Alliance Report

July 10, 2026

Issue 26/13

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.

OIG Audit Finds USPS Air Transportation Contract Not Aligned with Volume Trends and Network Changes

The USPS Office of Inspector General (USPSOIG) on July 1, 2026, released an audit report, “Effectiveness of Mail Transported by Air,” where it found that despite the Postal Service’s initiatives to improve transportation efficiency and decrease air transportation as part of its Delivering for America (DFA) plan, “its new air cargo contract is not aligned with volume trends and network changes,” and it said the USPS “did not properly forecast declining package volumes or impacts of subsequent network changes when establishing the volume requirements of its new air cargo contract.”

“As a result,” the OIG reported, “the Postal Service made the decision to transport First-Class Mail and Marketing Mail by air to avoid paying premiums.” “While the new contract offers benefits for the Postal Service,” it said, “the volume requirement leaves the Postal Service with little choice but to fly First-Class Mail — even though this contradicts previous decisions to extend delivery standards to allow for surface transport — simply to meet contractual minimums and avoid even higher expenses.” “With the contract’s long duration and the continued difficulty of meeting minimum volumes without relying on First-Class Mail,” the audit concluded, “the Postal Service may want to assess its options moving forward, including whether the current agreement remains the most effective approach.”

The USPS had estimated annual savings from its transportation efficiency initiatives “of about $1.1 billion from surface transportation, and $701 million from air transportation,” the OIG said, noting that “[i]n October 2021, the Postal Service extended First-Class Mail delivery standards to allow more volume to travel by surface and adjusted its primary air cargo contract in September 2024, to align with these initiatives.” “However,” it said, “despite these changes, the Postal Service has increasingly relied on the air network to transport First-Class Mail and Marketing Mail.”

The OIG made “two recommendations to address issues with planning and forecasting and to align the air cargo contract with network changes.” The OIG recommended that “the Vice President, Logistics, develop a plan to improve forecasting for the air network model when determining future contracted volume estimates,” which USPS management agreed with.

The OIG also recommended that “the Chief Logistics Officer and Executive Vice President, in coordination with the Vice President, Logistics, conduct an updated cost-benefit analysis to determine whether terminating the current contract and pursuing a new air cargo contract with a shorter base term with option years would provide the needed flexibility to align contracted air capacity with ongoing volume and network changes.” USPS management “disagreed with the assertion that shifting First-Class Mail to the air has contributed to $200 million in additional costs as well as the need to perform an updated cost-benefit analysis of the Air Cargo Network contract.”

When Will the Next Postage Price Increase be after July?

Those who have been paying attention to all things related to postage prices (and reading their Alliance Reports!) may already realize that the question of when the next Market Dominant postage price change may occur (after the July 2026 increase) is not a straightforward question to answer. There are a few things at play that could affect it.

First, the Postal Regulatory Commission (PRC) issued a ruling that limits the USPS to one significant Market Dominant price change per fiscal year. While the ruling was a welcome one for the mailing industry and nonprofit organizations who fought hard to have it put in place, the USPS appealed the PRC ruling in the courts and to date no decision has been made there (see below article). If the court were to overturn the PRC ruling, conceivably the USPS could go back to more than one price increase per fiscal year.

Also, since the July 2026 change occurs in the USPS’ Fiscal Year 2026…the USPS would be allowed to do another change in FY2027 (which starts 10/1/2026…), so conceivably it could do a January 2027 increase even with the PRC ruling in place. Historically, if the USPS is only doing one price change per year, it prefers a July price change because there is more rate authority available to it under the current rules. The PRC in March typically issues its Annual Compliance Determination (ACD) which verifies the amount of additional rate authority from things like the Density adder. The USPS shortly after files its proposed rate change at the PRC to take advantage for as much time with the additional rate authority as possible. But keep in mind, that is under today’s rules.

The PRC is currently reviewing the USPS rate system and the outcome of that proceeding could certainly impact the timing of the next Market Dominant price increase. For example, under the USPS’ proposed changes submitted to the PRC, it has said it likely would go with a January 2027 price change (with no cap in place and limited pre-implementation PRC review if the USPS proposal were adopted in full).

Under current PRC rules, however, the USPS must give 90 days’ notice on Market Dominant price changes, so if the USPS were planning to file a January 2027 price increase under any scenario, it would have to file the proposed changes at the PRC by October. Since next steps in the PRC’s rate review proceeding are likely to include a set of proposed rules published with another comment period before final rules are published, the timeline is tight for the proceeding to be finished in time.

The bottom line is that while it is most likely the next Market Dominant price change will not occur until July 2027, there is an outside chance the USPS could file the next price change for January 2027.

Court Continues to Hold USPS’ Appeal on PRC Price Change Frequency Ruling in Abeyance

The USPS on February 12, 2026 appealed the Postal Regulatory Commission (PRC) Order No. 9426 in the D.C. Circuit Court for review. PRC Order No. 9426 is the ruling limiting the USPS to one significant price change per Fiscal Year.

The appeal is currently on hold: the PRC and the Postal Service jointly requested that the court hold the petition in abeyance until the PRC completes its current rate system review, or for 90 days, whichever is earlier. The D.C. Circuit directed the parties to file motions to govern further proceedings in the case by June 29, 2026 or within 30 days of the PRC completing Phase 3 of its rulemaking, whichever is earlier.

On June 24, 2026, the court directed the parties to file motions to govern further proceedings in the case with 30 days of completion of the PRC rate review proceeding, or by September 22, 2026, whichever occurs earlier, continuing to hold the appeal in abeyance until that time.

Federal Judge Blocks USPS From Making Election Mail Changes

A federal judge in Washington on July 1, 2026, blocked the USPS “from carrying out changes to its delivery of mail-in ballots, writing that recent policies directed by President Trump ran afoul of legal terms the agency accepted more than four years ago to ensure timely delivery of mail ballots,” the New York Times reported.

“In a brief opinion,” it said, “Judge Emmet G. Sullivan pointed to a settlement agreement reached between the N.A.A.C.P. and the Postal Service in December 2021, after the group sued the government arguing that postal delays threatened to disenfranchise voters.” “At that time,” it reported, “the agency agreed to ‘prioritize monitoring and timely delivery of election mail.’”

Judge Sullivan wrote that the Postal Service’s proposal, “which includes not delivering mail-in ballots in states that decline to hand over voter data to the federal government,” the Times said, “violated the settlement agreement, which the parties had agreed would run through the 2028 election cycle.” Judge Sullivan wrote that the Executive Order appeared “designed to exert federal control over who in the United States may be sent a mail-in or absentee ballot in federal elections by the Postal Service.” He wrote that the agency had previously agreed to outline plans before each national election and meet with the N.A.A.C.P. to explain how it would ensure efficient delivery of election-related mail.

Senators Call for Investigations over USPS Service

So far this week, two separate Senators have called for or launched investigations into Postal Service over service issues.

On July 1, 2026, according to WISPolitics, Senator Tammy Baldwin (D-WI) called for an investigation into the delays at the USPS “during the Wisconsin Spring Election that led to hundreds of Wisconsinites across the state not having their votes counted.” “Baldwin notes that hundreds of Wisconsinites sent their ballots before Election Day, some as early as weeks before the election, but were deprived of their right to vote because of delays by USPS,” the article reported, noting that “[t]wo-thirds of Wisconsin’s local election officials across the state reported problems with the mail during the April 7th election, with some reporting election mail taking 7 to 10 days or more to reach polling locations.”

Baldwin requested that the USPS Office of Inspector General (OIG) “conduct a timely review of Spring Election mail delays in Wisconsin and identify any remaining issues that undermine the on-time delivery of returned ballots so that USPS can resolve any outstanding concerns before Wisconsin’s elections this fall.” In a letter to USPS Inspector General Tammy Hull, Baldwin said, “[i]f the election mail delays that we saw this spring are not addressed, USPS is likely to disenfranchise an even greater number of voters during the fall elections, increasing the risk that eligible voters will cast a ballot that is not ultimately counted through no fault of their own.” “Ensuring timely delivery of election mail is essential to maintaining public confidence in our elections,” she told the USPS, “and delays that prevent ballots from arriving on time undermine voters’ trust that our elections are fair and reliable.”

On June 30, 2026, after reportedly trading letters with Postmaster General David Steiner following a heated exchange during the recent Senate hearing, Senator Josh Hawley (R-MO) “launched an investigation into the ongoing mail service failures plaguing Missouri, alongside potential criminal activity in abandoned mail and the alarming distribution of lavish bonuses to U.S. Postal Service (USPS) executives.” “The investigation follows Senator Hawley’s questions to Postmaster General David Steiner in a Senate Homeland Security Committee hearing last week, where he grilled Steiner on why he accepted a large bonus for himself while Missourians continue to suffer from untimely and undelivered mail,” Hawley’s press release noted.

“The Postmaster General refused, both in the hearing and in subsequent communications,” it said, “to return the bonus.” “Senator Hawley then launched an investigation,” it said, “demanding documents and communications from the USPS to uncover the truth behind these practices and hold those responsible accountable.”

Senator Hawley wrote, “I received your letter dated June 25, 2026, and I am disappointed that your response to our exchange at a recent committee hearing was to shift blame rather than focus on solutions.” “You also failed to address the concerning issue of massive bonuses for Postmasters General and executives at the United States Postal Service (USPS),” he said, noting that “[a]s a member of the Senate Committee on Homeland Security and Governmental Affairs, which has jurisdiction over USPS, and as Chairman of the Senate Judiciary Subcommittee on Crime and Counterterrorism, which has jurisdiction over postal crimes, my office is launching a new congressional investigation into systematic service failures in Missouri, possible criminal activity, and bonuses for executives at USPS.“

Senator Hawley continued by highlighting several instances where the USPS has failed to serve the people of Missouri effectively. The Senator cited examples such as “the mountain of mail found in North St. Louis City in April 2026 and the several audits conducted by the USPS Office of Inspector General (OIG), which showed that millions of pieces of mail were delayed at important service centers in St. Louis and Kansas City.” Senator Hawley concluded, “At the same time, you and your executive team are receiving payouts that make you some of the highest paid federal employees.” “Even a cursory look at public filings reveals millions in non-salary compensation provided to you and your predecessors over the past 10 years,” he wrote, “with other senior leadership raking in hundreds of thousands of dollars in additional compensation per year.” “At the same time,” Hawley wrote, “public reports suggest you have retained restructuring consultants from a top-dollar New York firm, no doubt scouring for costs to cut.” “Your bonus should be an easy place to start,” the Senator told the PMG. “You seem to operate under the misapprehension that you are entitled to some kind of special deference,” he wrote, noting that “[i]n fact, it’s the people of Missouri that are entitled to something: you doing your job.”

Brookings Institute Looks at What American Households Still Use the Mail For

Brookings Institute on July 9, 2026, published a research piece, “Beyond the balance sheet:  What American households still use the mail for.”  Drawing on data from the USPS’ annual Household Diary Study (recently renamed the “Household Mail Survey”), Elena Patel, Senior Fellow, Economic Studies at the Brookings Institute points out that “[n]early every conversation about the future of the U.S. Postal Service (USPS) begins with its balance sheet.”  “In doing so,” she said, “it skips a more basic question: what households still use the mail for, and which of them rely on it most.”

Patel said the data to answer that question already exists. “Each year, USPS commissions a survey of how American households send and receive mail,” she said, noting that “[t]he survey now spans more than four decades, recording what arrives in the mailbox, who receives it, and how both have changed.” “It is a demand-side record that rarely enters a policy debate dominated by the Postal Service’s finances,” Patel said. “A financial assessment of the Postal Service that does not account for this is answering a different, albeit incomplete, question,” she said.

Citing specific data points collected from the survey and how they have changed over the past decades. “Household mail volume has fallen by more than half since 2005,” she observed, “but what remains is not residual.” “The bills still arriving on paper cluster in categories where households have a reason to keep them: financial, medical, utility, and insurance,” she said. “Package delivery via USPS has grown, not fallen,” she reported. “The mailbox has lost the casual transaction; what it has retained serves a function,” Patel stressed.

“The households that still rely most heavily on the network are not distributed randomly,” Patel observed, noting that “[m]ail bill-payment skews sharply toward older households; a strong majority still paid at least one bill by mail in 2025.” “Package delivery grew most where it was lowest a decade ago: rural households went from receiving the fewest USPS packages per year in 2015 to the most by 2025,” she said. “Households visit post office retail locations at more than three times the rate they visit private carrier retail,” she reported, “and the pattern holds for small businesses that rely on the postal network to reach customers.”

Patel observed that these patterns “align with what the universal service obligation was designed to guarantee: delivery to every address, at affordable prices, and with reliable service.” “The heaviest remaining use is concentrated in both the geographies and the mail functions where those commitments carry the most weight: bills households keep for their records and delivery where there is no easy private substitute,” she concluded.

New Jersey Bans the Sale of Sensitive Data, Creates Data Broker Registry

New Jersey Governor Mike Sherrill on July 2, 2026, signed state bill A5328, banning the sale of sensitive data and creating a data broker registry in New Jersey. The law makes New Jersey the seventh state to enact a data broker law, and the second this year following Connecticut.

“This is not a simple copy-paste of any other state,” said IAPP. “The most notable divergence is its breadth,” it said, noting that “[i]t creates requirements not only for data brokers, but also for data collectors, entities that have a direct relationship with individuals but sell their personal data to data brokers.”

The Electronic Privacy Information Center (EPIC) said that “[t]he ban on sale applies to all forms of sensitive data under the New Jersey Data Privacy Act and applies to all entities regardless of the number of consumers whose data the entity possesses.” “The move towards banning the sale of sensitive data is a clear trend among states,” it said, noting that “Maryland, Oregon, Virginia, Connecticut, and now New Jersey have banned the sale of some – or, in Maryland and New Jersey’s cases, all – categories of sensitive information.” “Massachusetts is considering legislation with a similar protection,” EPIC reported. It said that law “also requires data brokers, as well as data collectors who have a direct relationship with consumers but disclose their information to data brokers, to register and pay an annual fee up to $1.5 million dollars depending on the volume of personal data it collects.”

Laws such as this one heavily impact direct marketing by driving up the cost of acquiring targeted marketing lists, or sharing consumer insights for marketing. Any company providing consumer lists for direct marketing must register with the states that have such laws and may face skyrocketing new annual registration fees. In addition, some of the laws completely ban the sale or transfer of “sensitive data elements,” regardless of whether the consumer consents. This may include lists segmented by categories such as financial information, geolocation data, race/ethnicity/religion, mental/physical health conditions or biometric data.

USPS Introduces New LocalXChange Service

The USPS on July 9, 2026, announced the introduction of a new service that it said “gives customers a new way to buy, sell, and swap items locally through USPS Smart Lockers without needing to meet in person.” The new USPS LocalXChange service “gives customers added security, flexibility, and peace of mind, “ the USPS said in its announcement. “Items remain protected until pickup,” it said, “and both buyers and sellers benefit from a self-service experience that helps eliminate the need to coordinate in-person meetups.”

Items using the new service must be packaged in a box or polybag, meet applicable USPS mailing requirements, and fit within the selected Smart Locker compartment. Buyers have 5 calendar days to retrieve the package from the lock before it is moved to the post office retail counter for an additional 10-day pickup window. More information is available at: https://www.usps.com/smart-lockers/local-xchange.htm.

Siviter Earns Certified Association Executive Credential

ASAE has announced that Alliance of Nonprofit Mailers Executive Director Kathleen Siviter has recently earned the Certified Association Executive (CAE®) designation. “The CAE is the highest professional credential in the association industry,” ASAE said, noting that “[t]o be designated as a Certified Association Executive, an applicant must have experience with nonprofit organization management, complete a minimum of 100 hours of specialized professional development, pass a stringent examination in association management, and pledge to uphold a code of ethics.” “To maintain the certification,” it said, “individuals must undertake ongoing professional development and activities in association and nonprofit management.” The CAE Program is accredited by the National Commission for Certifying Agencies (NCCA).

In response to ASAE’s announcement of her accreditation, Siviter said, “it is my honor to receive the CAE designation.” “It took a lot of work, and many nights and weekends to fulfill the qualifications and study for the CAE exam,” she said, “and I could not have accomplished it without the support and encouragement of the Alliance Board of Directors.” “I am happy I am able to bring the learnings gained through this process to my role with the Alliance,” she said.

About ASAE:

ASAE is a membership organization of more than 50,000 association executives and industry partners. Since it was established 105 years ago, its members have and continue to lead, manage, and work in or partner with organizations in more than a dozen association management disciplines, from executive management to finance to technology. With the support of the ASAE Research Foundation, a separate nonprofit entity, ASAE is the premier source of learning, knowledge, and future-oriented research for the association and nonprofit profession and provides resources, education, ideas, and advocacy to enhance the power and performance of the association and nonprofit community. Visit ASAE at Welcome to ASAE — American Society of Association Executives(asaecenter.org)

USPS Executive Retirements & Appointments

The USPS has announced that effective July 11, 2026, James Duffy, Manager, Product Preparation and Payment, will be promoted to the position of Director, Pricing and Classification Service Center (PCSC), the position recently vacated by Janine Egloff, who was promoted to the position of Senior Director, Product Acceptance and Support.

In his new role, James will oversee the management of key classification issues, Periodicals and Nonprofit applications, National Customer Rulings and the customer appeals process. He will report directly to the Executive Director, Product Solutions.

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.

New EU Customs Fees Starting July 1, 2026. Effective July 1, 2026, the European Union (EU) is implementing new duties for certain packages entering countries that follow EU customs rules. For the new duties, customers should expect a flat €3 customs duty per line item (i.e., for each unique 6-digit HS Code on their customs form) for business-to-consumer shipments valued at up to €150 and for consumer-to-consumer shipments valued at over €45 and up to €150. Exact charges may vary depending upon the destination country, and additional country-specific duties, taxes, and fees may apply.

USPS systems (i.e., retail service counters, Click-n-Ship, certain USPS APIs, and Global Shipping Software (GSS)) will capture the estimated costs for many countries during checkout, reflecting the real-time exchange rate between the euro and U.S. dollar. The new EU customs charges are non-refundable and must be paid alongside other applicable customs fees. USPS’s Delivered Duty Paid (DDP) service will be available via certain USPS systems to prepay all estimated duties, taxes, and fees for many EU destination countries. The final list of destinations accepting USPS DDP will be available at https://www.usps.com/international/prepaid-import-duties.htm once finalized. Some countries may require USPS DDP. More information is available at https://postalpro.usps.com/node/15301.

Special 1776 Postmark Available from USPS. The USPS is making available a special 1776 Declaration of Independence pictorial postmark “to celebrate 250 years since the nation’s founding and recognize more than 60 historical Post Offices.” “The postmark uses similar imagery as the Declaration of Independence stamp — with the numerals “1776” rendered in the shape of quill pens but displayed horizontally rather than vertically — and is stamped only with the date July 4, 2026.”

Employees and customers seeking the cancellation must mail their philatelic items, with the Declaration of Independence stamp applied, to USPS Stamp Fulfillment Services, indicating the name of which of the more than 60 Post Offices that were operating in 1776 and are still open today they would like applied to their mailpieces. Requests must be postmarked no later than 30 days after July 4. A July 4, 2026, postmark will be available in person for hand-back service only at the Declaration of Independence stamp first-day-of-issue ceremony at the B. Free Franklin Post Office in Philadelphia. Participating locations are in Connecticut, Delaware, Georgia, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, South Carolina and Virginia. The June 11 issue of Postal Bulletin has more information about the cancellation, and a complete list of Post Offices can be found in the organization’s June 11 news release.

New USPS Website Celebrates USA’s 250^th. The USPS has launched a website showcasing how the organization is celebrating the nation’s 250th anniversary. The site, United States of America: 250th Anniversary, is part of usps.com and includes:
- Commemorative stamps such as Figures of the American Revolutionand American Icons;
- Anniversary items for sale on comand at participating Post Offices;
- The locations of the more than 60 Post Offices that were operating in 1776 and are still open today;
- A link to the “Mail with Mr. ZIP” YouTube seriesfor kids, which launches a special USA 250 episode July 2;
- Facts about the Postal Service’s place in American history; and
- Commemorative items celebrating the Postal Service’s 250th anniversary.

This site is part of the organization’s broader efforts to mark the nation’s 250th anniversary on July 4, along with its yearlong celebration of the Postal Service’s 250th anniversary, which comes to a close at the end of July.

**Alliance August Webinar for members & sponsors only – Register Now!**

Our 3rd webinar for 2026 will be held in August and will be for Alliance nonprofit members and sponsors only. This next webinar will provide updates on regulatory and legislative postal proceedings as well as news from the July meeting of the Mailers Technical Advisory Committee (MTAC).

The webinar will be held on Wednesday, August 5, 2026, from 2-3 EST. Registration is open at https://zoom.us/meeting/register/gSoLn9aqRRW-O9FLKqTEEw.

The Alliance is planning to hold more webinars in 2026, some will be restricted to Alliance members only, others will be open to all. If there are specific topics or speakers your organization is interested in having a webinar on, email me at kathy@nonprofitmailers.org.

Alliance Report, July 10, 2026, 26-13