Different Face, Same Song

Different Face, Same Song
By Ivan D. Butts
NAPS National President

Hello, my NAPS brothers and sisters. When our previous postmaster general was appointed with the approval of President Trump, I wrote in my Postal Supervisor column that never before had a proponent of postal privatization been so close to the doorstep of the United States Postal Service. Recent developments suggest that concern remains relevant today.

On March 4, 2026, Bloomberg reporter Cailley LaPara published an article titled “U.S. Postal Service Taps Restructuring Firm Amid Cash Crunch” in its bankruptcy section — that immediately caught my attention. The placement made more sense after reading a statement from PMG David Steiner who said, “We’ve been bankrupt for a long time.”

The decision by the Postal Service — under a second postmaster general appointed with the approval of President Trump — to hire restructuring advisers Alvarez & Marsal carries significant economic and policy implications. It raises deeper questions about the future of public postal services in the United States and could reshape parts of the logistics and delivery industry.

Three major areas of impact stand out: privatization risk, postal reform and policy debate and the impact on the logistics industry. I would like to discuss each of these impacts.

Privatization Risk

One of the most significant implications is the increased possibility of partial or full privatization of the USPS. Discussions about privatization are occurring in the context of long-standing financial challenges. The USPS has experienced persistent financial losses, declining First-Class Mail volume due to digital communication, high fixed costs associated with maintaining a nationwide delivery network and workforce and limited financial flexibility because it is a government-created entity.

Some policymakers — including statements previously associated with President Trump — have suggested privatizing the Postal Service or moving it under the Department of Commerce. However, the potential negative consequences of privatization could far outweigh any possible benefits.

Privatization could lead to higher postage costs, reduced service in rural areas and the weakening or elimination of the universal service obligation. Potential benefits often cited include:

  • Greater pricing flexibility
  • Improved operational efficiency
  • The ability to raise capital through private markets

But the USPS has a constitutionally rooted mission: to deliver mail to every address in America, even when it is not profitable. America’s Postal Service is exactly that — a service to the American people and not simply a corporate enterprise.

Postal Reform and Policy Debate

This situation also intensifies the long-running debate about how the U.S. postal system should be structured and funded. Several policy constraints continue to affect the USPS.

For example, the Postal Service faces a $15 billion borrowing limit that has not been updated since the 1970s. In addition, postage increases must be approved by regulators, limiting the agency’s ability to adjust prices quickly in response to changing conditions.

NAPS fully supports the universal service obligation that commits the USPS to providing affordable service nationwide.

Congress may consider several reforms, including increasing the USPS’ borrowing authority to help finance modernization efforts currently underfunded. Lawmakers also may consider adjusting pricing rules to allow more flexibility in postage rate changes.

At the same time, if the USPS intends to remain a major player in the package delivery market, it must maintain strong delivery standards — including six-day delivery.

The Postal Service also should consider expanding into new business areas such as postal banking, expanded logistics services and government service delivery hubs.

Different Face, Same Song

Ultimately, these reforms will help determine whether the USPS remains primarily a public service or evolves into a more commercialized organization.

Logistics Industry Impact

The USPS operates one of the largest logistics networks in the country, meaning any restructuring would affect competitors and partners. Major companies impacted would include UPS, FedEx and Amazon.

One market advantage unique to the agency is last-mile delivery. Many companies rely on the Postal Service for this final step because the USPS already visits every address in the country. In many cases, USPS delivery also is more affordable than private alternatives.

If the Postal Service expands partnerships or provides greater access to its delivery network, private carriers could become increasingly dependent on the USPS’ infrastructure. This could position the Postal Service as a national logistics platform.

At the same time, if the USPS becomes more commercialized, it may compete more directly with companies such as UPS and FedEx. Increased package volume could shift market share in the more than $200 billion U.S. parcel industry.

Additional ideas — such as advertising on delivery vehicles or mailboxes — also could create new revenue models, turning the agency’s infrastructure into a nationwide marketing network. This reflects a broader trend of government infrastructure being used commercially to offset public costs.

Broader Economic Impact

  • Beyond the delivery industry, the Postal Service supports a trillion-dollar mailing industry that touches nearly every sector of the economy. Any restructuring will have wide-ranging implications for:
  • Small business shipping costs
  • E-commerce logistics
  • Rural connectivity
  • Access to government services
  • Hundreds of thousands of jobs

The USPS employs roughly 640,000 workers, making it one of the largest employers in the United States.

Ultimately, this restructuring effort is not just about improving USPS finances. It could determine whether the United States continues to maintain a traditional public postal service or moves toward a more-privatized logistics model.

In solidarity …