Original broadcast 2/2/25
The Trump administration is considering a major restructuring of the federal government by moving the U.S. Postal Service (USPS) under the Commerce Department, a decision that could significantly alter the way USPS operates and is managed. On Fed Gov Today with Francis Rose, Robert Shea, Co-Founder & Partner at Gov Navigators and former Associate Director at the Office of Management and Budget (OMB), and Scott Quehl, Vice President for Civilian Growth at Maximus and former Chief Financial Officer and Assistant Secretary for Administration at the Commerce Department, weighed in on the complexities, potential benefits, and hurdles of such a move.
Understanding the Proposal
Currently, USPS operates as an independent entity, separate from the executive branch. Its financial struggles, including long-standing deficits, have led to calls for reform, and this proposal represents a drastic shift in its governance structure. Shea noted that while agency mergers are uncommon, they are not unprecedented—Congress and the administration would need to coordinate legislative action to make it happen.
However, administrative hurdles abound. USPS is subject to oversight from multiple committees, including the Postal Regulatory Commission, and operates under various statutes that complicate any transfer to Commerce. “It’s entangled in a lot of different statutes,” Shea explained, “so while it’s independent, it wouldn’t be out of the question to bring it back into the federal government.”
Why the Commerce Department?
Quehl outlined why Commerce is being considered as a new home for USPS. He highlighted the department’s “can-do culture” and strong track record of managing diverse and complex operations, including the Census Bureau, National Weather Service, and Patent and Trademark Office. These agencies, much like USPS, require expert oversight and efficient customer service models.
However, despite Commerce’s capabilities, USPS presents an entirely different challenge. “Running the decennial census once every ten years is one thing,” Quehl said. “Managing daily delivery of 127 billion parcels a year is another.” He also pointed out the immense logistical, financial, and workforce challenges involved, with 500,000 employees, 250,000 vehicles, and 30,000 facilities under USPS’s jurisdiction.
The Challenges of a USPS-Commerce Merger
- Operational Differences – USPS runs on a continuous delivery model, while Commerce primarily oversees research and economic initiatives that operate on longer timelines.
- Political Pushback – Congress may resist losing oversight of USPS, especially as postal service delays remain a bipartisan concern.
- Financial Burdens – Any transition would require significant funding to ensure a smooth shift, adding costs rather than resolving USPS’s financial struggles.
- Leadership Complexity – The Commerce Secretary would have to take on Postmaster General duties, a major operational burden that could divert attention from other national priorities.
A Phased Approach?
Instead of a full-scale merger, Quehl suggested a more incremental approach. He proposed integrating USPS’s customer service operations with Commerce’s digital infrastructure, streamlining how Americans interact with USPS while allowing the core operations to remain separate.
Ultimately, both Shea and Quehl agreed that while the proposal might make sense in theory, the bureaucratic and political obstacles could make it difficult to implement in practice.
Key Takeaways
- A Complex but Possible Transition – While moving USPS under the Commerce Department would require legislative action and face significant political hurdles, experts say it’s not entirely out of the question.
- Operational Challenges – USPS operates at a massive scale, delivering 127 billion parcels annually, making it vastly different from Commerce’s existing functions, which focus more on economic development and research.
- Potential for Incremental Change – Instead of a full merger, integrating USPS’s customer service operations with Commerce’s digital infrastructure could be a more feasible first step.
This interviewed originally appeared on the 3/2/25 broadcast of Fed Gov Today. Watch the Full Program