Latest News and Highlights

John McLeod Barger Nominated to USPS Board of Governors. On March 22, President Trump has nominated John McLeod Barger to be a member of the USPS Board of Governors (BOG). Barger, a California resident, is nominated for the remainder of a seven-year term expiring Dec. 8, 2021.

GAO Report on USPS Innovation. The Government Accountability Office (GAO) has completed its report on US Postal Service innovation. PostCom and some of our members were interviewed by the GAO during their work which focused on several recent USPS pilot efforts: Same-Day Delivery; Grocery Delivery; Informed Delivery; Keyless Parcel Lockers. The GAO has recommended that the Postmaster General should direct the Vice President of Product Innovation to develop policies that fully reflect leading practices for pilot design and evaluation in areas such as linking objectives and performance measures; documenting conclusions about scalability based on pilot results; and communicating with key external stakeholders, as appropriate. In addition, they advise the PMG to direct the VP of Product Innovation to develop tools, such as a template, or training to help ensure USPS consistently documents lessons learned at the conclusion of pilots, as required by USPS policies. 

White House 2020 Budget On March 11, the White House released its 2020 budget, which calls for $98 billion in savings from 2020-2029 by reforming the Postal Service. Annual savings from the unspecified reforms are projected to be just over $4 billion in 2020, and increasing to almost $13 billion in 2029.  The entire budget proposal can be found here starting on page 1216.

Ann Fisher Nominated to be Commissioner of the Postal Regulatory Commission.  On March 1, 2019 President Donald J. Trump announced his intent to nominate Ann C. Fisher as a Commissioner of the Postal Regulatory Commission.  Mrs. Fisher currently serves as Public Affairs and Government Relations Director of the Postal Regulatory Commission. Fisher spent 12 years on Capitol Hill in roles including Deputy Staff Director of the Senate Homeland Security and Governmental Affairs Committee. In this role she served as principal Senate Republican staff architect of the Postal Accountability and Enhancement Act of 2006 which modernized postal laws. 

USPS Reports Q1 FY 2019 Financial Results.  On February 8th, the USPS released their first quarter results for fiscal year 2019. The U.S. Postal Service reported total revenue of $19.7 billion for the first quarter of fiscal 2019 (October 1, 2018 - December 31, 2018), an increase of $553 million, or 2.9 percent, compared to the same quarter last year.  Most notably - First-Class Mail revenue declined by $81 million, or 1.2 percent, on a volume decline of 428 million pieces, or 2.8 percent, compared to the same quarter last year; Marketing Mail revenue increased by $218 million, or 4.9 percent, on volume growth of 1.0 billion pieces, or 4.8 percent, compared to the same quarter last year and Shipping and Packages revenue increased by $516 million, or 8.7 percent, on volume growth of 93 million pieces, or 5.4 percent, compared to the same quarter last year.

Michael Kubayanda Sworn in as Postal Commissioner  On January 29th, the Postal Regulatory Commission announced that  Michael Kubayanda had been sworn in as Postal Commissioner, filling the open Postal Regulatory Commissioner position formerly held by Ruth Goldway. The appointment runs until November 22, 2020. 

PRC Issues FY2018 Annual Report. On January 10th, the PRC released its Fiscal Year 2018 Annual Report to the President and Congress. The report is required by the Postal Accountability and Enhancement Act (PAEA) and provides a comprehensive summary of the PRC's efforts during the last fiscal year including the ten-year regulatory review (RM2017-3), determination of the appropriate share contribution to institutional costs from competitive products (RM2017-1), and supporting the efforts of the President's Task Force on the US Postal System.

PRC issues ruling on Institutional Cost Contribution Requirement for Competitive Products On January 3, the Postal Regulatory Commission issued Order No. 4963 in Docket RM2017-1; Institutional Cost Contribution Requirement for Competitive Products. As proposed earlier, the Order establishes a formulaic approach to determining the “appropriate” share of contribution to institutional costs required of the Postal Service’s competitive products. The Postal Accountability and Enhancement Act (PAEA) created the need for an appropriate share floor. Since the advent of PAEA, the appropriate share has been set by the PRC at 5.5% of institutional costs.

USPS Releases FY2018 Annual Compliance Report As required by the Postal Accountability and Enhancement Act (PAEA), the Postal Service on December 28 filed the FY2018 Annual Compliance Report (ACR) with the PRC. The report will be used by the PRC to determine the extent to which the Postal Services is in compliance with various requirements of PAEA. The ACR includes detailed information on USPS revenues, costs, volumes and service performance. 

American Mail Alliance Releases Statement. The American Mail Alliance has once again united to respond to the President's Task Force on the United States Postal System. The problems plaguing the US postal system require a holistic approach and not a piecemeal effort. We strongly urge the Postal Regulatory Commission to refrain from a premature attempt to cure the Postal Service's manifold ills by granting unneeded and misguided relaxation of the statutorily required CPI price cap.

USPS Reports Fiscal Year 2018 Financial Results.  On November 14, USPS reported their Fiscal Year 2018 financial results.  The Postal Service reported overall volume decline of 3.2 billion pieces and a net loss of $3.9 billion.  In addition, the Postal Service made a call for the need to advance legislative and regulatory reforms, along with continued aggressive postal management actions to generate new revenue and control costs. 

PRC Approves USPS Rate Adjustments. On November 13, the Postal Regulatory Commission issued Orders 4875 and 4876 approving the Postal Service’s planned rate adjustments for both Market Dominant products and Competitive products respectively.  Price changes will go into effect on January 29, 2019.

USPS Announces Price Change. On October 10, the USPS announced price changes effective January 29, 2019. The proposed prices, approved by the Governors of the Postal Service, would raise Mailing Services product prices approximately 2.5 percent. Shipping Services price increases vary by product. The price increase percentages by class are First-Class Mail 2.486, Marketing Mail 2.479, Periodicals 2.520, Package Services 2.522, and Special Services 2.512.