What did Postmaster General Louis DeJoy announce regarding his tenure and the future of the USPS?
Postmaster General Louis DeJoy announced last week his intention to step down after five years in the position and just four years into his Delivering for America plan to modernize the USPS through financial stability and operational high performance. This leadership change will occur after the Board of Governors selects an appropriate replacement. Only the 11 Governors of the Postal Service can hire or fire a Postmaster General.
What more do you know about the Washington Post’s report of the White House preparing to have the USPS under the control of the Department of Commerce?
On the heels of Postmaster General Louis DeJoy announcing his departure, the Washington Post has reported President Donald Trump is preparing an executive order within days to dissolve the leadership of the U.S. Postal Service and place the independent mail agency under the control of the Department of Commerce. As of last Friday morning, White House officials are denying the report.
The implications of such a move are unclear and the Postmaster General has advised employees to ignore the story, saying the service was created by law and can only be changed by law.
This situation is very fluid and we will keep you updated as the story develops.
What can you tell us about the recent postage price announcement?
The USPS avoided a postage rate hike in January, but we’re getting intel that bigger increases are coming in July. Rate changes are currently under review that could increase rates by 7.37% for market-dominant classes and up to 9.4% for Marketing Class Flat. The breakdown of the key categories is below:
First Class Letter = as much as a 7.4% increase
First Class Flat = as much as a 7.4% increase
Marketing Class Letter = as much as a 9.4% increase
Marketing Class Flat = as much as a 9.4% increase
Periodical Flat = as much as an 11.4% increase
It is more important than ever to utilize the USPS promotional discounts and the mail growth incentive to help offset these postage increases. SPC can help you build & execute a postal savings plan that fits your campaign objectives.
How are price increases determined?
The USPS has the authority to use the Consumer Price Index (CPI), which currently stands at 2.68%, as a base rate for proposed price increases. This, combined with other authorizes, contributes to the significant increase we are anticipating for July. The USPS is not required to use all rate increase authorities and has the option to “bank” some for future use. However, due to Postmaster General Louis DeJoy’s aggressive strategy, there will be no rollover of unused authorities from the April 2024 filing. As shown in the table below, the total of all the authorized increases results in an expected price increase of roughly 7.37% for the market-dominant classes, pending confirmation by the Postal Regulatory Commission (PRC).
| CPI as the basis for the July 2025 increase | |
| CPI Authority | ῀2.9% |
| Density Authority | 2.165% |
| Retirement Authority | 2.305% |
| Total Authority Compensatory Classes | ῀7.4% |
| Total Authority Non-Compensatory Classes | ῀9.4% |
Does varnish coating qualify for the USPS Tactile, Sensory, and interactive promotion?
Yes. For varnish to be eligible for use, it must be applied as a flood or spot varnish treatment rather than an overall coating. The USPS requires a visible distinction between varnished and non-varnished areas.
What can our clients expect from the 2025 National Postal Forum?
This year the National Postal Forum will be hosted in Nashville, TN, from April 27th – 30th, at the Gaylord Opryland Convention Center. The theme of the event is “Leading Forward,” promising valuable insights and networking opportunities.
SPC will once again have a significant presence at the NPF. We invite you to visit us at booth #619. SPC will also host an educational session, Direct Mail Showcase, at 1:00 – 2:00 pm. During this session, we will showcase the latest trends in direct mail and present over 25 impactful examples from various industries, including healthcare, automotive, retail, and banking. This session will highlight strategies for optimizing direct mail campaigns while leveraging USPS incentives that encourage innovative use of mail. Additionally, you’ll have the opportunity to see live examples of different mail
