The Steiner Storm: Can USPS Navigate Privatization Crosscurrents?
11min read The U.S. postal service (USPS) faces its latest leadership reckoning with the May 9, 2025, appointment of David Steiner as Postmaster General—a decision that has ignited a firestorm of controversy over conflicts of interest, financial instability, and the future of public postal services. Steiner, a former Waste Management CEO and current FedEx board member, steps into a role that could redefine USPS’s trajectory amid existential fiscal pressures and political maneuvering.
The Conflict of Interest Storm
Steiner’s ties to FedEx, USPS’s fiercest competitor in the parcel delivery sector, have drawn immediate criticism. The National Association of Letter Carriers (NALC) condemned the appointment as a “blatant conflict of interest,” warning that Steiner’s corporate background threatens USPS’s mission as a public institution. NALC President Brian Renfroe accused the Trump administration of pushing to “hand America’s mail system over to corporate interests.”
The political backlash is equally fierce. Rep. Gerry Connolly, the top Democrat on the House Oversight Committee, called the selection “a Trojan horse for privatization,” citing Steiner’s ongoing FedEx board role as proof of bias. Even more contentious: Steiner retains FedEx stock valued at $34,000 as of July 2024, despite pledging to resign from his board position before joining USPS.
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Financial Bleeding and the Path Ahead
USPS’s financial health is in freefall. The agency reported a $3.3 billion net loss for the second quarter of fiscal 2025—a doubling of its $1.5 billion deficit from the prior year. . Uncontrollable costs, including workers’ compensation adjustments, have compounded the crisis.
Steiner inherits a 10-year “Delivering for America” modernization plan spearheaded by his predecessor, Louis DeJoy, which critics argue worsened service delays and increased costs. The plan’s emphasis on parcel delivery efficiency clashes with USPS’s legal mandate to provide universal mail service—even in unprofitable rural areas.
The Privatization Playbook
The Steiner appointment is part of a broader Trump administration push to restructure USPS. Proposals include transferring oversight to the Commerce Department or merging USPS with private entities—a move critics call a backdoor privatization strategy.
Steiner’s corporate pedigree feeds these fears. As Waste Management CEO, he slashed costs and expanded services, but USPS’s unique public mission—a lifeline for millions—requires balancing profitability with accessibility. “Steiner’s track record is in cutting costs, not subsidizing rural mail,” says postal analyst John Miano. “That’s a recipe for service cuts and higher prices.”
Investor Implications: Riding the Postal Wave?
For investors, USPS’s future is a high-stakes bet. The agency’s $3.3 billion loss highlights its reliance on package revenue, which now accounts for 62% of USPS’s income, up from 50% in 2019. Competitors like FedEx and UPS are capitalizing:
Meanwhile, USPS’s status as a self-funded entity with no federal subsidies leaves Steiner little room to maneuver. “He’s got a sinking ship and a shark tank of competitors,” notes financial columnist Sarah Lin. “Investors should brace for more losses—and maybe a government bailout.”
Conclusion: Steiner’s Crossroads
David Steiner’s tenure as Postmaster General hinges on navigating three simultaneous crises: financial insolvency, union opposition, and political overreach. The numbers are stark: USPS’s decade-long losses now total over $80 billion, with no end in sight. Steiner’s pledge to “modernize” USPS could mean layoffs, higher postage rates, or a retreat from universal service—all of which would spark further backlash.
For investors, the risks are clear. USPS’s reliance on package revenue in a hyper-competitive market, coupled with its legal obligations to unprofitable rural routes, creates a structural imbalance. Steiner’s corporate playbook may not be the cure—and could accelerate the push for privatization.
The Steiner era begins with a storm, not a sunrise. Whether USPS emerges as a lean, private competitor or a defunded public relic depends on how Steiner balances profit and principle in the coming months. For now, the only certainty is this: the postal service’s future is anything but delivered.
