United States Postal Service Aims to Save $3 Billion with Proposed Mail Service Changes

In July, the post office also raised the price of forever stamps and other services.

The United States Postal Service (USPS) has announced a pre-filing virtual conference to discuss significant plans to enhance mail processing and transportation efficiency while saving the federal government money.

The department released a statement on Aug. 22 regarding the proposed changes. The improvements will align with proposed refinements to existing mail and package delivery service standards.

During the virtual conference, USPS will gather public feedback before formally requesting an advisory opinion from the Postal Regulatory Commission (PRC). Postmaster General Louis DeJoy emphasized that the Postal Service aims to integrate its transportation, processing, and delivery networks to improve reliability, reduce costs, and grow its business.

“Despite the many improvements we have made since the release of the Delivering for America plan, our service requirements, facilities infrastructure, business rules and operating practices have continued to reflect a Postal Service designed for three decades ago,” said DeJoy.

“However, since 1997, we’ve seen an 80-percent decline in single-piece First Class Mail volume, the significant expansion of delivery points, the growth in the percentage of mail obtaining discounts through workshare programs, and the growth of our package business. Our 10-year Delivering for America plan is transforming our network to better reflect today’s market demands.”

DeJoy concluded his explanation, “This revamped, integrated network, designed for a more unified, logically sequenced movement of mail and packages, combined with modifications to our service standards, will enable us to operate more efficiently and reliably, grow our business and give us a chance for a viable future.”

Key proposals include transitioning from 3-digit to 5-digit ZIP Code standards, adjusting pick-up and drop-off times between post offices and processing plants, and maintaining current service standards for First-Class Mail while optimizing delivery times for other mail classes. These changes are expected to save the Postal Service approximately $3 billion annually.

In addition to financial benefits, the initiative aims to reduce carbon emissions by decreasing the number of truck trips required. The Post Office would not implement the proposed service standard changes any sooner than 90 days after a request for an advisory opinion is filed with the Commission (which would occur following the pre-filing conference), meaning any implementation of the proposed service standards would not happen until the following calendar year. As such, these proposed changes will not impact Election Mail for the upcoming election or our preparedness for peak season 2024.

For the forthcoming election, the Postal Service will again deploy our long-standing practices to ensure the appropriate handling and timely delivery of Election Mail; therefore, the organization will execute extraordinary measures beyond its normal operations before Election Day throughout the Nation. The USPS will finalize its decision after receiving the PRC’s advisory opinion and considering public feedback from the virtual conference.

In July, the post office also raised the price of forever stamps and other services.