June 17, 2025
Issue 25/04
The leading voice for nonprofits on postal issues for over 45 years.
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The Alliance of Nonprofit Mailers is a 501 (c)(4) nonprofit organization established by nonprofits for nonprofits.
Mail service providers request a delay in July rate increases
Because of the tardiness in the provision of documentation necessary to implement the complex structural changes proposed by the Postal Service, mail service providers have sent an urgent request to the USPS that it delay the implementation of rate hikes from July 13 to September 28, 2025. At press time, USPS had not responded other than to acknowledge receipt of the letter.
Represented by the Association for Postal Commerce – PostCom, the service providers predict that if USPS insists on July 13, major problems will result: “…misdirected mail, operational bottlenecks, postage payment adjustments, and severe service disruptions.”
Here is a copy of their letter:
June 6, 2025
The Honorable Amber McReynolds
Chairwoman, Board of Governors
United States Postal Service
475 L’Enfant Plaza, SW Room 10300
Washington DC 20260-1000
Chair McReynolds,
On Friday May 30, the Postal Regulatory Commission approved the increase in rates authorized by the Governors of the Postal Service that are set to take effect on July 13. While we remain concerned that the size and frequency of rate increases is doing irreparable harm to the Postal Service and the mailing industry, we recognize the Governors authority over setting rates.
However, the rate changes scheduled to take effect in July include several complex structural changes as the Postal Service continues to implement its Delivering for America plan. The elimination of Network Distribution Center (NDC) discounts and Detached Marketing Labels (DML) require significant modifications; well beyond what is required in a typical rate proceeding. While we are committed to the successful implementation of the price change and have been devoting substantial resources to achieve that outcome, we have serious concerns that neither the Postal Service, nor the mailing industry that depends on it, will achieve that result.
Unfortunately, documentation needed for developers to update commercial mailing software is alarmingly late. Under normal circumstances, complete specifications for a July 13 implementation should have been available no later than mid-April. Instead, documentation that is still pending public comment was not provided to software providers until May 1, and is not expected to be finalized until mid-June at the earliest.
Software companies, corporate mail centers, and mail service and logistics providers will therefore be forced to take shortcuts to meet an unrealistic deadline as well as seek exceptions for their clients who will otherwise fail to comply with preparation and entry requirements. Either way, July 13 implementation of the new rates is likely to result in misdirected mail, operational bottlenecks, postage payment adjustments, and severe service disruptions.
In 2022, we communicated concerns to the Governors that planned implementation of dimensional pricing for competitive products did not allow sufficient lead time to ensure proper compliance. In response, the Governors agreed to delay implementation by six months to allow adequate time to prepare.
In this case we believe the possibility of service disruptions is far greater but instead we are only asking that the Governors delay implementation of the proposed rates until September 28. This would allow sufficient time for the Postal Service’s business partners to update their products to ensure an effective transition to the new structure.
We recognize that delaying the implementation of new rates could negatively impact postal revenues but believe the benefit of avoiding severe operational and service impacts will outweigh any revenue losses. We also recognize that the issues raised in this letter are technical in nature and therefore beyond the scope of matters typically presented to the Governors. We would be happy to provide additional information and/or brief the Governors further on this issue if you believe it would be helpful.
Respectfully submitted,
Michael K Plunkett
President & CEO
Association for Postal Commerce
1800 Diagonal Road
Alexandria VA 22314
Cc: Postmaster General Douglas Tulino
USPS Board of Governors
There should be no increase in postage rates in January 2026
We expect that there will be no postal rate increase in January 2026. Between how small the rate authority would be (only about 1%), the new Postal Regulatory Commission (PRC) proposed rule to limit USPS to once a year, and the new Postmaster General, odds are in favor of no January increase.
On the other hand, USPS filed on June 11 its intention to propose in October significant classification changes to First-Class Mail, Marketing Mail, and Periodicals for January 2026 implementation. It remains to be seen whether the agency will go forward with these proposals if the PRC rules in favor of only one rate increase per year.
Also on June 11, the Bureau of Labor Statistics released the May 2025 Consumer Price Index (CPI), which increased by 2.4 percent from May 2024 and grew by 0.2 percent from April 2025 (seasonally adjusted).
https://www.bls.gov/news.release/pdf/cpi.pdf
The PRC CPI price cap authority now stands at 0.585 percent. See the table below for our estimated January 2026 rate authority at the time of a rate filing assuming that the Postal Service files for a January 2026 rate increase.
Governors give DPMG Doug Tulino $200,000 in retention payments
A majority of the five USPS Governors want Deputy Postmaster General Doug Tulino to stay on for a while, at least until the end of this year. You could interpret this as an effort to ensure the continuance of the Delivering for America Plan or to help out the new Postmaster General David Steiner who has little prior postal-related experience besides serving on the FedEx board of directors.
We understand that Mr. Steiner is receiving briefings from postal management in preparation for his July 16 official start as PMG. At the same time, former PMG Louis DeJoy continues to advise postal management.
The USPS revealed the retention agreement in an 8-K filing with the PRC:
On May 29, 2025, at the direction of the Governors of the United States Postal Service, the Postal Service entered into a Retention Agreement with Douglas Tulino, acting Postmaster General and permanent Deputy Postmaster General and Chief Human Resources Officer, providing for certain retention incentives to induce Mr. Tulino to continue in his position of Deputy Postmaster General and
Chief Human Resources Officer once the new Postmaster General assumes his position. Under the Retention Agreement as specified by the Governors, the Postal Service agreed to set Mr. Tulino’s salary at $342,280 effective March 24, 2025, the date he began serving as the acting Postmaster General. Mr.
Tulino will also be entitled to receive a retention payment of One Hundred Thousand Dollars within thirty calendar days of May 29, 2025, and an additional retention payment of One Hundred Thousand Dollars within thirty calendar days of December 31, 2025, as long as he remains employed by the Postal Service as of those dates. The retention payments will be paid into Mr. Tulino’s interest-bearing deferred compensation account to ensure compliance with applicable statutory compensation caps.
USPS cash is down 9.4% from last year
According to the U.S. Department of the Treasury, the United States Postal Service had $15.542 billion in operating cash in the Postal Service Fund on May 31, 2025.
One year prior, on May 31, 2024, USPS had $17.147 billion. Therefore, the Postal Service’s operating cash dropped by $1.61 billion or 9.4% in 12 months.
Both the ongoing operating losses and the heavy spending on capital for new buildings, equipment, and vehicles are contributing to a steady decline in USPS liquidity.
USPS gives notice that it will propose significant changes to mail classifications
As a heads-up to mailers and the regulator, USPS said in a June 11 filing that it plans to propose big changes to First-Class Mail, Marketing Mail, and Periodicals in October for January 2026 implementation concurrent with a rate increase.
The Postal Service said it will propose the following:
- Introduce new zoned pricing for presorted, origin-entered Marketing Mail letters, flats, and parcels in all products except for Every Door Direct Mail— Retail.
- Align Outside-County Periodicals prices with Marketing Mail prices by introducing zoned pricing for origin-entered pieces, eliminating bundle and container prices, and introducing simplified container discounts.
- Eliminate duplicative ADC sortation rates for First-Class Mail, Marketing Mail, and Periodicals and clarify rate table labels by substituting “3- Digit” for “ADC,” “AADC,” and “SCF” and substituting “Mixed” for “Mixed ADC” and “Mixed AADC.”
- Eliminate NDC presort discounts for Marketing Mail Parcels, as the Postal Service has eliminated NDC entry and NDC dropship discounts because it no longer intends to process mail in these facilities.
These proposed changes and new pricing structures carry with them a number of changes to workshare discounts—changing benchmarks for some existing workshare discounts, eliminating other existing workshare discounts, and creating new workshare discounts in their place. Accordingly, the Postal Service is filing with this request a petition to change analytical principles addressing these changes.
Alliance announces two new board members representing longstanding member organizations
The Alliance of Nonprofit Mailers Board of Directors welcomes our new board member representing AARP, Brian Horting. Brian takes the place of Traci Lucien who retired after 40 years with AARP and the Alliance. We wish Traci all the best.
Brian is the Vice President of the Print Center at AARP, leading a production management group dedicated to providing best-in-class print and mail solutions across the organization. With expertise spanning digital print on demand, commercial offset, gravure printing, mail distribution, letter shop operations, fulfillment, and inventory ordering solutions, Brian ensures that all print and mail activities align seamlessly with AARP’s strategic priorities.
Under his leadership, the Print Center optimizes AARP’s print buying power to deliver cost-effective, high-impact solutions. He champions standardized workflow processes that enhance efficiency, precision, and consistency across the organization. Brian also oversees sourcing and vendor management, fostering strong industry partnerships that drive innovation and operational excellence.
The Print Center is responsible for producing AARP’s two flagship publications: AARP The Magazine, the world’s largest circulation magazine, and AARP Bulletin, which delivers critical news and insights to millions of readers. By overseeing the print and mail operations for these influential publications, Brian ensures their timely, high-quality distribution to AARP’s membership base.
With extensive commercial print experience, Brian has successfully managed large-scale production, balancing cost efficiency with quality. He holds a Bachelor of Science in Industrial Technology from Millersville University and completed AARP’s ADEPt Program at Georgetown University’s McDonough School of Business.
An experienced leader committed to continuous improvement; Brian ensures AARP’s print and mail operations serve its members effectively while driving operational excellence.
The Alliance Board also welcomes our new board member representing the Wounded Warrior Project, Michaelle Vargas. Michelle steps in for John Hamre who left WWP for other opportunities after 20 years.
Michelle has been with the Wounded Warrior Project® (WWP) since 2008 and is the Vice President of Resource Development – Direct Response at WWP. She leads the strategy, implementation, and performance monitoring of all Direct Response fundraising teams, including Direct Mail, Monthly Giving, Direct Response Television, Face-to-Face Fundraising, and Digital Fundraising. Michelle holds a bachelor’s degree in business administration from the University of North Florida and an MBA focused on Executive Leadership from Jacksonville University. She is passionate about WWP’s mission and is dedicated to ensuring the sustainability of the organization’s lifetime commitment to warriors and their families. Michelle is personally driven to support heroes and takes pride in her husband and two brothers’ military service.
At Wounded Warrior Project® (WWP), we are changing the way our nation cares for veterans and helping them thrive for a lifetime. Our innovative programs and services inspire the hope and purpose that help prevent veteran suicides. Our programs, advocacy, and awareness efforts help wounded warriors find purpose and thrive in communities across the country. The support of generous donors and corporate partners allows us to provide our programs at no cost to warriors and their families.
We fulfill our mission in three distinct ways:
PROVIDE direct programs and services to warriors and their families.
ADVOCATE for injured service members and their families in Washington, DC.
COLLABORATE with other military and veteran support organizations to amplify our efforts.
We are very excited to have two dynamic nonprofit leaders, Brian and Michelle, join our board to carry on the outstanding contributions of Traci and John!
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