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USPS Addresses PRC Advisory Opinion

On February 20, 2025, the United States Postal Service (USPS) publicly responded to the Postal Regulatory Commission's (PRC) recent Advisory Opinion scrutinizing its proposed changes to service standards. The PRC's opinions are part of Docket No. N2024-1, titled "Operational and Service Standards to Meet Statutory Requirements for Reliable, Efficient High-Quality Service and Financial Sustainability Through an Integrated Mail and Package Network."

Summary of the Advisory Opinion

In its advisory opinion, the PRC highlighted concerns about potential service level impacts resulting from the USPS's proposed changes. The Commission described these modifications as a "severe degradation" of service, thereby voicing its apprehension towards the proposed adjustments intended to streamline operations and reduce costs. Notably, the USPS projected that these changes could yield annual cost savings of nearly $4 billion, which the PRC dismissed as "meager."

USPS's Response

In a cover letter addressed to PRC Chairman Michael Kubayanda, Postmaster General Louis DeJoy expressed his perplexity at the Commission's characterization of the proposed savings. He stated, "I must say that I was confounded by the Commission's dismissal of cost savings...while characterizing service standard changes as a severe degradation in service that must be avoided at all costs."

The Postmaster General affirmed that, despite disagreements on several points within the Advisory Opinion, USPS remains committed to exploring common ground. This indicates a willingness to cooperate with the PRC in ensuring that services remain functional, reliable, and sustainable while continuing to meet the needs of American citizens and businesses.

Moving Forward

DeJoy emphasized that USPS is dedicated to maintaining high-quality service for its customers as part of a broader strategy for continuous improvement. The organization plans to incorporate some recommendations from the PRC's opinion into its ongoing transformation efforts, underscoring a commitment to creating a financially sustainable and efficient postal service. The USPS is implementing a 10-year transformation plan, titled "Delivering for America," aimed at modernizing the postal network, enhancing service across all mail and shipping categories, and ensuring its long-term viability as a core institution in American society.

The Importance of the USPS

It’s essential to acknowledge that USPS operates as an independent federal establishment mandated to be self-financing. It provides postal services to 169 million addresses across the United States, often surpassing daily operations six to seven days a week. With nearly no tax-based funding for operations, the USPS funds its services primarily through the sale of postage, products, and services.

This recent dialogue with the Postal Regulatory Commission showcases the delicate balance the USPS must maintain between operational efficiency and service quality, a challenge that will continue to evolve in the face of budget constraints and changing consumer needs.

The full response to the PRC's Advisory Opinion and a comprehensive list of the detailed responses can be found on the USPS Newsroom. Customers and stakeholders alike can stay informed about the USPS's evolution and ongoing efforts to adapt to the demands of the modern mail and package delivery landscape.

For further information, follow USPS on its social media platforms, including X, Instagram, and LinkedIn, or visit their official website.