USPS Rate Increase Update

The following update is from MIDLAND, Postal Affairs Manager-Matt Jensen.

Last Friday afternoon, the Postal Regulatory Commission (PRC) rejected a USPS request tied to density rate authority for January 2027, which would comprise the majority of that increase. Based on that and the USPS’s current ability to raise rates once per fiscal year (their FY runs October through September), here’s where it currently stands:

Scenario 1

The USPS can still pursue a January 2027 increase. However, if they do it’s now estimated to be 1.8%. If that happens, they wouldn’t be able to pursue another increase until October 2027 at the earliest, when their new fiscal year starts.

Scenario 2 – More Likely

Prior to being able to only raise rates once per fiscal year, the USPS typically raised rates in January and July. If the USPS foregoes a January 2027 increase for that smaller figure—it’s a lot of work to file and implement—we’d likely see them file for a July 2027 increase. If so, that’s currently estimated at 6.3%.

We’ll know by mid-October whether the USPS pursues a January 2027 increase. They’re required to file with the PRC for review at least 90 days prior to implementation.

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