Historically, the postal service has operated without public funds. It’s been around longer than the nation itself.
But Postal Service officials this year — bracing for steep losses given the coronavirus shutdown — warn they’ll run out of money by September without help. They recently reported a $4.5 billion loss for the quarter ending March 31 — on $17.8 billion in revenue — before the full effects of the shutdown sank in.
Some in Congress want to set aside $25 billion from the nearly $3 trillion relief program to keep the mail flowing. But with Treasury Secretary Steven Mnuchin pushing President Donald Trump’s priorities, the postal service has so far landed just a $10 billion loan.
“The Postal Service is a joke,” Trump told reporters last month. “They’re handing out packages for Amazon and other internet companies and every time they bring a package, they lose money on it.”
He insists that higher package rates could ease the financial troubles. But most financial analysts disagree.
Packages typically account for just 5 percent of the Postal Service’s volume, but 30 percent of its revenue. And package revenue has actually gone up during the shutdown. Still, it hasn’t been enough to restore profitability, battered in the Internet age by the decline of first-class mail.
“There’s truly an agenda of this administration to undermine (it) to the point that they’re going to sell off the post office to a private corporation,” said Michael Dimondstein, president of the American Postal Workers Union, which represents about 200,000 of the 630,000 postal workers.
Earlier this month, its Board of Directors appointed Republican fundraiser Louis DeJoy to serve as the next Postmaster General.
All told, more than 2,000 have tested positive for the coronavirus, the Postal Service said. A union spokesman said 61 have died.
Trump has threatened to block the Postal Service from COVID-19 relief funding unless it quadruples the package rates it charges large customers like Amazon, owned by nemesis Jeff Bezos. Bezos also owns The Washington Post, whose coverage rankles Trump.
“He is willing to sacrifice the U.S. Postal Service and its 630,000 employees because of petty vindictiveness and personal retaliation against Jeff Bezos,” Rep. Gerry Connolly, D-Va., said last week. “That would be a tragic outcome.”