Latest News and Highlights

Senate Confirms Postal Governors - On May 12, the Senate confirmed Daniel Mark Tangherlini, the former head of the General Services Administration, and Derek Kan, the former Deputy Director of the Office of Management and Budget to be Governors of the United States Postal Service.  Their terms expire December 8, 2027 and December 8, 2028 respectively.

U.S. Postal Service Files Price and Classification Changes for Competitive Products and International Special Services - On May 6th, the U.S. Postal Service filed notice with the Postal Regulatory Commission (PRC) of price and classification changes for Competitive Products, including new prices for certain International Special Services and product enhancements for Priority Mail and Parcel Select. The proposed price and classification changes, approved by the Postal Service Governors, would take effect July 10, 2022.  Additional changes extend cubic rates to Priority Commercial Base and introduce cubic rates for Parcel Select Ground packages up to 1 cubic foot. The filing also requested product enhancements for Priority Mail Outbound and Priority Mail Returns.  

U.S. Postal Service Reports Second Quarter Fiscal Year 2022 Results On May 5, the U.S. Postal Service announced its financial results for the second quarter of its fiscal year 2022 (Jan. 1, 2022 - March 31, 2022), reporting an adjusted loss of approximately $1.7 billion for the quarter, essentially flat compared to the same quarter last year. Adjusted loss excludes non-cash workers' compensation adjustments for the impacts of actuarial revaluation and discount rate changes, which are outside of management's control. Service performance continued to improve during the second quarter. The Postal Service's operating revenue was approximately $19.8 billion for the quarter, an increase of $896 million, or 4.7 percent, on volume growth of 886 million pieces, or 2.9 percent, compared to the same quarter last year.

USPS Implements New First-Class Package Service Standards and Updates Priority Mail Service Standards On May 1, the Postal Service is taking additional actions to improve service reliability by announcing the implementation of changes to the First-Class Package Service (FCPS) service standards. Modifying these service standards will allow for additional transport time for long-distance package deliveries and increased network efficiencies. The new FCPS service standards will also enable additional package volume to be transported by surface transportation, which is more reliable and affordable compared to air transportation. Sixty-four percent of First-Class Package Service volume will be unaffected by the proposed standard changes. Four percent will be upgraded from a 3-day to 2-day service standard. For the remainder of the volume (32 percent), the service standard will increase by one or two days.

Postal Reform Act Signed Into Law.  On April 6,  President Biden signed the Postal Reform Act of 2022, which enacts the most significant postal legislation since the Postal Accountability and Enhancement Act (PAEA) in 2006. The law change will eliminate the requirement that the Postal Service prefund retiree health benefits, and require USPS annuitants to enroll in Medicare when eligible. The law also allows USPS to offer a limited set of non-postal services and requires an integrated network with delivery to all addresses six days per week. 

USPS Announces New Prices for 2022 On April 6, the United States Postal Service filed notice with the Postal Regulatory Commission (PRC) of price changes to take effect July 10, 2022. The new prices, if favorably reviewed, include a two-cent increase in the price of a First-Class Mail Forever stamp from 58 cents to 60 cents and would raise First-Class Mail prices approximately 6.5 percent. The single-piece letter additional ounce price would increase to 24 cents, the metered mail 1-ounce price would increase to 57 cents and the price of a postcard stamp would increase to 44 cents. A one-ounce letter mailed to other countries would increase to $1.40 cents. The Postal Service is also seeking price adjustments for Special Services products including Certified Mail, Post Office Box rental fees, Money Order fees and the cost to purchase insurance when mailing an item.

PRC Issues FY 2021 Annual Compliance Determination.  On March 29, the Postal Regulatory Commission (PRC) issued its FY 2021 Annual Compliance Determination (ACD).  As part of its report, the PRC has formally determined the available rate authority available to the Postal Service in addition to the CPI based authority. As determined by the PRC, the density based authority available is 0.583% and the retirement based authority available is 0.785%.

USPS Releases First Quarter Fiscal Year 2022 Results On February 8, 2022 the United States Postal Service announced its financial results for the first quarter 2022 - October 1, 2021 to December 31, 2021. The USPS reported an adjusted loss of approximately $1.3 billion for the quarter, compared to an adjusted loss of $288 million for the same quarter last year. The Postal Service's operating revenue was approximately $21.3 billion for the quarter, a decrease of $202 million, or 0.9 percent, on volume decline of approximately 1.5 billion pieces, or 4.1 percent, compared to the same quarter last year. Revenue declined at a slower rate than volume due to price increases implemented during calendar year 2021. The Postal Service had a net loss of approximately $1.5 billion for the quarter, compared to net income of $318 million for the same quarter last year. The increases in both net loss and adjusted loss were partially driven by inflationary impacts to operating expenses, including rising prices associated with energy and fuel expenses. Service performance continued to improve during the quarter and remained strong through the volume surge associated with the holiday season.

Postal Regulatory Commission Releases Fiscal Year 2021 Annual Report to the President and Congress On January 25, the Postal Regulatory Commission submitted its FY 2021 Annual Report to the President and Congress.  The activities and accomplishments highlighted in the Commission’s Annual Report to the President and Congress demonstrate the agency’s efficient use of limited resources to achieve its mission of ensuring transparency and accountability of Postal Service operations, as well as fostering a vital and efficient universal mail system. Notably, the Commission issued final rules adopting changes to the regulations governing the system for regulating rates and classes for Market Dominant products. This rulemaking was the Commission’s top priority in FY 2021 and one of its Strategic Objectives.

USPS Reports 2021 Fiscal Year Finances  On November 10, the U.S. Postal Service announced its financial results for the 2021 fiscal year ended September 30, reporting an adjusted loss of $6.9 billion for 2021, compared to an adjusted loss of $7.6 billion for 2020. The Postal Service had a net loss of $4.9 billion for 2021, compared to a net loss of $9.2 billion for 2020. The Postal Service's operating revenue was $77.0 billion for 2021, an increase of $3.9 billion, or 5.3 percent, compared to the prior year.