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EMAF Institute for Postal Studies

Creating educational tools and information that can be used to inform the paper-based communications industry

Increased Rate Authority Will Not Solve USPS’s Financial Challenges

In December 2025, the United States Postal Service (USPS) petitioned for expanded rate authority to improve its financial position. EMAF and PostCom commissioned EIG to conduct an independent study on whether this approach will restore the USPS’s financial stability.

Increased Rate Authority Will Not Solve USPS’s FInancial Challenges

Key Findings:

  • The study conducted by EIG concluded that USPS’s financial challenges are cost driven.
    – Under the USPS strategic plan, Delivering for America (DFA), revenue has exceeded projections, but rising labor costs and declining productivity have more than offset those gains.
  • Scenario analysis shows that expanded rate authority, even at elevated levels such as 23% as requested by the USPS, does not restore financial balance and, under more price-responsive assumptions, can worsen outcomes.
    – If demand is more price-responsive than the USPS’s predictions and is more in line with the mailing industry’s analysis, rate increases will drive larger volume losses and will reduce network utilization with a long-term reduction in revenue.
  • The study determined that there is a credible path to long-term financial stability, but it requires a multi-year cost containment and productivity plan, not expanded rate authority.
Download Study

2023 U.S. Mailing Industry Economic Job and Revenue Study

The U.S. Mailing Industry is the economic powerhouse that accounts for 7.9 million jobs and $1.9 trillion in sales revenue. Learn how this industry impacts every American, household, and community.

Economic Job and Revenue Study

This study analyzes the most recent information (2022) collected by U.S. Bureau of Labor Statistics in its Occupation Employment Statistics program on employment by occupation and industry, U.S. Census Bureau, U.S. Postal Service, and Department of Commerce’s Bureau of Economic Affairs.

Download National Jobs Card
Download Job Study Cards By State
Download Study
Download Congressional District Data

Postal Transformation

Throughout the world there is growing pressure to transform the traditional postal model as competition has increased the economic pressure on the traditional posts. Along with recent depressed economic trends, competition has had a negative impact on revenue; and at the same time, increased cost pressures in the labor-intensive and traditionally inefficient posts has squeezed margins. Postal transformation is, therefore, one of the most important issues facing our industry. This section contains studies, articles, surveys, linkages, and presentations relative to this issue.

IPS Documents
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