In part due to the scale and scope of the U.S. Mail market as well as differences in regulatory frameworks — such as universal service obligations and price caps — the 2023 price of a standard domestic letter in the U.S. was nearly half the average price in our 31 sampled countries. Stamp prices in…
Retirement-related costs were 11.7 percent of operating expenses in FY 2023, a significant cost for the Postal Service. USPS has higher retirement liabilities than other agencies and must pay these costs through revenue rather than through congressional appropriations. The Postal Service has no control over levers that might decrease costs or generate higher fund balances….
The Postal Accountability and Enhancement Act capped price increases for Market Dominant products (such as First-Class Mail) at the rate of inflation as measured by the Consumer Price Index for All Urban Consumers (CPI-U). The OIG examined the potential impact on USPS’s price authority, revenue, and inflation cost coverage if, since fiscal year (FY) 2011,…
Changing market conditions have created a challenging environment for the Postal Service and other postal and logistics operators, specifically in handling the increasing share of packages in the mail mix. Established operators are also facing increased competition from local and regional players. Operators are at various stages of responding to declining mail revenue by investing…
April 26, 2023 By law, the Postal Service’s retiree assets are invested exclusively in U.S. Treasury securities, which pose little risk and generate low investment returns. If the Postal Service wanted to invest in other assets, congressional action would be required. An OIG analysis found the Postal Service could have had $1.2 trillion in retirement…
The Postal Service weathered enormous challenges since the turn of the new millennium, including the 9/11 and anthrax attacks, the Great Recession, and the COVID-19 pandemic. Declining mail volume accelerated by electronic diversion strained USPS finances, and the agency made substantial investments in its package business. Efforts to restore the Postal Service to financial health…
The Postal Service Reform Act of 2022 (PSRA) is the culmination of more than a decade’s worth of congressional efforts to pass meaningful reform legislation. The PSRA contains financial reforms intended to improve the Postal Service’s financial sustainability, and operational reforms intended to increase efficiency, accountability, and transparency. The PSRA will have both short- and…
The small business segment in the U.S. is growing and has a strong potential to generate more revenue for the Postal Service. Consumer expectations are changing, including demands for faster shipping. For small businesses to compete with larger competitors, they need help with speedy and efficient logistics and fulfillment. Additional services and further outreach to…
