can invest pension funds. 

Also network consolidations caused some service issues in certain areas of the country, notably in congressional districts, that caught the attention of the elected officials from these districts. This resulted in Postmaster General DeJoy being invited to testify in front of Congress. 

Concerns and Speculations for Changes at USPS

Will the Postal Service Become Privatized?

Likely not, here’s why. Soon after the election, hints of privatization of the USPS were circulating. Washington Post reported on Dec 14, 2024, that Trump had been discussing an overhaul to the USPS with Howard Lutnick, since confirmed as Secretary of Commerce. On Jan 19, 2025, Washington Post reported that the Trump team was looking to oust DeJoy and replace him. Jarret Streebin, founder and CEO of EasyPost, was reportedly advising the new administration, and three possible replacements were named: Robert Taub, vice chair of the Postal Regulatory Commission, Thomas Day, a member of the Postal Regulatory Commission, and Jim Cochrane, CEO of the Package Shippers Association.  

Now conversations have now shifted from privatization to significantly changing the governance of the Postal Service. The newest development is reports that Trump is expected to take control of the USPS, by way of an executive order that would fire the Board of Governors.  

Will the Governance Structure of the Postal Service Change?

The Postal Service is currently a separate entity of the government, it has its own governance, not directly linked to any single branch of government. The Postmaster General position is accountable to the postal board, and while the leaders of the USPS can be nudged by congressional appeal and legislation, in essence the leadership of the USPS can largely operate and make decisions within the guidance of the postal board.     

Trump has proposed changes that would change this governance model. Reports say he may sign an executive order to have the USPS sit under the the Department of Commerce, which would put the Postmaster General as a direct report of the Executive branch. 

What Actions Should Ecommerce Shippers Take

No action should be taken in haste. If anything, shippers shouldn’t move away from, or to, another service just based on these news cycles, even if your shipping service touches the USPS. 

While the proposed changes are radical, they will take time to play out.  

At the end of this, significant changes to the USPS could result in restoration or, at minimum, a more dynamically competitive shipping market.  

Historically, the Postal Service was created to bind the nation together for commerce. It was created to meet a need for information and communication to reach all parts of our nation at the same time.  

USPS has the largest network of addresses it delivers to with reasonably slim resources. Where other carriers may change much more or take much longer delivery times, there are many areas of the United Stats that only USPS can feasibly delivery to.  

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