Alliance Report
November 14, 2025
Issue 25/10
The leading voice of nonprofits on postal issues for over 45 years.
Copyright 2025: Alliance of Nonprofit Mailers—All rights reserved.
The Alliance of Nonprofit Mailers is a 501 (c)(4) nonprofit organization established by nonprofits for nonprofits.
USPS Reports FY2025 Finances; FY2026 Financial Plan
The USPS at the November 14, 2025, meeting of its Board of Governors, reported its Fiscal Year 2025 financial results, as well as highlights from its FY2026 Integrated Financial Plan (IFP).
In FY 2025, the Postal Service’s net loss (according to GAAP) was $9 billion, down from $9.5 billion in FY 2024. Excluding non-cash workers’ compensation adjustments (which can vary significantly based upon changes in interest rates), the FY 2025 loss was $8.0 billion, up from $7.4 billion FY 2024. The Postal Service’s press release on its year-end financial results can be found at https://about.usps.com/newsroom/national-releases/2025/1114-usps-reports-fiscal-year-2025-results.htm.
The USPS reported that First-Class Mail revenue for FY2025 was up 1.5 percent compared to FY2024 but volume was down 5.0 percent. Marketing Mail revenue was up 2.3 percent over FY2024 but volume was down 1.3 percent. Shipping and packages revenue was up one percent ($315 million) compared to FY2025 but volume was down 5.7 percent.
The Postal Service projects an $8.1 billion GAAP loss in FY 2026. The main reason for the projected reduction in net loss (GAAP) from FY 2025 is also related to non-cash workers’ compensation adjustments. Excluding changes in that area, USPS is projecting a slightly larger loss (approximately $100 million) in FY 2026 than in FY 2025. In its Integrated Financial Plan (IFP) for FY2026, the USPS projects an increase of $2.4b in revenue, an increase of $1.5 billion in controllable expenses, another 12 million workhours reduction, and $3.2 billion in facilities cap investment. We will report more on the IFP once it has been published by the USPS.
Postmaster General David Steiner at the Board meeting said the USPS needs to focus more on its greatest assets – first and last mile strengths. He again said the USPS can’t cost-cut its way to profitability but stressed the need to grow volume and revenue. He said he doesn’t need to re-assess the current processing and distribution plans and that the USPS is ready for its peak season. Steiner said the USPS is experiencing some air disruptions in this first quarter which could impact First-Class Mail service performance, but is working on mitigation plans.
In other news from the USPS’ Board of Governors meeting, Chair Amber McReynolds and Vice Chair Derek Kan both were re-elected to their positions by the Board.
USPS Recommends Competitive Services Price Changes Effective January 18, 2026
The USPS today filed notice with the Postal Regulatory Commission (PRC) of recommended price changes for its Competitive Services products, to take effect January 18, 2026. “The change would raise prices approximately 6.6 percent for Priority Mail service, 5.1 percent for Priority Mail Express service, 7.8 percent for USPS Ground Advantage and 6.0 percent for Parcel Select,” the USPS said. It noted that while Mailing Services (Market Dominant) price increases are based on the consumer price index, Shipping Services (Competitive Services) prices “are primarily adjusted according to market conditions.”
Updated USPS Market Dominant Price Change Forecast
After the latest CPI data was released for September 2025, SLS Consulting, prepared the updated below forecast for the amount of price authority the USPS will have for a July 2026 price change. [Note that due to the government shut down, CPI data for October has not yet been released.]
For most Market Dominant mail categories, the increase would range between 4.7% and 5.5%, according to this estimate, except for those categories not covering their costs, where the increase reflects an additional 2%, totaling 6.7% to 7.5%.
Congressional Postal Caucus Calls for Reassessment of USPS Reform Plans
The bipartisan Congressional Postal Caucus has sent a letter to Postmaster General David Steiner calling for reassessment of previous reform plans. In the letter, the Caucus called on the PMG to temporarily halt any further implementation of the Delivering for America plan (DFA) until “it can be reworked to ensure no customers experience slower delivery as a result.”
“As former Postmaster General Louis DeJoy worked to implement his ‘Delivering for America’ (DFA) plan,” the Caucus wrote, “we unfortunately saw steady declines in on-time delivery performance across the country.” It continued,
“In the second quarter of Fiscal Year 2025 (FY25), the Postal Service’s on-time delivery for three-to five-day delivery fell to just 66.8 percent nationally, with some regions as low as 45 percent. This falls well short of the Postal Service’s current on-time delivery goal of 80 percent – and even further below its previous target of 90.3 percent, which remained in place until the former Postmaster General lowered the FY25 benchmark last year. This drastic decline in on-time delivery means our constituents are not receiving essential items, like paychecks, bills, food, and even medicine, in a timely manner.”
The Caucus letter also touched on the USPS’ Regional Transportation Optimization (RTO) plan, which it said would “create additional delays for outgoing mail from predominantly rural areas.” The group asked the PMG to also pause that plan.
Postmaster General Messages Employees
Postmaster General David Steiner has recorded two messages for USPS employees (and stakeholders). The first was recorded shortly after the new PMG took office and was published in the USPS’ Eagle Magazine. The second, and more recent, article was published last week on the USPS’ Link employee news website.
In his most recent messaging, the Postmaster General emphasizes to employees the need for the Delivery, Processing and Logistics groups at USPS to work together in collaboration. “We can’t think of ourselves as independent silos,” he stressed. He also told employees that “[b]y any standard, our financial situation is very precarious.” “No organization, even the Postal Service,” he said, “can lose billions every year without consequence.” The PMG said that over the coming year, the USPS will act with urgency to get on a financially sustainable path. He also emphasized the need for growth, saying the USPS can’t cost-cut its way to profitability.
Steiner closed his message to USPS employees by talking about the need to focus on service performance, particularly during the holiday peak season.
Bound Printed Matter (BPM) Court Case on Hold
The U.S. Court of Appeals case concerning Bound Printed Matter (BPM) has been put on hold to allow the USPS and Postal Regulatory Commission (PRC) to discuss whether to engage in mediation. The USPS had filed the petition in response to the PRC’s denial of its request to eliminate Bound Printed Matter.
Supreme Court to Decide if Mailed Ballots Must Arrive by Election Day
The Supreme Court agreed last week to take up whether states can accept mail-in ballots received after polls close if they are sent by Election Day. The case stems from Mississippi’s attempt to overturn a lower court ruling. Sixteen states count those late-arriving ballots, according to the National Conference of State Legislatures. “Oral arguments are likely next year, with a decision expected by the summer that could dictate whether the practice can be used anywhere ahead of the 2026 midterm elections,” reported The Hill.
https://thehill.com/regulation/court-battles/5598304-supreme-court-mail-in-ballots/
New APWU Leadership
Mark Dimondstein, long-time President of the American Postal Workers Union (APWU) has announced his retirement. Dimondstein is succeeded by Jonathan Smith, from the New York Metro Area. The APWU is one of the largest USPS’ employee labor organizations, representing more than 200,000 USPS employees and retirees, largely in the clerk and maintenance divisions, and 2000 private sector mail workers.
National Postal Forum Introduces Year-Round Learning
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- 9, 2025: USPS Promotions Explained—Discounts. Engagement. Impact.
- 20, 2026: Introduction to Addressing—The Foundation for Accurate, Efficient Mail Processing
More information and registration can be found at https://www.npf.org/delivered.
The Alliance Welcomes New Sponsors!
The Alliance of Nonprofit Mailers is delighted to welcome two new sponsors:
- Jetson Marketing Solutions (Silver Sponsor) https://www.jetsonmarketingsolutions.com/
- Kessler Creative (Bronze Sponsor) https://kesslercreative.com/
We greatly appreciate their support of the Alliance!
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 new 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 going forward.
- New USPS guidelines on viewing Mail Growth Incentive credit balances and postage statements available: https://postalpro.usps.com/growth-incentive-viewing-balance-and-postage-statement
- The USPS has published a series of directories with information on its Service Standards: https://postalpro.usps.com/operations/service-standards
- Did you know the USPS has a published list of Frequently Asked Questions (FAQs) on USPS Nonprofit Authorization? https://postalpro.usps.com/node/13306
What is the USPS Postal Customer Council (PCC)?
The Postal Customer Council (PCC) is a local grassroots organization that serves as a vital link between the U.S. Postal Service and the mailing and shipping communities. Founded on the principles of collaboration, education, communication, and enhancing mail as a marketing tool, each PCC contributes to fostering meaningful relationships between the Postal Service and the businesses that rely on it for their mailing and shipping needs. Five Benefits of Joining Your Local Postal Customer Council (PCC):
- Gain Knowledge: Access insights into USPS innovations, procedures, products, and services.
- Build Relationships: Connect with postal personnel industry peers in the mailing and shipping community.
- Stay Informed: Receive advice and support from postal and industry experts.
- Grow Your Business: Utilize educational opportunities for training and certification programs.
- Network Nationwide: Engage with the PCC community through meetings and events.
Joining your local PCC is a cost-free opportunity for businesses to enhance their success through efficient mailing and shipping solutions. Meetings are both in-person and virtual to allow for the most flexibility of your schedule. Sign up today at www.usps.com/joinpcc and become a member of your PCC to benefit from informative sessions such as the annual Educational Summer Series.
Alliance Educational Webinars Coming in 2026
Starting in 2026, the Alliance for Nonprofit Mailers will be providing educational webinars on a variety of topics. There will be no charge for the webinars, most of which will be for Alliance members only as a membership benefit. Occasionally webinars will be open to all Nonprofit organizations, as a way for us to communicate the work we are doing and attract new members.
We will be kicking off the webinar series in January 2026 with a webinar open to all nonprofit organizations, “Nonprofit Postage Rates – Past, Present and Future,” where we will talk about the evolution of the laws and policies governing nonprofit rates in the past and those that apply today, as well as what to expect in the July 2026 USPS price change. Stay tuned for more information!
If there are topics or speakers your organization is interested in hearing about, email kathy@nonprofitmailers.org with your thoughts!
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