Alliance Report

May 8, 2026

Issue 26/7

The leading voice of nonprofits on postal issues for over 45 years.

The Alliance of Nonprofit Mailers is a 501 (c)(4) nonprofit organization established by nonprofits for nonprofits.

Postmaster General Attends First National Postal Forum

Postmaster General David Steiner, who has been in the role just short of one year, can now add another rite of passage that every Postmaster General since 1968 has enjoyed – being the keynote speaker at the National Postal Forum.

Steiner presented opening remarks at last week’s NPF held in Phoenix, AZ, to a crowd of over 5,000 postal and industry attendees. His keynote message was one of optimism, customer-focused as he told attendees this is “your” Postal Service. “The keynote also underscored the Postal Service’s 250-year legacy of supporting American commerce and communities and its continued role as both a national institution and an economic platform,” the USPS reported.

“The Postal Service you rely on is not standing still,” Steiner said. “Because the pace of change in commerce today is faster than ever, we do not get to choose whether the market changes. We only choose whether we are ready and whether we are agile enough to meet it.” “Framing the theme of the session as ‘Your United States Postal Service,’ Steiner emphasized the close link between Postal Service performance and customer success.” “Our legacy is your legacy. Our performance drives your success. Our network supports your business. When the Postal Service improves, your business improves,” he said.

The USPS noted that the keynote also “highlighted the broader role USPS plays in the economy — specifically at the center of the $1.9 trillion mailing and shipping industry, which supports 7.9 million jobs.” “The Postal Service is not just a public institution with a proud history,” Steiner said. “It is also an economic platform — one that has enabled American commerce for generations, and one that still matters deeply to our country’s future.”

The Alliance was busy at the NPF, with two educational sessions that were well attended and an exhibit booth in the industry pavilion which saw steady traffic and interest in learning more about the Alliance.

USPS Board of Governors May 8 Meeting Highlights

The USPS Board of Governors held a public meeting on May 8, 2026, with the following highlights.

Fiscal Year 2026 Quarter 2 Financial Results. The USPS presented its financial results for Quarter 2 of its Fiscal Year 2026 (Jan. 1, 2026 through March 31, 2026). Controllable losses decreased by $206 million compared to the same quarter last year, net loss decreased $1.3 billion compared to the same quarter last year, operating revenue was $20.2 billion, a 2.3 percent increase compared to same quarter last year, but volumes were down for all products compared to the same quarter last year.

“Net loss for the quarter under generally accepted accounting principles (GAAP) totaled $2.0 billion,” the USPS reported, “compared to $3.3 billion for the same quarter last year.” “This $1.3 billion decrease is attributed to an operating revenue increase of $463 million and a decrease in workers’ compensation expense of $1.3 billion, partially offset by an increase in retiree health benefits expense of $175 million and higher other operating expenses of $72 million,” it said.

“During the quarter we were able to get revenue, cost and service results moving in the right direction,” said Postmaster General David Steiner. “However, the scale of our financial improvements compared to the prior year was modest and we have a long road to go to achieve anything close to long-term financial sustainability. It is a simple fact that we are in a cash crisis, and we are now taking serious and appropriate steps to conserve funds to operate. To avoid disruption and to sustain our role supporting American commerce and the public, we require urgent Congressional action to expand our borrowing authority and to address outdated constraints on the organization.”

The USPS noted that in April 2026, the Postal Regulatory Commission (PRC) granted it a temporary conditional waiver “that lifts regulatory restrictions that required the Postal Service to use cash generated through the retirement-based rate authority only to make a minimum remittance payment towards our pension amortization obligations.” The USPS said it “will determine whether to exercise the authority provided by the Temporary Conditional Waiver later this year.” “PRC rules, therefore, allow this cash to be used on expenditures for operating expenses and capital investments, if we meet the conditions of the waiver,” it said.

“While the waiver is appreciated, the Postal Service continues to urge the PRC to prioritize its long-term financial sustainability, as required by law, and act on its previous petition for certain regulatory changes, including: modification of the Market Dominant ratemaking system through the elimination of the price cap and adoption of a regulatory monitoring ratemaking system in order to help achieve a sustainable path,” the USPS said. “Alternatively,” it said, “if the price cap is maintained, the PRC should allow a re-baselining of rates to ensure they are compensable while also maintaining adjustment factors that ensure the system is flexible enough to deal with external circumstances that may arise.”

The USPS noted that in addition to the temporary regulatory relief, it “suspended its portion of payments to the Office of Personnel Management for the bi-weekly normal cost contributions for employees covered under FERS effective April 10, 2026, enabling it to address its immediate liquidity issue by conserving approximately $200 million in cash each pay period and approximately $2.5 billion for the remainder of fiscal year 2026.”

The USPS total operating revenue for the quarter was $20.2 billion, an increase of $463 million, or 2.3 percent, compared to the same quarter last year. “The increase was largely due to price increases in the Shipping and Packages, Marketing Mail, and First-Class Mail categories, partially offset by declining volumes for these same categories,” it noted. The USPS reported,

“Shipping and Packages revenue increased $348 million, or 4.5 percent, on a volume decline of 22 million pieces, or 1.4 percent, compared to the same quarter last year. Marketing Mail revenue increased $210 million, or 5.7 percent, on a volume decline of 113 million pieces, or 0.9 percent, compared to the same quarter last year. First-Class Mail revenue deceased $31 million, or 0.5 percent, on a volume decline of 691 million pieces, or 6.3 percent, compared to the same quarter last year.”

Total operating expenses decreased $949 million, or 4.1 percent, to $22.1 billion for the quarter, compared to the same quarter last year. “The overall decrease in operating expenses was primarily due to the impact of discount rates on workers’ compensation costs and the actuarial revaluation of existing workers’ compensation cases,” the USPS reported, “partially offset by increases in retiree health benefits costs and other operating costs.” “Compensation and benefits, the largest expense component, was relatively flat compared to the same quarter last year as was transportation expense,” it said.

“The financial results for the quarter showed slight improvement compared to the same quarter last year, as we continued to grow revenue and aggressively manage the costs under our control, where possible, which kept two of our largest expense components, compensation and benefits and transportation, relatively flat,” said Chief Financial Officer Luke Grossmann. “However, management actions alone are not enough to solve our financial predicament. We remain confident that we can create a financially sustainable Postal Service through a combination of management actions and legislative, regulatory, and administrative reform.”

At the end of Q2, the Postal Service had $12 billion in liquidity, down from $13.9 billion as of the end of FY 2025.

Service Performance. Greg White, recently appointed as new USPS Vice President, Network Solutions & Performance Excellence, gave the quarter 2 report on service performance, introducing for the first time a set of “unadjusted” service performance scores along with scores adjusted to reflect “Force Majeure” for impacts on service performance beyond the USPS’ control, such as major storms, air space closures and other disruptions.

For Quarter 2 FY2026, the unadjusted service performance for First-Class Mail with overnight service standards was 91.26 compared to 92.65 for the same period last year, and 92.67 when adjusted for Force Majeure. First-Class Mail with 2-day service standards scored 86.96 unadjusted compared to 85.17 for the same period last year and 89.22 adjusted for Force Majeure. First-Class Mail with 3-5 day service standards scored 87.03 unadjusted compared to 80.96 for the same period last year and 89.24 adjusted for Force Majeure.

Service performance for Marketing Mail, which White noted is not adjusted as much for Force Majeure because the majority of Marketing Mail is entered closer to destination, was 92.61 for all Marketing Mail combined in Quarter 2, compared to 91.89 for the same period last year and 93.72 adjusted for Force Majeure.

The next open meeting of the Board of Governors will be held in August 2026.

NAPS Interviews Patel on Importance of USPS to Rural Communities and Potential USO Appropriation

Bob Levi, Director of Legislative and Political Affairs, National Association of Postal Supervisors (NAPS) interviews Elena Patel, Co-Director of the Urban-Brookings Tax Policy Center and Senior Fellow at the Brookings Institute. Discussions “the extraordinary economic impact the Postal Service has on rural and postal-reliant communities, as well as the importance of the agency’s universal service obligation to the entire country;” “the difficulty the Postal Service has in effectively meeting this obligation in light of its current financial pressures, and potential fixes.” Dr. Patel has recently authored two scholarly papers on the Postal Service.

https://naps.org/files/galleries/E242Patel.mp3.

Alliance Welcomes New Member The Dollywood Foundation

The Alliance is proud to welcome our newest member, The Dollywood Foundation, who have provided the below information about their nonprofit organization.

“The Dollywood Foundation, home of Dolly Parton’s Imagination Library, is proud to become a member of the Alliance of Nonprofit Mailers. What began with a simple but powerful idea in 1995, when Dolly wanted to make sure the children in her home county of Sevier County, Tennessee, had books of their own. What started as a small local effort has grown into a beloved early childhood literacy program reaching families through a network of more than 3,000 local program partners across the United States and beyond. As of May 2026, more than 3.5 million children from birth to age five receive a high-quality, age-appropriate book in the mail each month at no cost to their families, helping create joyful routines, build home libraries, and inspire a lifelong love of reading.

One of the most special parts of the Imagination Library is the excitement each book brings. For many children, these books may be the first piece of mail they ever receive with their own name on it, and families tell us how much that moment means. Month after month, children look forward to their book arriving by the United States Postal Service (USPS), and that simple act of opening the mailbox becomes something joyful, personal, and lasting. We are proud to join the Alliance of Nonprofit Mailers to help protect affordable, reliable access to the USPS so that these meaningful moments can continue to reach children and families in communities across the country.”

Postal Alert and Weather Preparedness Act Introduced in the House

Rep. Hillary Scholten (D-MI) on April 23, 2026 introduced a bill in the House of Representatives, H.R.8491, the Postal Alert and Weather Preparedness Act. The bill directs the USPS to conduct a study on the feasibility of sending customers electronic messages using its Informed Delivery program on weather and mail delivery, such as delays in delivery due to weather or natural disasters, instances of closed post offices or those operating with limited hours as a result of weather or natural disasters, and other such events. The bill was referred to the House Committee on Oversight and Government Reform for review.

USPS Executive Retirements & Appointments

The USPS announced on April 28, 2026, that Fiona Machado will be acting in the position of Vice President, Pricing & Costing – the position formerly held by Sharon Owens, who retired at the end of April. Fiona has worked in the USPS pricing and costing group since 2013 and has worked closely with Sharon Owens over the past few years.

The USPS announced on April 30, 2026, the appointment of Matt Connelley as Chief Solutions & Strategy Officer. “Matt has been in the transportation and supply chain industry for forty years, including a 32- year career at United Parcel Service (UPS) where he developed the network strategy and design for the US transportation network,” the USPS said.

The USPS also announced on April 30, 2026, the appointment of Greg White as Vice President of Network Solutions and Performance Excellence, reporting to Matt Connelley (above).

The USPS on May 1, 2026, announced the retirement of Robert Raines, Vice President and Managing Director, International Business, effective May 29, 2026. The USPS on May 2, 2026, announced the Himesh Patel will be stepping into the role. Patel currently serves as Director of International Strategy & Business Development Support.

Into the Postal Weeds…

For those who live in the “postal weeds,” and are looking for news on mail entry, preparation, discounts, incentives, and more, this column in the Alliance Report will be right up your alley! We won’t go all the way into the weeds…but we will offer up highlights on useful resources and mailing standard changes.

July 2026 Price Change Release Notes Published. The USPS on April 28. 2026, published the release notes for the July 2026 price change.

Parcel Dimension Compliance. The USPS in the April 16, 2026 issue of the Postal Bulletin published an article outlining its phased approach and rules concerning compliance with parcel dimension requirements.

Viewing Mail Growth Incentive (MGI) Balances and Postage Statements. The USPS has published information on how My Products Portal customers can view their Mail Growth Incentive balances and postage statements associated with their account.

Package Barcode & SSF Requirements for Business Mail Entry Unit (BMEU) Parcel Mailings. The USPS posted an announcement reminding customers that effective June 1, 2026, package mailings submitted at USPS BMEUs not meeting the IMpb/IMmb and SSF requirements will not be accepted.

Alliance Report 26-07, May 8, 2026