In 2021, USPS has authority to increase rates to cover expenses

Tonda Rush

Jan 6, 2021

The possibility of 7-9% annual postage increases under a new Postal Regulatory Commission order threatens mailed newspapers in 2021. The PRC is giving the Postal Service new authority to increase rates to cover increased expenses, including unfunded retirement liabilities, shrinking mail volumes to pay for ever-expanding delivery points and problems with flat-sized mail that does not cover the costs assigned by USPS. PRC said it had decided the price cap, which kept postage from rising more than inflation since 2007, no longer worked and USPS needed more money. Mailers’ organizations cried foul and noted the increased postage would hit businesses already weakened from the pandemic and recession. NNA directors said they were absorbing a 500-page PRC order and looking at their next moves, including a possible appeal to the federal courts.