The United States Postal Service (USPS) has long needed to get its finances under control and improve its service.

But achieving that objective should be done in a manner that does not lead to an imminent bailout, which is what would occur if package and mail delivery is separated, either within the current structure or by selling or moving package delivery to the private sector.  USPS package deliveries currently net more than $10 billion annually and help to defray expenses that are not otherwise offset throughout the overall network.  If package deliveries are taken away, then the only purpose of the USPS would then be last mile delivery of mail, which would guarantee and hasten its financial demise, leaving taxpayers on the hook for tens of billions of dollars in infrastructure, labor, and sorting costs.

Citizens Against Government Waste has made recommendations for reforms that should be included in reconciliation, including a freeze on nonessential capital expenditures that are not related to essential investments related to core functions like final mile delivery of mail and packages.  The size of the non-carrier labor force should be reduced to match workload, which means Congress must require the USPS to reduce the number of career full-time workers by at least the same percentage as the decline in total mail and package volume for all functions other than carriers who provide final-mile mail and package delivery.

Congress should also require the USPS to reduce costs and improve service performance, maximize package volumes and contribution, and maintain final mile package delivery products with standard one day service.  Forcing shippers to pay more for slower service caused package volume to stagnate and profits to drop by nearly $2 billion in fiscal year 2024.

Finally, existing transportation and workshare discounts should be preserved and related activities should be done by the USPS or the private sector after determining which entity can perform those functions more efficiently. 

Both Congress and DOGE should be taking a close look at USPS and recommend changes to fix its finances and require adherence to its core functions and mission.  That should be done without separating package and mail delivery or otherwise exacerbating financial losses and hastening a collapse that will require a substantial and immediate taxpayer bailout.