U.S. Postal Service Announces Refined Service Standards and Cost Reductions

Improved Service Reliability and Projected $36 Billion in Savings Over 10 Years

The United States Postal Service (USPS) has announced refined service standards for several market-dominant services, including First-Class Mail, Periodicals, Marketing Mail, and Package Services. The changes, aimed at improving service reliability, will maintain the current five-day service standard for First-Class Mail while shortening delivery time ranges for other categories.

Enhancing Service Reliability While Reducing Costs

The refined service standards are part of USPS’s broader efforts to streamline operations and cut costs. The agency projects at least $36 billion in savings over the next decade from adjustments in transportation, mail processing, and real estate expenses. As part of its ongoing "Delivering for America" plan, the Postal Service has already:

• Lowered $1.8 billion in annual transportation costs by eliminating redundant networks and optimizing air and surface logistics.

• Reduced 45 million workhours, translating to $2.3 billion in annual savings through improved plant productivity and facility consolidation.

• Increased revenue by $3.5 billion annually by adapting product offerings in response to mail volume declines.

A Shift Toward Operational Efficiency

Postmaster General Louis DeJoy highlighted the need for these refinements, pointing to outdated regulations that have hindered USPS’s ability to modernize.

“The Postal Service has been historically burdened by service standard regulations and onerous business rules that have not been appropriately adjusted to account for volume and mail mix changes, forcing costly and ineffective operations,” said DeJoy. “By implementing the new standards and the operational initiatives to which they are aligned, we will be better able to achieve the goals of our modernization plans and create a high-performing, financially sustainable organization.”

More than 80% of market-dominant mail volume will remain unchanged, ensuring minimal disruption for customers while allowing USPS to implement operational efficiencies.

Implementation Timeline and Customer Impact

The changes will roll out in two phases:

• Phase 1: Begins April 1
• Phase 2: Begins July 1

To ensure a smooth transition, USPS will provide information at retail locations and engage with commercial mailers. Additionally, USPS will introduce user-friendly tools to help customers track delivery timelines. Importantly, retail access and services at USPS locations will remain unchanged.

For additional details, USPS has made an FAQ document available to address customer concerns.