Frequently asked questions
Delivering for America establishes clear strategies to quickly achieve financial sustainability and service excellence. The Plan’s strategic initiatives are designed to reverse a projected $160 billion in losses over the next ten years by achieving break-even operating performance, while improving the reliability and predictability of service.
Our Plan delivers:
- A modernized Postal Service capable of providing world-class service reliability at affordable prices.
- Maintenance of universal six-day mail delivery and expanded seven-day package delivery reach.
- Workforce stability and investment strategies that empower, equip, and engage each employee and put them in the best possible position to succeed.
- Innovation that grows revenue and meets changing marketplace needs.
- Financial sustainability to fulfill our universal service mission.
In developing our Plan, we studied market research; prior internal plans and proposals; reports from the Office of the Inspector General, the Government Accountability Office and the Postal Regulatory Commission; and many white papers and documents authored by postal stakeholders. We received feedback from key customers and industry associations, our unions and management associations, and members of Congress – valuable input from a diverse set of stakeholders.
We look forward to productive discussions with our stakeholders about our goals for the future of the organization and the most effective strategies to pursue them. We will listen and learn and adapt the plan to take account of stakeholder advice and guidance, carefully considering advice from the Postal Regulatory Commission, findings from the Office of the Inspector General, and feedback from our customers. We will adhere to legal, statutory, contractual, and regulatory requirements as we implement the initiatives within this Plan.
Yes. The Plan strengthens our ability to fulfill our mission to provide universal service, while maintaining six-day mail delivery and expanding seven-day package delivery reach for our customers and the American public.
After 16 years of pricing policies misaligned with organizational needs, the Postal Regulatory Commission provided a new pricing framework for market dominant products in 2020. Since March 2021, we have taken a more rational pricing approach including the judicious implementation of new and existing pricing authority. We implemented a Market Dominant product price increase on August 29, 2021. Under this rate change, USPS prices remain among the most affordable in the world. We additionally provided notice that we will review Market Dominant prices twice per year but chose to forego a January 2022 price increase. We have also utilized competitive market pricing to bring rates in line with the marketplace and provide the Postal Service with much needed revenue. Use of new pricing authorities and approach has already generated an annualized revenue increase of $1.9 billion.
The Postal Service implemented service standard changes for First-Class Mail and Periodicals on October 1, 2021. These changes were designed to enhance service reliability and also enable redesign of our processing and transportation networks to improve efficiency.
For many years, the Postal Service has recorded annual financial losses. Absent change, we are projected to lose another $160 billion over the next ten years.
This Plan’s strategic initiatives are designed to reverse this course and achieve break-even operating performance over the ten-year period (and achieve positive net income by FY2023 or FY2024) through modest regulatory and legislative changes, effective use of newly acquired and existing pricing authorities, operating more efficiently across our enterprise, and by driving revenue growth through innovative customer solutions.
With full implementation of our Plan, we can achieve a long-term sustainable business model and provide our customers with the reliable service they expect and deserve and avoid any need for a costly bailout.
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