Alliance Report

August 21, 2026

Issue 26/16

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.

PRC Denies USPS’ Waiver Request That Would Have Enabled a January 2027 Price Change

The Postal Regulatory Commission (PRC) on August 21, 2026, denied the USPS’ request for a waiver to the method for calculating the Density additional rate authority. If the USPS’ request had been approved by the PRC, it would have enabled the USPS to increase Market Dominant prices in January 2027. The Alliance and others submitted comments to the PRC opposing the USPS’ waiver request.

The PRC in its decision said it “recognizes the Postal Service’s challenging financial situation,” and noted that the PRC “responded to those challenges by recently granting, of its own accord, a conditional waiver of its rules regarding retirement rate authority, freeing up nearly $2.4 billion of additional liquidity this year and up to $15 billion over the next 5 years.” “In addition,” the PRC said, “the Postal Service itself made a decision to halt some current employee retirement payments generating another $2.5 billion in operating cash during FY 2026.”

“Ultimately,” the PRC concluded, “the Postal Service’s motion fails to meet the relevant legal standards for a waiver, uses a novel methodology that has not had the time to be fully vetted by the Commission or the public, and creates a situation where the risk of overestimating rate authority is a financial burden on households and businesses.” “If the Postal Service determines to continue to pursue a change in methodology for calculating density rate authority, it may do so by filing a petition for a rulemaking proceeding that will allow a more fulsome review of the proposed methodological changes,” the PRC noted.

Updated Price Change Forecast

On August 12, 2026, the Bureau of Labor Statistics released the July 2026 CPI, which increased by 3.4 percent from July 2025 and increased by 0.1 percent from June 2026 (seasonally adjusted). The USPS’ CPI price cap authority now stands at 1.509 percent.

See table below for the estimated rate authorities for a July 2027 price increase under the existing Market Dominant ratemaking system.

Given the substantial volatility in energy costs, these estimates are subject to heightened uncertainty and may change.

USPS Quarter 3 FY2026 Financial Results

As noted in our last issue of the Alliance Report, the USPS has reported out its Quarter 3 FY2026 financial results. The below charts provide highlights.

The USPS Year-to-Date (YTD) net income (excluding non-cash workers’ compensation) was $746 million behind its Plan and $526 million behind the Same Period Last Year (SPLY). Its unrestricted liquidity was $9.4 billion.

Looking at mail volumes, total volume was down 4.3% for the year-to-date and revenue from mail was up 2.4% due to price increases.

In a bright spot, volume and revenue from Marketing Mail was up for the month of June 2026, likely due to the upcoming primary elections.

Federal Judge Blocks USPS from Implementing Part of Mail-In Voting Executive Order

A federal judge on August 11, 2026, blocked the U.S. Postal Service ‌”from implementing part of President Trump’s executive order that aims to tighten rules for mail-in voting ahead of November elections that will decide control of Congress,” Reuters reported. “The ruling by U.S. District Judge Indira Talwani in Boston marked the latest setback for Trump’s push to expand the federal government’s role in overseeing elections,” it said.

The article noted that the Administration “has asked the U.S. Supreme Court to put Talwani’s earlier decision on hold, arguing the states’ case was premature as agencies had not yet finalized plans to implement Trump’s order.” The Supreme Court has not yet ruled. “In a similar case brought by the Democratic Party in ⁠Washington, D.C. federal court, a judge in May declined to immediately block the executive order,” the article noted, “finding it would be premature to do so because the USPS had not yet issued its rule.” “An appeals court affirmed that decision,” it reported.

NPF 2027: Rising Together

The National Postal Forum (NPF) has introduced its theme for its 2027 conference, “Rising Together: Illuminating the Future of Mailing and Shipping.” “Inspired by the optimism of a new day,” the NPF said, “the NPF 2027 celebrates the ideas, partnerships and shared expertise that move the mailing and shipping community forward.” The event will be held May 16-19, 2027, in Orlando FL. More information and the NPF call for session submissions will be coming soon!

Alliance Report, August 21, 2026, 16/26