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The Daily Insight

When did government take over Postal Service?

Author

Sarah Duran

Published May 17, 2026

1971
In 1971, an act of Congress turned the Post Office Department into the United States Postal Service, a government-owned company expected to generate enough revenue to pay for itself. For nearly two centuries, taxpayers had funded the Post Office to help build a nation. Now, the nation was deemed built.

What role did the new postal system play in the Civil War?

Communication was vital during the Civil War and the post office was the main source for relaying information. The telegraph service was not as dependable as both sides took turns cutting the wires and destroying the service. Mail did not always get through as easily and quickly as one would think.

Will Amazon stop using USPS?

In general, analysts predict that Amazon will continue to in-source its delivery away from the USPS simply because its own network can deliver a package for cheaper — particularly in urban areas, said Nicholas Farhi, a partner at OC&C Strategy Consultants.

When did the post office become an independent agency?

It replaced the cabinet-level Post Office Department with the independent United States Postal Service on July 1, 1971. The regulatory role of the postal services was then transferred to the Postal Regulatory Commission.

Who was the first Postmaster General of the United States?

It was headed by the Postmaster General . The Postal Service Act, signed by U.S. President George Washington on February 20, 1792, established the Department. Postmaster General John McLean, in office from 1823 to 1829, was the first to call it the Post Office Department rather than just the “Post Office.”…

When did the post office start saving money?

In 1912, carrier service was announced for establishment in towns of second and third class with $100,000 appropriated by Congress. From January 1, 1911, until July 1, 1967, the United States Post Office Department operated the United States Postal Savings System.

Do you get tax dollars for the postal service?

The Postal Service says on the facts page of its website that it does not receive tax dollars for its operations, but some context is necessary here. First, let’s look at its current situation.