Postal Reform: What’s in It for the Mailer?

Postal Reform Act of 2022 has been signed into law. Postal Reform has been a continuing topic since the last major changes in 2006. This time, the USPS trimmed down its wish list, and the result was very focused legislation that addressed some key needs of the USPS.

Key Provisions:

  • The bill will restructure the investment USPS makes in retired employee health plans and add Medicare requirement
    reversing requirements Congress put into place in 2006 (unique requirement for USPS to pre-fund retiree health benefits)
  • Mandates the USPS deliver mail six days a week (previously mandated only in Congressional Appropriations bills)
  • Establishes an online dashboard with weekly updates on the on-time delivery rate for everywhere in the U.S.
  • Allows the USPS to work with state and local governments to provide non postal services to Americans
  • Reduced mailing fees for rural newspapers

What it means for the Mailer?

  • 6-day week delivery is locked in, no more worries the USPS will change to a 3-day a week rural delivery as proposed in previous reform bills
  • The proposed July price increase is slightly lower than expected, a result, in part, of debt service savings
  • The USPS has greater flexibility to invest in infrastructure – which should result in more consistent delivery and more services