USPS makes its pitch to again slow delivery for some mail

The U.S. Postal Service is moving forward with a plan to slow down delivery for a relatively small portion of mail, telling its regulator the changes would save nearly $4 billion annually and better reflect the evolving nature of mail usage. 

USPS has requested an advisory opinion from the Postal Regulatory Commission on its Regional Transportation Optimization plan, which requires mail to sit overnight at post offices instead of being collected each evening for transportation to a processing center. The mailing agency has been rolling out the changes on a limited basis and now, despite mixed results and significant pushback, it is looking to implement the plan on a national level. 

Only some facilities will be impacted by the reforms, namely those more than 50 miles from the Postal Service’s new Regional Processing and Distribution Centers. USPS plans to stand up about 60 of those mega-centers, most of which will be located in urban areas. That has led to criticism that postal management’s mail slowdown will disproportionately impact rural communities. 

Postmaster General Louis DeJoy has said the change is a key part of his 10-year plan to fix USPS’ finances and operations, noting it would save between $3.6 billion and $3.7 billion annually. The existing delivery model, postal management said, in which mail is collected at every post office both in the mornings and in the evenings, is based on a “bygone era of significant single-piece letter mail volumes.” While the system may have made sense in that reality, USPS said, it has “engendered costs impossible to justify in today’s environment.” 

The Postal Service stressed that all First-Class mail will still be delivered in one to five days. USPS previously slowed down its delivery standards in 2021, allowing itself four or five days to deliver some mail in a move that affected about 40% of First-Class volume. 

The new proposal would slow down delivery for about 11% of First-Class mail by volume, though it would require mail to sit overnight at a majority of post offices across the country. Mail volumes are concentrated in urban areas, meaning roughly 75% of First-Class pieces would be unaffected. About 40% of single-piece, First-Class mail would be delivered more slowly. 

USPS said it would deliver 14% of First-Class mail more quickly as a result of its changes, in large part because local mail can move to a processing center without waiting for slower, more rural pieces to come in. 

While postal management is seeking PRC’s advisory opinion, as it must whenever implementing change that would “generally affect service on a nationwide or substantially nationwide basis,” the ruling is non-binding. PRC has repeatedly expressed concern over DeJoy’s reforms and earlier this year called on him to pause all changes to his network. As part of its request, USPS is also asking for an opinion on its processing plant consolidation plan that will result in the 60 mega centers. 

Some areas where USPS has piloted its changes, most notably Richmond, Virginia, and Atlanta, have seen mail delays spike as a result. The Postal Service said service there is steadily improving and it will implement lessons learned as it expands the reforms on nationwide basis. DeJoy recently told Congress some hiccups along the way were expected, noting “the first rockets that went to the moon blew up.”

The blowback from the initial efforts was significant enough that DeJoy vowed to pause them until after the election, which promises large-scale mail voting. The sites that have already implemented the new collection schedules will receive extra transportation for ballots specifically starting Oct. 21, while plant consolidation efforts are largely paused until 2025. 

In addition to the PRC, DeJoy’s plans have drawn criticism from large-scale mailers and a bipartisan chorus on Capitol Hill. Even before USPS formalized its proposal, more than a dozen lawmakers from both parties wrote a letter to DeJoy urging him not to go through with his mail optimization plan. 

“While we understand the need for modernization and financial changes across the Postal Service, these changes cannot come at the expense of rural residents who rely on the USPS," the 18 House members said. “For many families that we represent, a one-day delivery delay could mean late fees on a bill, a held-up paycheck creating financial stress and increased health risks awaiting critical medication.”

Lawmakers and stakeholders expressed concern that USPS was looking to implement its reforms as on-time delivery has plummeted. The agency delivered 85% of First-Class mail on time in fiscal 2024, down from 93% the previous year. For mail traveling greater distances, pieces in a three-to-five day delivery window and those more likely affected by the new changes, USPS met its target around 73% of the time. 

“At the conclusion of an absolutely dismal year of service performance, it is disappointing that the USPS response seems most focused on changing how performance gets measured and reported than on improving the experience of actual customers,” said Mike Plunkett, president of the Association for Postal Commerce, which represents large-scale mailers. He added the potential cost savings are significant, but the agency has a weak track record in meeting its ambitious accounting goals. 

USPS said it will quickly address any service issues that crop up during implementation, which will not occur for at least three months. 

“The Postal Service is committed to minimizing the disruptions that occur, correcting any issues in an effective manner and adjusting our processes to improve our execution of these changes moving forward,” the agency said. 

It added that it was unmoved by concerns raised after it solicited feedback last month about the inordinate burden of its reforms on rural communities, particularly customers awaiting Social Security checks and medicines. 

“The Postal Service has carefully considered these views and has determined to move forward with the proposal,” USPS said. 

The agency stressed that its current system requires extra trips with trucks filled nowhere near their capacities and the new plan would allow for better utilization. USPS will no longer have to pay contractors to sit on “layovers” after they drop off morning mail and await evening deliveries, it added. 

Ultimately, the Postal Service said, the current system is untenable and the changes better account for the varying distances pieces of mail must travel within the same region. USPS said it had hoped to institute its “optimization” plan without having to change its delivery standards, but found that was not possible.