MTAC Recap Summer 2025
Written by Rob Glaza
Director, Postal Affairs & Logistics American Litho
Let’s call it what it was — a birthday bash with a business edge.
The USPS celebrated its 250th anniversary this month, and while there were speeches, stamps, and a guy in a Ben Franklin costume, the real fireworks (of the regulatory kind) came during the Summer MTAC meeting in D.C. this July.
For those of us still nursing paper cuts from the last rate case, the good news: the Postal Service is projecting modest increases in 2026. The bad news? Those projections come with more caveats than a late-night infomercial.
But we’ll get to that.
First Impressions Matter
The headliner this time around? A new Postmaster General. David Steiner — a former FedEx board member and Waste Management CEO — made his MTAC debut just one week into the job. And I’ve got to say, he stuck the landing.
Affable. Direct. Surprisingly funny for a logistics guy. He put rumors to rest, stating plainly he opposes privatization of the USPS and is “bleeding blue” now. That FedEx purple? Left at the door.
His backstory includes a personal trip to Normandy that sparked his decision to accept the role. Whether you call that inspiring or cinematic, one thing’s clear — the man knows the importance of service.
Pricing: Low Inflation, High Anxiety
Sharon Owens (USPS Pricing & Costing) offered forward guidance, forecasting a 1.2% increase in January 2026 and 3.8% in July 2026 — both tied to inflation and the ever-controversial density adder. Sounds manageable, right?
Well, maybe. The PRC is still weighing whether to allow only one price increase per year moving forward. If that happens, expect the January hike to vanish faster than a pre-sort pallet on a Friday afternoon.
The USPS projects future rate authority under current regulations, broken down by CPI, density, and retirement-related adjustments. Notably, retirement authority phases out after July 2025, tightening the levers available to drive future increases.
Source: USPS / S&P Global Market Intelligence | Assumptions as of Jan 2025
Zone-Based Pricing: Coming Soon?
Big structural changes are brewing. Starting January 2026, USPS is proposing:
- Zone-based pricing for Marketing Mail and Periodicals
- Elimination of Area Distribution Center (ADC) entry and presort discounts
- Similar changes for First-Class Mail
The goal? Streamlining. The result? Yet another round of recalibrating your mail prep and logistics game. More to come as the details shake out.
Peak Season Service Woes
A new OIG report shed light on FY2025’s peak season—and let’s just say, if this were a holiday gift, you’d return it.
Despite lowering service performance targets and giving themselves extra delivery time (literally), USPS still missed five of six targets. The root causes?
- Misjudged package volumes
- Poor coordination of offloads
- Dock congestion
- Freight auction chaos
- Staffing and equipment gaps in major markets like Chicago and LA
Add in 82,000 canceled surface trips and $1.2 million in wasted transport spend… and it’s clear: USPS has its hands full.
Mail Theft Gets Congressional Spotlight
On Capitol Hill, the House Oversight Subcommittee turned its attention to mail theft and crimes against carriers. The surge in stolen arrow keys has fueled a sharp rise in robberies and assaults — up 845% since FY2019.
Project Safe Delivery has helped harden mailboxes, but criminals have shifted tactics. Letter carriers are now prime targets. Industry voices and postal unions alike are calling for the return of off-site authority for Postal Police Officers and tech-driven solutions to replace outdated key systems.
Cheers to the Next Chapter
All in all, the vibe at MTAC was surprisingly optimistic. New leadership. New conversations. New possibilities. But let’s not kid ourselves — the next Board of Governors session will bring financial realities into sharper focus.
What Does This Mean for You?
Change is coming — again. From pricing models to delivery performance, the ripple effects of everything discussed at MTAC are going to hit mail owners in different ways. The smartest move? Stay proactive. Now’s the time to revisit your strategies for in-home timing, commingling, and volume-based discounts — because every fraction of a penny counts.
At American Litho, we attend MTAC and track every regulatory twist and turn so you don’t have to. Whether it’s navigating zone-based pricing, avoiding missed incentives, or optimizing your drop ship strategies, we’re here to help you stay ahead — and stay profitable.
Let’s talk about how to turn these challenges into opportunities.
If you’re unsure how the latest USPS shifts will impact your next campaign, our team is ready to dive in and get to work — because mailing smarter isn’t optional, it’s essential.
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