President Donald Trump is considering privatizing the U.S. Postal Service as the agency faces mounting financial losses, including a staggering $9.5 billion deficit in the past fiscal year. Trump reportedly discussed the possibility with Howard Lutnick, his choice for commerce secretary, during a meeting at Mar-a-Lago. Concerned about the Postal Service’s financial strain, Trump questioned whether taxpayers should continue subsidizing the agency, sources revealed.

The Postal Service’s struggles are attributed to rising costs, including non-cash worker compensation expenses, despite generating nearly $80 billion in revenue. Privatization, if pursued, could significantly impact the shipping and e-commerce sectors, with companies like Amazon relying on the agency for last-mile delivery. It could also have far-reaching effects on small businesses, rural communities, and the livelihoods of hundreds of thousands of federal workers.

Trump has criticized the Postal Service in the past, referring to it as “a joke” during his first term and suggesting it raise package prices. While the agency has implemented cost-cutting measures, including reducing work hours and transportation expenses, Trump’s consideration of privatization could signal a major shift in its future. No official plan has been announced by Trump’s team.