Postal Service Shifts Price Hikes to January for Faster Cash
Published Date: 7/24/2026
Notice
Summary
The Postal Service wants to change how it calculates price increases for its main mail services to switch its annual price updates to January starting in 2027. This move aims to bring in extra money earlier and better match customers’ budgeting schedules. The Postal Regulatory Commission is asking the public to share their thoughts by July 29, 2026.
Analyzed Economic Effects
3 provisions identified: 0 benefits, 1 costs, 2 mixed.
Move annual price changes to January
The Postal Service proposes shifting its annual market-dominant price adjustments to a January cycle beginning in January 2027. The Postal Service says this move "would generate much needed additional revenue sooner" and needs Governors approval no later than September 2026.
Use estimated FY2026 inputs with 5% cut
To support a January 2027 price change, the Postal Service proposes estimating FY2026 density rate authority using draft June year-to-date FY2026 volumes plus forecasted FY2026 Quarter 4 volumes, projecting delivery points by averaging FY2023-FY2025 growth rates, using the FY2025 Institutional Cost Ratio, and applying a 5 percent reduction to the estimate. The Postal Service notes April, May, and June 2026 volumes are unaudited.
Reconcile estimates with March 2027 figures
The Postal Service acknowledges the Commission will likely reconcile the estimated FY2026 density rate authority with the final figure published in March 2027. If the Postal Service underestimates the authority, the difference would be added to its banked authority; if it overestimates, the overestimate would be added to banked authority as a negative value.
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