A businessman who donated to President Donald Trump was named as head of the U.S. Postal Service, which could face a significant restructuring as it faces pressure from the president to hike prices and billions in added debt.
Louis DeJoys selection as postmaster general of the United States was announced Wednesday by the services Board of Governors.
The businessman “understands the critical public service role of the United States Postal Service, and the urgent need to strengthen it for future generations,” Robert Duncan, chair of the board, said in a statement.
Members “appreciated Louiss depth of knowledge on the important issues facing the Postal Service and his desire to work with all of our stakeholders on preserving and protecting this essential institution,” Duncan added.
DeJoy was previously chairman and CEO of New Breed Logistics, a shipping company with over 9,000 employees.
He said his work brought him into contact with the Postal Service.
“I have a great appreciation for this institution and the dedicated workers who faithfully execute its mission,” he said in a statement.
One of the CCP virus relief packages approved by Congress lets the Postal Service borrow up to $10 billion from the Department of the Treasury. Postmaster General Megan Brennan, who is retiring, said last month that sales were “plummeting” as a result of the COVID-19 pandemic.
“The sudden drop in mail volumes, our most profitable revenue stream, is steep and may never fully recover,” she said, releasing an estimate that the services net operating loss would grow by more than $22 billion by the end of 2021.
Trump on Pricing
Trump later in April said he wont authorize more funding for the Postal Service unless it raises shipping rates for Amazon and other companies it handles packages for.
“The Postal Service is a joke because theyre handing out packages for Amazon and other internet companies. And every time they bring a package, they lose money on it,” Trump told reporters at the White House.
Amazon and other online-based companies are dropping a big portion of packages off at post offices, leaving the Postal Service to deliver them but lose money in the process, the president said. The Postal Service should raise prices by about four times, he added.
“For some reason—these people have been in there a long time—but for some reason, theyre very cozy with some of these companies, and they dont raise the price of a package,” he added.
Both DeJoy and his wife, Aldona Wos, have donated extensively to Trump and Republicans. DeJoy donated more than $1.1 million to the Republican National Committee (RNC) and nearly $1 million to Trump Victory, a joint fundraising committee between Trumps reelection campaign and the RNC.