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Elon Musk and Donald Trump want to privatize the U.S. Postal Service after years of billion-dollar losses. Unions say it’s a ‘terrible idea’

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The U.S. Postal Service is facing an uncertain future after the resignation this week of Postmaster General Louis DeJoy and the suggestion by President Donald Trump and Elon Musk, who heads the Department of Government Efficiency, that the mail service could be privatized.

Unions representing postal workers have balked at the idea of privatization, staging protests across the country.

While they support modernization efforts, including those initiated by DeJoy, union leaders warned that allowing private corporations to run the U.S. mail will ultimately harm everyday citizens, especially the estimated 51 million people living in rural areas who depend on the Postal Service.

“It’s a terrible idea for everyone that we serve,” National Association of Letter Carriers President Brian L. Renfroe said during a panel discussion at the National Press Club in Washington, D.C., on Tuesday.

What happens next may depend on who becomes the next postmaster general. The U.S. Postal Service Board of Governors, an independent establishment of the executive branch that oversees the Postal Service, has retained a global consulting firm to conduct a search for the 76th postmaster general and CEO.

USPS currently employs about 640,000 workers tasked with making deliveries from inner cities to rural areas and even far-flung islands.

Trump and Musk look to make big changes to the USPS

In February, Trump said he may put the U.S. Postal Service under the control of the Commerce Department in what would be an executive branch takeover of the agency, which has operated as an independent entity since 1970.

“We want to have a post office that works well and doesn’t lose massive amounts of money,” Trump said during the swearing-in ceremony for Commerce Secretary Howard Lutnick. “We’re thinking about doing that. And it’ll be a form of a merger, but it’ll remain the Postal Service, and I think it’ll operate a lot better.”

While he didn’t say anything about privatization at the event, the president has voiced support for the idea in the past. In December, he suggested privatizing the service given the competition it faces from Amazon, UPS, FedEx and others.

“It’s an idea a lot of people have had for a long time. We’re looking at it,” the president said.

Musk, meanwhile, voiced support this month at a tech conference for privatizing the Postal Service, saying, “We should privatize anything that can reasonably be privatized,” the New York Times reported.

Postal workers protest, warn Americans may lose a beloved service

Across the country, postal workers have been staging protests in recent days, many chanting “U.S. mail not for sale,” and some holding signs that read: “The post office belongs to the people, not billionaires,” a reference to Musk.

Renfroe said the goal of the protests is to make the American public aware that drastic changes are being considered for the Postal Service.

“Our message is: ‘No.’ Private business is interested in doing things that are profitable, as they should be,” he said.” But that is the distinction between private business and what we are, a public service, where we serve everyone, everywhere, no matter where they live, for the same price every day.”

How did the USPS end up in such a bad financial position?

Since a reorganization in 1970, the USPS has been largely self-funded. The bulk of its annual $78.5 billion budget comes from customer fees, according to the Congressional Research Service. Congress provides a relatively small annual appropriation — about $50 million in fiscal year 2023 — to subsidize free and reduced-cost mail services.

Amid challenges that include the decline in profitable first-class mail and the cost of retiree benefits, the Postal Service accumulated $87 billion in losses from 2007 to 2020. However, the service reported a $144 million profit last quarter, attributing it to DeJoy’s 10-year plan to modernize operations and stem losses. The service had reported a net loss of $2.1 billion for the same quarter last year.

“By steadily improving our product portfolio, we are increasing our competitive position in the shipping marketplace,” DeJoy said in a written statement February accompanying the first quarter results for Fiscal Year 2025.

Union leaders said Wednesday that they hope the next postmaster general sticks with the modernization plan and considers harnessing the Postal Service to provide other services to the public, including basic banking, electric vehicle charging and even U.S. Census work.

“Our network of physical locations, retail locations … our delivery network, puts us in a position to do so many different things,” Renfroe said.

This story was originally featured on Fortune.com



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U.K. PM Starmer confirms Trump’s 10% levies will hurt the British economy: ‘Nothing is off the table’

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UK Prime Minister Keir Starmer told business chiefs at his Downing Street office on Thursday that “clearly there would be an economic impact” from a 10 percent tariff imposed on British exports to the United States.

“Last night the president of the United States acted for his country, and that is his mandate. Today, I will act in Britain’s interests with mine,” said Starmer, adding that trade negotiations would continue with Donald Trump’s administration and that “we will fight for the best deal for Britain”.

Stressing that “nobody wins in a trade war”, Starmer vowed to respond with “pragmatism, cool and calm heads”.

“We have a range of levers at our disposal, and we will continue our work with businesses across the country to understand their assessment of these options,” he said.

“Our intention remains to secure a (trade) deal. But nothing is off the table, he said.

“We have to understand that just as with defence and security, so too for the economy and trade we are living in a changing world,” he said.

This story was originally featured on Fortune.com



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ICE arrests 37 people in Washington roofing firm raid: ‘They arrived wielding their guns like they were going to shoot us’

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Federal immigration agents arrested 37 people Wednesday during a raid at a roofing business in northern Washington.

Officials from U.S. Immigration and Customs Enforcement’s Homeland Security Investigations unit and Customs and Border Protection arrived at Mt. Baker Roofing’s warehouse around 7:30 a.m. in Bellingham, a city near the Canadian border.

“They (law enforcement) arrived wielding their guns like they were going to shoot us, like we were criminals,” Tomas Fuerte told Cascadia Daily News, speaking in Spanish. “They corralled us into a room in the back of the building. They had a list and pictures of everyone who was undocumented and took them away.”

The people detained were taken away in two buses, Fuerte said, adding that he has never seen such a raid in his 12 years at the company.

ICE spokesperson David Yost said in a statement that the officers executed a federal search warrant “based on an ongoing criminal investigation into the unlawful employment of aliens without legal work authorization in violation of federal law.”

The 37 people who were arrested had “fraudulently represented their immigration status and submitted fraudulent documents and/or information to seek employment,” Yost said.

Mt. Baker Roofing said in an afternoon statement that it was “fully cooperating with the authorities while also ensuring that our employees are treated fairly and respectfully under the law.”

ICE says it made 32,809 arrests in President Donald Trump’s first 50 days in office. That was a daily average of 656, up from 311 during the 12-month period that ended Sept. 30.

Such numbers, while higher than those seen during the Biden administration, are far from the mass deportations that Trump campaigned on. So far the president has avoided the large-scale factory and office raids that characterized his first term and that of a Republican predecessor, George W. Bush, but there have been scattered and smaller operations.

Criminal charges against business owners are extremely rare, though fines are common.

This story was originally featured on Fortune.com



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Why a16z’s ‘speedrun’ accelerator is playing a new game

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