The Government's Role in Running USPS: A Constitutional Requirement and Quasi-Governmental Contractor

Mail delivery is widely recognized as an essential service in the United States. This is why the United States Postal Service (USPS) was established under the federal government. However, to prevent a significant financial burden on the public, it was reorganized as a quasi-governmental contractor, with very little direct funding from the government. In this article, we will explore the reasons behind these decisions and the role of the USPS as a governmental communication service.

Essential Service

The USPS has served as a means of communication between virtually every person in the United States since its inception. It has provided a low-cost method for communication, making it accessible and essential for both individuals and businesses. The USPS is not a business in the traditional sense; it is a governmental communication service. Its primary purpose is to facilitate the exchange of information and connect people, particularly as the early form of a postal system during the founding of our nation helped the founding fathers communicate effectively.

Constitutional Mandate

The Constitution of the United States clearly outlined the responsibilities assigned to Congress, and Article 1, Section 8 explicitly states, 'To establish Post Offices and post Roads'. The Postal Service was a Cabinet-level department until the 1970 Postal Reorganization Act, which created the USPS as an independent agency under the Executive Branch.

Quasi-Governmental Structure

Despite being a quasi-governmental contractor, the USPS is required to operate as if it were a business. It relies on revenue generated from customers who mail letters and packages. However, the vast majority of its funding comes from equipment production contracts, with very little direct government funding. This structure helps to ensure that the USPS is accountable to its users and remains sustainable.

Historical Context

Benjamin Franklin, the second postmaster general of the United States, played a crucial role in establishing and overseeing the early postal service. He had experience as a Postmaster for the Crown and knew the business inside and out. This knowledge contributed to the successful establishment and operation of the USPS.

Conclusion

The USPS is not just another business; it is a constitutionally mandated service that plays a crucial role in the communication and economic activities of the United States. Its quasi-governmental structure ensures that it remains a vital institution, providing essential services while managing its financial operations with a level of independence and accountability.