The US Postal Service Commission has appointed Daniel Steiner as the new postmaster general. This comes as the postal service prepares to celebrate its 250th anniversary in July, which is pretty significant. However, the service is facing serious financial challenges, losing billions annually and experiencing poor service nationwide. The Government Accountability Office has listed the postal service as “high risk” since 2009, labeling its business model as “unsustainable.”
Steiner will take the reins in July, and he really needs to focus on a couple of key principles to steer the service back on track.
First off, maintaining consistent mail and package delivery to every address in the U.S. six days a week is crucial. This universal service obligation has been reinforced by Congress recently. While private companies have entered the delivery space, none can replicate the coverage and reliability of the postal service for last-mile delivery.
Secondly, echoing President Trump’s executive order aimed at improving government efficiency, there’s a pressing need for the postal service to collaborate more effectively with the private sector. Processing, logistics, and transportation—these areas are where private companies have excelled for years. The postal service should leverage technology and flexible contracts to enhance efficiency in these operations.
To make real progress on these priorities, Steiner must tackle several significant barriers affecting the postal service’s financial health and service quality.
For starters, he should promptly halt the American plan for agency delivery to reassess its execution. The Post Office Inspector General flagged complications linked to this initiative in a recent report, and there is considerable concern from both the Senate and the House regarding its implementation.
Next, Steiner should impose an immediate freeze on spending billions on new processing facilities that simply can’t compete with what the private sector already offers. A comprehensive review of the postal service’s real estate portfolio is also essential to determine what resources are actually needed for efficient email and package delivery.
Additionally, an employment freeze should be introduced for all non-delivery positions, particularly given the decline in email volumes. Since labor costs represent a large portion of postal service expenses, and with past layoffs impacting the workforce significantly, it’s vital to exempt delivery personnel from this freeze in order to maintain essential services.
Lastly, the so-called “regional transport optimization” initiative needs to be scrapped. Over 24,000 post offices, especially in rural areas, rely on effective mail and package delivery, and the Postal Regulatory Commission recently criticized this initiative for using a flawed model with adverse effects on service and inflated savings claims.
Universal Service obligations must be upheld across the U.S. Steiner should halt the regional transport optimization plan and bring back twice-daily mail and package pickups at all post offices.
The postal service must stop any plans that could disrupt delivery, revitalize its financial outlook, and ensure that communities continue to receive affordable and efficient mail and package services. After all, it’s something worth celebrating for the 250th anniversary.
