White House denies plans to take control of Postal Service, which could lead to privatization, end service to rural customers | CNN Business

The Washington Post first reported late Thursday, citing numerous anonymous sources, that President Donald Trump planned to disband the US Postal Service’s Board of Governors and place the agency under direct control of the Commerce Department and Secretary Howard Lutnick. The Wall Street Journal also Friday reported on the plan to dissolve the commission, citing government officials.

The Postal Service did not respond to requests for comment. But a White House official denied that Trump planned to sign such an order.

“This is not true. No such EO (executive order) is in the works, and Secretary Lutnick is not pushing for such an EO,” a White House official told CNN.

However the denial from the White House was silent on the question as to whether it is interested in privatizing the service, which is something that Trump has voiced support for in the past.

In December, then President-elect Trump said privatizing the USPS is “not the worst idea I’ve ever heard.”

But it’s unlikely Trump would be able to privatize the agency without Congressional approval, given the many federal laws that control the quasi-independent service. Among those laws is the one requiring universal delivery, as well as one outlawing a strike by USPS employees. With a 630,000-person work force, 91% of whom are covered by union contracts, the USPS is the nation’s largest unionized employers.