USPS Under New Leadership: David Steiner’s Appointment Sparks Debate Over Privatization and Financial Survival

The U.S. Postal Service (USPS) faces a pivotal crossroads with the May 9, 2025, appointment of David Steiner as its 76th Postmaster General. Steiner, a former Waste Management CEO and current FedEx board member, inherits an agency grappling with a $3.3 billion quarterly loss, political pressures, and union skepticism over his ties to a competitor. His leadership will test USPS’s ability to balance financial survival with its public mission of universal service.

The Steiner Appointment: A Catalyst for Conflict

Steiner’s selection by the USPS Board of Governors has ignited immediate backlash. Critics, including Democratic lawmakers and postal unions, argue his FedEx affiliation creates a conflict of interest. “This isn’t just a corporate move—it’s a threat to USPS’s independence,” said Brian Renfroe, president of the National Association of Letter Carriers.

The key data point: USPS reported a net loss of $3.3 billion in Q2 of fiscal 2025, nearly doubling its loss from the prior year. Steiner inherits a 10-year modernization plan, Delivering for America, which has drawn criticism for service delays and rate hikes but also boasts cost-saving measures like reduced transportation expenses.

Steiner’s Background and the Privatization Debate

Steiner’s corporate experience—12 years as CEO of Waste Management, where he restructured operations and expanded environmental services—positions him to address USPS’s financial challenges. However, his role on FedEx’s board has fueled concerns about privatization.

Political tensions: The Trump administration has advocated merging USPS with the Department of Commerce or installing loyalists on the Board of Governors. With four vacant board seats, Steiner’s confirmation coincides with efforts to reshape USPS governance.

“Steiner’s ties to FedEx are a red flag,” said Rep. Gerry Connolly (D-VA), chair of the House Oversight Committee. “This smells of corporate capture.”

Labor Relations and Financial Realities

USPS employs 635,000 workers, the largest unionized workforce in the U.S. Steiner has pledged collaboration with unions but faces skepticism. The American Postal Workers Union likened his appointment to “a fox guarding a henhouse,” citing FedEx’s non-unionized workforce.

Financially, USPS’s $9.5 billion annual deficit underscores its reliance on parcel delivery profits to offset losses from letter mail. Steiner must navigate rising costs—workers’ compensation adjustments contributed $2.5 billion to Q2 losses—while maintaining service to 169 million addresses.

The Path Forward: Balancing Act or Backlash?

Steiner’s success hinges on three factors:

1. Financial Turnaround: Can he stabilize USPS’s finances without further cuts to rural service or postal workers’ benefits?
2. Union Engagement: Will he address labor concerns or face strikes over privatization fears?
3. Political Autonomy: Can he resist pressure to merge USPS with other agencies or adopt a corporate model?

Chair Amber McReynolds defended the appointment, stating, “Steiner’s leadership will ensure USPS thrives as an independent, universal service provider.”

Conclusion: A High-Stakes Gamble for USPS’s Future

David Steiner’s tenure as Postmaster General marks a critical juncture for USPS. With a $3.3 billion quarterly loss and political winds pushing privatization, his ability to balance financial discipline with universal service will define the agency’s legacy. Investors and stakeholders should monitor:

• Financial Metrics: USPS’s ability to reduce losses through Delivering for America reforms.
• Labor Relations: Union negotiations and potential disruptions.
• Governance Shifts: Board appointments and policy changes under the Trump administration.

The stakes are clear: If Steiner can transform USPS without compromising its public mission, he may secure its future. If not, the agency risks becoming another casualty of corporate and political ambition.