Key Postal Update: Lower 2026 Postage Projections, Zone Pricing Denied, and Network Changes
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We’ve compiled the most critical updates from the latest postal developments to keep you informed of changes that may impact your direct mail strategy. Here’s a quick summary:
- 2026 Pricing Projections Lowered: The USPS is forgoing a January 2026 price change. Updated, lower projections for the anticipated July 2026 increase are 5.1% for Marketing Mail and 4.6% for First-Class Mail.
- January 2026 Structural Changes: Non-rate impacting changes include introducing shape-based label lists, expanding the Postage Statement detail, and shifting the Mailing Promotions incentive baseline to the calendar year.
- Zone Pricing Denied: The Postal Regulatory Commission (PRC) officially denied the proposed zone-based pricing model for Marketing and Periodical mail, requiring USPS to resubmit a new plan inclusive of cost avoidance data.
- PRC Leadership Change: Chairman Michael Kubayanda resigned on October 3rd.
- Future Classification Changes Approved (for July 2026 Rate Case): Approved changes include raising the maximum weight for Marketing Mail Flats to 20oz and Carrier Route Flats to 24oz, and introducing Heavy Printed Matter (max 15 lbs, marketing-only). The request to eliminate Bound Printed Matter was denied.
- Service Performance (FY25 Q4): Marketing Mail Letters (SCF entered) achieved 96.60% On-Time delivery. Overall Marketing Mail Flats performance was -4.10% vs SPLY. Overall Presort First-Class Letters were up +0.74% vs. the previous year.
- Network Transformation: The transition to the new network continues with 14 of 56 planned Regional Processing and Distribution Centers (RPDC), 17 of 196 Local Processing Centers (LPC), and 123 of 400 estimated Sorting and Delivery Centers (S&DC) now active.
Download the complete document here, or to talk to the experts, please contact GrayHair Software at engage@grayhairsoftware.com.
