Save Postal Service with USPS SERVES US Act
By Paul Bobnak | October 29, 2024
If twice-a-year postage increases make it harder for you to plan mail campaigns, the proposed USPS SERVES US Act promises greater predictability.
Introduced in Congress by Rep. Jake LaTurner (R-KS), H.R. 9839 would change current law to make the U.S. Postal Service more accountable to regulators working in the greater public interest.
In this post, I will provide a rundown of some of the provisions in the bill and what they mean for mail.
Postal Reform Background
So, wait, wasn’t the postal service reformed recently?
Yes, Postal Service Reform Act of 2022 made a few changes to USPS. The biggest one ended its employee healthcare pre-funding requirement, which had been a drag on the balance sheet since 2006. It also required the development of a service performance dashboard.
But years of massive price hikes, as well as slowdowns in delivery, are damaging the confidence that mail owners, printers, and consumers have in the postal service’s commitment to traditional mail. Without reliable delivery and predictable pricing, volume will continue to be driven from the system.
Increases in Postal Rates
As an independent executive branch agency, USPS self-funds with revenue from selling stamps and postage, products, and services. Small increases to keep pace with inflation were the norm until 2020.
Stamp prices have climbed 36% since 2019 in a string of six increases, going up from 50 cents to 73 cents
The July 2024 postage hike averaged 7.8%, tied for the highest-ever
Although USPS did not request a postage increase for January 2025, prices are still expected to increase every six months after that through at least 2027
Declines in Delivery Performance
In launching Postmaster General Louis DeJoy’s Delivering for America plan in 2021, USPS reduced service standards for mail delivery. At the same time, it is revamping its entire network of processing centers.
40% of First Class Mail was slowed from a 3-day standard to a 4- or 5-day standard
Congressional attention in recent months has focused on significant delays in the delivery of First Class Mail in Houston, Richmond, and Atlanta
Proposed Changes Included in the USPS SERVES US Act
The proposed bill is officially known as the USPS Services Enhancement and Regulatory Viability Expansion and Sustainability for the U.S. Act. It empowers the Postal Regulatory Commission (PRC) with a specific mandate to keep the USPS accountable for service and efficiency improvements.
Provisions in the USPS SERVES US Act include:
Postage rate increases limited to 1 per year
PRC is barred from creating a rate system with no price cap
Requires the PRC set a volume-encouraging objective for evaluating rate increases
Underwater surcharges are capped when service performance and cost efficiency are not maintained for the relevant products
PRC must develop an independent, non-USPS volume estimation model
It streamlines the PRC’s complaint consideration process and empowers it to reduce rates for affected authorities if it finds a rate is unlawful
USPS’s rate authority is reduced if it fails to meet established service targets
With the additional oversight powers and statutory authorities, the PRC can reestablish full confidence in the postal system and modernization efforts by printers and mailers.
How to Take Action on the USPS SERVES US Act
Printing and postal industry groups are becoming more aware of the need to pass legislation to make USPS leadership more accountable and modernize its regulatory checks and balances. Passage of the bill is unlikely when Congress returns for a post-election session. But now is a good time to find out more about its provisions, and be ready to advocate for action in the next session.
Here is the full text of the USPS SERVES US Act
The PRINTING United Alliance supports H.R. 9839 as well as encourages its member companies to contact their local member of Congress on these reforms
Keep US Posted has an online petition that can be directed to your member of the U.S. House of Representatives: https://mobilize4change.org/l6Dd6J4
Wrapping it up
At mailing.com, we’ve had a long-time partnership with USPS. With in-house USPS staff and our track-and-trace solution, you can always ensure that your mail will meet service standards and be delivered to your prospects and customers as soon as possible. We have 60 years of expertise as a trusted high-volume printing and mailing company.
And we are committed to helping you achieve the best possible cost reductions and efficiencies for your direct mail campaigns. From planning to printing and mailing, we will work with you to reset your direct mail campaigns and save money every step of the way.
Please reach out to us! We’d love to show you how you can put today’s direct mail to work in your next campaign.
