Postal Rates

POSTAL RATES

On January 12, 2021, the News Media Alliance and the National Newspaper Association filed a motion joining a legal challenge to a Postal Regulatory Commission (PRC) final rule that removes a statutory price cap, that Congress approved with the Postal Accountability and Enhancement Act in 2006, that tied annual postal rate increases to the Consumer Price Index.

As a result of this inflation-based price cap, increases averaged roughly 2 percent per year over the last 14 years. Under the new pricing system, USPS could increase Periodical rates for newspaper issues by as much as 9 percent and Marketing Mail (Total Market Coverage products) by as much as 7 percent per year for the next five years. This means that some newspapers could see their postage bill increase by 45 percent.

A large group of mailers that use the USPS for the delivery of Market Dominant products (First Class, Periodicals and Marketing Mail) have joined together to legally challenge the PRC’s final rule.  The News Media Alliance and NNA filed its own motion to intervene in this case so that we could express a unified industry position before the DC Circuit Court of Appeals that describes the negative consequences of this decision on newspapers – both large and small markets, daily and weekly. By current law, Congress is required to make any decision to change the statutory rate cap for Market Dominant Mail, not the regulator. In addition, the elimination of the rate cap will have a long-term, damaging impact on newspapers and other mailers – at precisely the wrong time – and ultimately degrade USPS’ finances over the long-term.

Scroll down to view articles related to the legal challenge, as well as detailed blog posts outlining the implications of the new PRC rule for news publishers, and other postal rate stories.

Latest Articles


While Its Finances Improve, USPS Seeks to Squeeze More Revenue Out of Mailers
/

While Its Finances Improve, USPS Seeks to Squeeze More Revenue Out of Mailers

USPS just announced proposed postal rate increases that, in some cases, are seven times the rate of inflation. Here are the proposed rates that pertain to newspapers ... Read More
Statement: U.S. Postal Service Announces Staggering Postage Rate Increases
/

Statement: U.S. Postal Service Announces Staggering Postage Rate Increases

The United States Postal Service (USPS) filed proposed postage increases that are, in some cases, seven times the rate of inflation. This increase will have detrimental effects on small businesses, including small-market and rural newspapers that cannot afford the increased costs, particularly as they strive to recover from the economic ... Read More
Congress Considers Legislation to Shore-Up Postal Service Finances, But Rising Prices Still Threaten Mailers
/

Congress Considers Legislation to Shore-Up Postal Service Finances, But Rising Prices Still Threaten Mailers

Congress is working to improve the financial condition of the Postal Service, which mailers hope will ease pressure on USPS and reduce the need to squeeze revenues from monopoly mailers ... Read More
Higher Rates, Slower Service Highlights USPS 10-Year Plan
/

Higher Rates, Slower Service Highlights USPS 10-Year Plan

Postmaster General Louis DeJoy's new ten-year strategic plan for the Postal Service, “Delivering for America,” will impact all users of the postal system, with clear and potentially serious implications for newspaper publishers that rely on the postal system for newspaper delivery ... Read More
Newspapers Challenge Removal of Rate Cap Established by Congress
/

Newspapers Challenge Removal of Rate Cap Established by Congress

The News Media Alliance and the National Newspaper Association have joined a legal challenge of an order by the Postal Regulatory Commission that would effectively eliminate a Congressionally-mandated limit on postal rate increases for Periodicals and Marketing Mail ... Read More
New Rule May Mean Unsustainable Postal Rates for Newspapers
/

New Rule May Mean Unsustainable Postal Rates for Newspapers

On November 30, the Postal Regulatory Commission approved a rule, establishing a new rate-setting system that eliminates the previously implemented cap on postage rates which could harm newspapers and ultimately weaken the nation’s postal system.  ... Read More
×

Safe Harbor Bill News and Resources - Read more