Limited Progress, Updated 2027 Rate Guidance, and What Mailers Should Watch
The final Mailers Technical Advisory Committee (MTAC) meeting of 2026 brought few major developments. USPS outlined operational priorities, organizational changes and legislative goals, but offered limited evidence of progress toward resolving the broader challenges facing the mailing industry.
For mail owners, the takeaway is largely unchanged: continue planning carefully around postage costs, delivery performance and an uncertain financial outlook.
As an MTAC member, I continue to follow these discussions for American Litho customers. This meeting provided some useful updates, but little that would materially change our planning recommendations.
USPS Projects a 5.6% Average Increase in July 2027
The most immediately relevant update concerns postage.
USPS currently projects an average rate increase of approximately 5.6% for Market Dominant products in July 2027. That category includes USPS Marketing Mail and First-Class Mail.
This is preliminary guidance—not a final filing or approved increase. USPS said it expects to update its projections with its Annual Compliance Report in December.
An average increase also does not mean every mail class, category or individual mailing will increase by the same percentage.
My Take
The July projection gives mail owners a useful budgeting assumption, but campaign-level estimates will require the actual proposed rates.
Keep flexibility in your 2027 budget. Evaluate how potential changes could affect your specific formats, weights, preparation and entry strategies before finalizing campaign economics.
Peak Season Planning Continues
USPS described preparations for election mail and the upcoming peak shipping season, emphasizing coordination across processing facilities, transportation and delivery operations.
Officials acknowledged higher transportation costs and discussed setting facility-level operating goals to support consistent execution.
These are relevant operational priorities, but readiness plans alone do not establish that service will improve. Mail owners still need to monitor actual performance and allow appropriate time for campaigns with firm in-home requirements.
Marketing Mail Growth Remains a Priority
USPS also outlined a new commercial structure intended to bring revenue management activities closer together. Its agenda includes a strategy focused on growing Marketing Mail and further development of mail visibility technology.
Separately, Marketing Mail Optimized Delivery, a dynamic routing initiative, remains in the proof-of-concept stage. PostCom reported encouraging early indications and an anticipated second phase.
What This Means for Mailers
These initiatives warrant attention, but they remain work in progress. Mail owners should look for measurable results: more dependable delivery, useful visibility and practical opportunities to improve mailing efficiency.
Marketing Mail Growth Remains a Priority
USPS described near-term efforts to expand its borrowing authority, along with longer-term goals involving funding for government-imposed service obligations and greater flexibility in retirement fund investments.
Those are proposed approaches. The meeting did not establish that legislative relief had been secured.
PostCom also raised a concern about whether USPS continues to maintain ongoing long-term financial forecasts. Its commentary acknowledged that further clarification was needed.
For mail owners, the underlying question remains: how will USPS establish a sustainable financial path while supporting affordable, dependable mail service?
What Mail Owners Should Do Now
With limited movement on the larger issues, disciplined execution remains essential:
Use the preliminary July 2027 pricing guidance for scenario planning.
Revisit estimates when USPS releases updated guidance and proposed rates.
Review format, weight, mailing data and postal preparation early.
Coordinate production, transportation and entry with campaign timing.
Monitor delivery performance, especially for time-sensitive offers.
Moving Forward
This fall’s MTAC meeting offered updates, but few reasons to change course. Mail owners still need greater pricing predictability, consistent service and clearer evidence that postal initiatives are producing results.
At American Litho, our PostEvolution services help customers evaluate postage, formats, preparation, logistics and campaign timing together. That work remains valuable even when the broader postal environment shows little progress.
If you are reviewing your 2027 direct-mail plans, I welcome the opportunity to discuss your program.
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