Alliance Report

October 14, 2025

Issue 25/09

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.

Leading the Next Chapter of the Alliance

I am delighted to have been appointed the next Executive Director of the Alliance of Nonprofit Mailers, filling big shoes as current Executive Director Steve Kearney moves on to a well-deserved retirement. There is a precedent of notable past leaders at the Alliance, including Tony Conway and Neal Denton. We, who have had the privilege of knowing Steve for some years, wish him all the best in his retirement. I’ve witnessed firsthand the positive things he has accomplished at the Alliance, and I plan to continue the fine work he has done while bringing some of my own flavor to the association.

Nonprofit mailers have faced challenging times the past few years as the USPS raised prices twice per year and national politics impact funding. As you get to know me, you will find that I am an optimist, and I hope the next few years are going to bring some welcome relief for nonprofit (and commercial) mailers. We are off to a good start with new Postmaster General David Steiner, who I had the pleasure of meeting at the September Board meeting of the Alliance. My favorite quote from Steiner during the meeting was “nonprofits are the backbone of America.” On that point, we certainly agree.

Shortly after the meeting, where our Board told Steiner about the negative impact the twice per year price increases have on their ability to fundraise and support their crucial programs and services, the USPS announced it would forego a January 2026 price increase. Of course, it was not just the Alliance that told the new Postmaster General of the pain twice a year increases cause…but it’s a good decision.

As we embark together on the next chapter of the good work being done by the Alliance of Nonprofit Mailers, it is important that every member continue to support the Alliance and engage with us on current and new initiatives. Our members and our sponsors are the lifeblood of this organization, and I look forward to the opportunity to connect with each of you. Call me or drop me an email (kathy@nonprofitmailers.org) and tell me how ANM can help your organization. And be sure to follow me (https://www.linkedin.com/in/kathy-siviter-9367ab32/) and the Alliance (https://www.linkedin.com/company/alliance-of-nonprofit-mailers/) on LinkedIn to get the latest news!

PMG Steiner Addresses MTAC

Postmaster General David Steiner recently addressed attendees of the Mailers Technical Advisory Committee (MTAC) in Washington, DC, sharing some of his initial impressions of the Postal Service. Steiner said the USPS is an “unbelievably sophisticated organization,” serving 170 million delivery points each day that could be sending mail to any of the other 170 million delivery points, resulting in trillions of possibilities any given day.

The Board of the Alliance of Nonprofit Mailers had met with the new Postmaster General in September where a number of issues were discussed. His comments at the MTAC meeting were consistent with what was said at the ANM meeting.

Steiner mostly took questions from the attendees after brief opening remarks that included his opinion that the USPS can’t “cost cut” its way to prosperity, that it needs to grow volume in all lines of its business, including mail as well as packages. He said he is not convinced of the foregone conclusion that mail is declining because of digital, and said he would like USPS to focus more on investing time and effort to slow or reverse those trends. On deferring the January 2026 price change, the PMG said in the short term price has to be one of the things the USPS uses but in the long-term, he would like to be sure the USPS is properly managing price and volume impacts.

The PMG told the MTAC group that he feels the USPS owns last mile delivery and also the first mile – those are its two strongest assets. He noted that the Delivering for America (DFA) plan focused on the middle mile and was more of a “tactic” vs. a strategy, focused on transportation. Steiner said he believes the USPS needs to focus on the customer, which starts with service.

When asked one thing that has surprised him in his new role, Steiner said the number and diversity of stakeholders. He said stakeholders need to understand that the USPS could do anything they want, but everything comes at a cost. “We need to have that conversation with the American public,” he said, “about what we are.”

USPS Shares Price Change Forecast at MTAC

The USPS at the recent meeting of the Mailers Technical Advisory Committee (MTAC) shared its current forecast for price changes in 2026 and 2027. As can be seen on the below slide presented by USPS Vice President of Costing & Pricing Sharon Owens, the USPS’ decision to forego a January 2026 price change (which she said was worth about $181 million to USPS) means that percentage would now be included in a July 2026 price change of a total estimated 5.3%. There are factors that could change that amount, such as the rate of CPI as well as the calculation for the Density additional rate authority (which won’t be available until the USPS files its Annual Compliance Report at end of 2025 and the PRC approves the numbers in March 2026).

It should be noted that SLS Consulting (economics advisor to the Alliance) had contacted Owens suggesting that the Density additional rate authority percentage shown on the chart is incorrect. Owens acknowledged that appears to be true, and said the USPS is recalculating the number, which could end up being closer to 2% than the 2.7% shown in the chart.

Owens said the USPS has prepared a January price change for Competitive Services products which the Postmaster General was being briefed on and which, with his approval, would be presented to the USPS Board of Governors in November.

Owens also presented the below chart, which attempts to forecast any impacts on additional rate authority from incentives and promotions. Historically these offsets have been part of any price increase but barely moved the needle until July 2025 when the Mail Growth Incentives made a significant difference in the overall price changes.

The grey bars on the below chart are an early attempt by the USPS to estimate the impact of promotions and incentives. When the USPS gives discounts/incentives, it can add additional rate authority to future price increases for those amounts. For July 2026, at this time, the USPS is estimating -0.2% impact for First-Class Mail, and +0.3% impact for Marketing Mail. There is no impact for Periodicals because they are not eligible for the Mail Growth Incentive or promotions. Owens cautioned that the below numbers are based on the assumption that there are no significant changes in promotions, and that the data will be refined when the USPS gets an additional quarter of data. She said the USPS will share updated projections when they are available.

PRC Denies USPS Proposal to Implement Zone-Based Pricing for Marketing Mail and Outside Periodicals

The PRC has issued an Order denying the USPS’ request to implement zone-based prices for Marketing Mail and Outside Periodicals. The PRC also disagreed with the USPS’ argument that drop ship discounts should not be treated as workshare and subject to the workshare passthrough rules. The Alliance of Nonprofit Mailers (ANM) joined with other associations in sponsoring economic testimony from Dr. John C. Panzar, Louis W. Menk Professor of Economics, Emeritus, at Northwestern University, that argued drop ship discounts should be treated as workshare, which led, in part, to the PRC’s denial of the USPS’ request.

In its decision, the PRC said it rejects the USPS’ proposal because “it fails to recognize transportation worksharing between Zones A – D and between Zones A – D and the DSCF [Destination Sectional Center Facility].” “If the Postal Service continues to seek approval to replace origin-entry with a zone-based pricing structure, the Commission directs the Postal Service to develop and submit for Commission approval a methodology for measuring avoided costs between Zones A – D and between Zones A-D and the DSCF.” The PRC also did not approve the USPS’ proposal to add Zones A – D to the product descriptions for most USPS Marketing Mail products and to Outside County Periodicals “at this time, but would consider approval subject to the Postal Service providing for Commission approval a methodology for measuring avoided costs between Zones A – D and between Zones A – D and DSCF.”

The ball is now back in the USPS’ court as to whether it will continue an attempt to move to zone-based pricing.

USPS Proposes Cost Methodology Changes for FCM and MM Presort Letters

The USPS on Sept. 30, 2025, filed a petition with the Postal Regulatory Commission (PRC) for changes in the cost methodology for First-Class Mail and Marketing Mail presort letters to incorporate the USPS’ costs of Undeliverable-as-Addressed (UAA) mail. https://prc.arkcase.com/portal/filings/138165

The PRC has opened Docket No RM2025-13 to consider the USPS’ petition and initial comments currently are due by November 3, 2025. According to the USPS, costs of UAA activities are not currently included in mail processing unit costs, and workshare related savings do not include UAA activities.

If approved by the PRC, the changes would impact First-Class Mail and Marketing Mail presort workshare passthroughs, and could make them out of compliance with the PRC’s workshare rules, requiring the USPS to adjust them in a future price change. Passthrough is the part of the USPS’ costs that it passes through to the mailer for work performed that reduce those costs. Because the PRC has not yet ruled on changing the requirements for when a passthrough exceeds 100% (currently the USPS can drop the passthrough all the way down to 85%), it is possible that the cost changes could cause workshare discounts to be decreased in a future price change. A decrease in workshare discount would mean a higher postage rate for the mailer. This is a complicated proceeding and industry associations are likely to oppose the changes.

PRC Dismisses USPS’ Proposed Service Performance Measurement Exclusion Request

The PRC has dismissed the USPS’ proposal to exclude mailpieces from service performance measurement due to “extraordinary events.” https://prc.arkcase.com/portal/filings/138215

The USPS had proposed an extremely vague definition of “extraordinary events,” ranging from extreme temperature to natural disaster and including postal facility re-directs (which often are made in an effort to improve service for a backlogged facility). Industry commenters were unanimous in opposing the USPS’ proposed changes, arguing that removing more mail from measurement would make the reality of service performance even more different than that reported by the USPS. Commenters suggested that the USPS include these pieces in measurement but that it could provide the PRC with reports when significant impacts are encountered which the PRC could consider in its overall assessment of USPS service performance.

The PRC in issuing its decision said that “[d]ue to the vagueness and ambiguity of the planned changes, the Commission is unable to form a complete understanding of the scope of, and justification for, the mail volume that would be excluded, and the Commission cannot meaningfully assess the potential impact of the planned changes on the Postal Service’s service performance scores.” While dismissing the USPS’ proposed changes, the PRC provided the USPS with instructions on the minimum amount of information it would need from the USPS if it decides to pursue the changes in a subsequent filing.

PRC Chair Resigns

Michael Kubayanda, chair of the Postal Regulatory Commission, last week announced his resignation from the PRC. Kubayanda served on the PRC for more than six years and before resigning held the position of chair. In a posting on LinkedIn, Kubayanda said “the time has come to explore new opportunities and challenges, and I have left the Commission after weighing change for a while.” According to a Federal News Network article, “Kubayanda’s term lasts through November 2026, but he told Federal News Network that he’s stepping down from the agency ‘completely on my own accord.’”

As long as there is a quorum, the PRC can still operation, but there are potential implications of only having four Commissioners vs. the full complement of five. It might be hard or impossible to reach a consensus vote, with a potential tie. The PRC is in the midst of deliberating some very significant proceedings, including whether to limit the Postal Service to only one price increase per year on Market Dominant products; the next phases of its “5-year” review of the rate structure, and other proceedings.

Until the President can submit a nominee (subject to Senate confirmation), current Vice Chairman of the PRC Robert Taub will carry out the PRC administrative duties.

Supreme Court Hears Case on USPS Delivery

A Texas woman who claims the USPS intentionally withheld her mail from being delivered has taken the case to the Supreme Court. Lebene Konan, a Texas real estate agent and landlord is asking the Supreme Court to be able to continue her lawsuit against the USPS, despite a 1946 federal law that shields the USPS from legal liability for losing the mail. https://www.cnn.com/2025/10/08/politics/postal-service-supreme-court-usps

Changes Coming to USPS Business Customer Gateway

The USPS is working on a new system to replace the existing Business Customer Gateway (BCG) and users will need to migrate to the new Customer Onboarding Portal (COP). The BCG is a centralized online portal for businesses to manage their mailing and shipping services, access USPS tools, and find information on promotions and incentives. It is a single entry point for a wide range of services, including tracking mail, managing mailing activity, signing up for promotions, and accessing shipping and other business tools. The new COP is a system the USPS initially is designing for package shippers to access services but will be expanding to replace the BCG for mailers. The below chart describes some differences between the two systems.

The USPS will be providing more information on the new portal and plans to create an industry MTAC workgroup to help give the USPS feedback on the new system. In addition, effective October 16^th, the USPS is adding a new business validation to the BCG and COP that will check on the identity and device the business is using.

Alliance Report, October 14 2025