May 7 (UPI) -- Louis DeJoy, a former Republican Party fundraiser and ally of President Donald Trump's, has been appointed postmaster general.
The United States Postal Service board of governors said the North Carolina businessman's appointment, announced late Wednesday, will take effect June 15. He will replace Megan Brennan, who was appointed in 2015 as the first woman in the post.
"Louis DeJoy understands the critical public service role of the United States Postal Service, and the urgent need to strengthen it for future generations," USPS board Chairman Robert Duncan said in a statement.
"The board appreciated Louis' 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."
DeJoy was formerly chairman and CEO of New Breed Logistics, a small transportation company in Greensboro, N.C. The company was a USPS contractor for more than 25 years.
"Having worked closely with the Postal Service for many years, I have a great appreciation for this institution and the dedicated workers who faithfully execute its mission," said DeJoy, who was tapped last year to lead fundraising efforts for the 2020 Republican National Convention in Charlotte, N.C.
DeJoy will be the fifth postmaster general to join the USPS from the private sector since it became an independent business in 1971. The USPS has lost $65 billion since 2009 and warned last month it could run out of money by the end of September.
Trump has been critical of the USPS and threatened to end future subsidies unless it started charging more to deliver packages for Internet-based retailers like Amazon.
A bipartisan group of lawmakers sent a letter to congressional leaders last week calling for $75 billion in coronavirus emergency funding for the Postal Service. The USPS estimates revenue losses of $13 billion this fiscal year, $10 billion next fiscal year and $54 million over the next decade due to the heath crisis.