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United States Postal Service
United States Postal Service
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United States Postal Service
Government signature used since 1993

USPS Headquarters in Washington, D.C. (2024)
Agency overview
FormedJuly 1, 1971; 54 years ago (1971-07-01)
Washington, D.C., U.S.
JurisdictionU.S. federal government
Headquarters475 L'Enfant Plaza SW
Washington, D.C. 20260-0004
U.S.
Employees640,000 (525,377 career personnel, 114,623 pre-career personnel) as of 2024
Agency executive
Key document
Websiteusps.com
Footnotes
[1][2][3]
Revenue (2024)Increase $80.5 billion[4]: 1 
Net income (2024)Decrease −$9.5 billion[4]: 1 
The full eagle logo, used in various versions from 1970 to 1993

The United States Postal Service (USPS), also known as the Post Office, U.S. Mail, or simply the Postal Service, is an independent agency of the executive branch of the United States federal government responsible for providing postal service in the United States, its insular areas and associated states. It is one of a few government agencies explicitly authorized by the Constitution of the United States. As of March 29, 2024, the USPS has 525,377 career employees and nearly 114,623 pre-career employees.[5]

The USPS has a monopoly on traditional letter delivery within the U.S. and operates under a universal service obligation (USO), both of which are defined across a broad set of legal mandates, which obligate it to provide uniform price and quality across the entirety of its service area.[6] The Post Office has exclusive access[7] to letter boxes marked "U.S. Mail" and personal letterboxes in the U.S., but has to compete against private package delivery services, such as United Parcel Service, FedEx, and DHL.[8]

History

[edit]

The first national postal agency in the US, known as the United States Post Office was founded by the Second Continental Congress in Philadelphia on July 26, 1775, at the beginning of the American Revolution. Benjamin Franklin was appointed the first postmaster general; he also served a similar position for the American colonies.[9] The Post Office Department was created in 1792 with the passage of the Postal Service Act. It was elevated to a cabinet-level department in 1872, and was transformed by the Postal Reorganization Act of 1970 into the U.S. Postal Service as an independent agency.[10]

The Post Office Department owned and operated the first public telegraph lines in the United States, starting in 1844 from Washington to Baltimore, and eventually extending to New York, Boston, Buffalo, and Philadelphia. In 1847, the telegraph system was privatized, except for a period during World War I, when it was used to accelerate the delivery of letters arriving at night.[11]

Between 1942 and 1945, "V-Mail" (for "Victory Mail") service was available for military mail. Letters were converted into microfilm and reprinted near the destination, to save room on transport vehicles for military cargo.[12]

The United States Information Agency (USIA) helped the Post Office Department, during the Cold War, to redesign stamps to include more patriotic slogans.[13] On March 18, 1970, postal workers in New York City—upset over low wages and poor working conditions, and emboldened by the Civil Rights Movement—organized a strike. The strike initially involved postal workers in only New York City, but it eventually gained support of over 210,000 postal workers across the nation.[14] While the strike ended without any concessions from the federal government, it did ultimately allow for postal worker unions and the government to negotiate a contract which gave the unions most of what they wanted, as well as the signing of the Postal Reorganization Act by President Richard Nixon on August 12, 1970. The act replaced the cabinet-level Post Office Department with a new federal agency, the U.S. Postal Service,[15] and took effect on July 1, 1971.[16]

Among the changes from the Postal Reorganization Act, a key aspect was the requirement for the USPS to be self-financing, which introduced a conflict with its other requirement to provide a nationwide service.[17] The next major legislation affecting the service, the Postal Accountability and Enhancement Act, was passed in 2006.[17] This act limited the services that the Postal Service could offer to only those it already provided and also established a requirement for the USPS to save money for the medical benefits of future retirees.[17] The Act set a goal to save $5 billion per year for the first 10 years of a 50-year schedule, however within 6 years the Postal Service began to default on its payments.[17] The Postal Service experienced lower revenues as mail use declined in the 2010s.[18] In 2012, in order to be able to meet obligations for payroll and continuing its operations, the Postal Service defaulted on payments due for retirements benefits in August and again in September that year.[19] In September 2014, it defaulted on the payments for the fourth time,[20] and continued to default into 2017.[21] The Postal Service sought financial reforms from Congress for relief from the funding obligation and debt from the defaults.[18] Legislation was introduced in Congress in 2016[22] as well as in 2019, aiming to remove the benefits funding obligations,[23][24] however no new legislation was passed until the 2022 Postal Service Reform Act (PSRA).[18] The PSRA was signed into law in April 2022.[17] It forgave $57 billion in Postal Service debt and released it from the obligation to set aside funds for future retirees' healthcare, as well as adding requirements for delivery timing and reporting on performance metrics, and allowing the Postal Service to offer some non-mail services.[18][25]

Current operations

[edit]

Deliveries

[edit]
USPS two-ton truck

As of 2023, the Postal Service operates 33,641 Post Office and contract locations in the U.S., and delivered a total of 127.3 billion packages and pieces of mail to 164.9 million delivery points in fiscal year 2022.[3]

USPS delivers mail and packages Monday through Saturday as required by the Postal Service Reform Act of 2022; on Sundays only Priority Express and packages for Amazon.com are delivered.[26] The USPS delivers packages on Sundays in most major cities.[27] During the four weeks preceding Christmas since 2013, packages from all mail classes and senders were delivered on Sunday in some areas.[28] Parcels are also delivered on holidays, with the exception of Thanksgiving and Christmas.[29] The USPS started delivering Priority Mail Express packages on Christmas Day in select locations for an additional fee.[27]

The holiday season between Thanksgiving and Christmas is the peak period for the Postal Service,[30] representing a total volume of 11.7 billion packages and pieces of mail during this time in 2022.[31]

Fleet

[edit]
A Grumman LLV, the USPS' main type of delivery truck

The USPS operates one of the largest civilian vehicle fleets in the world, with over 235,000 vehicles as of 2024,[3] the majority of which are the distinctive and unique Chevrolet/Grumman LLV (long-life vehicle), and the similar, newer Ford-Utilimaster FFV (flexible-fuel vehicle), originally also referred to as the CRV (carrier route vehicle). The LLVs were built from 1987 to 1994 and lack air conditioning, airbags, anti-lock brakes, and space for the large modern volume of e-commerce packages, the Grumman fleet ended its expected 24-year lifespan in fiscal year 2017. The LLV replacement process began in 2015, and after numerous delays,[32] a $6 billion contract was awarded in February 2021 to Oshkosh Defense to finalize design and produce 165,000 vehicles over 10 years.[33] The Next Generation Delivery Vehicle (NGDV), will have both gasoline and battery electric versions. Half of the initial 50,000 vehicles will be electric, as will all vehicles purchased after 2026.[34]

The number of gallons of fuel used in 2009 was 444 million, at a cost of US$1.1 billion.[35] For every penny increase in the national average price of gasoline, the USPS spends an extra US$8 million per year to fuel its fleet.[36]

The fleet is notable in that many of its vehicles are right-hand drive, an arrangement intended to give drivers the easiest access to roadside mailboxes. Some rural letter carriers use personal vehicles.[37] All contractors use personal vehicles. Standard postal-owned vehicles do not have license plates. These vehicles are identified by a seven-digit number displayed on the front and rear.[38]

Electrifying the USPS fleet

[edit]

Starting in 2026, all delivery truck purchases are scheduled to be electric vehicles,[39] partly in response to criticism from the Environmental Protection Agency and an environmental lawsuit,[40] and also due to availability of new funding provided by the Inflation Reduction Act of 2022.[41][42] The Act included $3 billion for electric USPS vehicles,[43][41] supporting the initiative by Postmaster General DeJoy and the Biden Administration to add 66,000 electric vehicles to the fleet by 2028.[42] The electric fleet will be composed of 9,250 EVs manufactured by Ford; 11,750 commercial off-the-shelf EVs; and 45,000 Oshkosh Next Generation Delivery Vehicles.[44][45] In February 2023, the Postal Service announced its purchase of the Ford EVs as well as 14,000 electric vehicle charging stations.[44][46] The fleet electrification plan is part of the Postal Service's initiative to reduce carbon emissions from fuel and electricity 40 percent and emissions from contracted services 20 percent by 2030.[47][48] The bulk of the savings comes from less expensive 'fuel' and less required maintenance. Other benefits include less pollution where children live and play.

In August 2024, the USPS deployed the first new vehicles from its fleet modernization project at its Topeka Sorting and Delivery Center in Kansas, including: an electric vehicle with higher clearance for routes delivering a high number of packages, and an electric delivery vehicle produced in partnership with Canoo[49] that is a "pod-like" smaller van.[50]

Operation and budget

[edit]
United States Postal Service surplus/deficit
United States Postal Service surplus/deficit

In fiscal year 2022, the Postal Service had $78.81 billion in revenue and expenses of $79.74 billion. Due to one-time appropriations authorized by the Postal Service Reform Act of 2022, the agency reported a net income of $56.04 billion.[51] In the 2023 fiscal year, revenue had increased to $79.32 billion, but reported a net loss of $6.48 billion.[52] In the 2024 fiscal year, revenue increased to $79.53 billion but reported a net loss of $9.5 billion.[53]

Revenue decline and planned cuts

[edit]

In 2016, the USPS had its fifth straight annual operating loss, in the amount of $5.6 billion, of which $5.8 billion was the accrual of unpaid mandatory retiree health payments.[54]

Declining mail volume

[edit]

First-class mail volume peaked in 2001 to 103.65 billion declining to 52.62 billion by 2020[55] due to the increasing use of email and the World Wide Web for correspondence and business transactions.[56] Private courier services, such as FedEx and United Parcel Service (UPS), directly compete with USPS for the delivery of packages.

Lower volume means lower revenues to support the fixed commitment to deliver to every address once a day, six days a week. According to an official report on November 15, 2012, the U.S. Postal Service lost $15.9 billion its 2012 fiscal year.[57]

Internal streamlining and delivery slowdown

[edit]

In response, the USPS has increased productivity each year from 2000 to 2007,[58] through increased automation, route re-optimization, and facility consolidation.[56] Despite these efforts, the organization saw an $8.5 billion budget shortfall in 2010,[59] and was losing money at a rate of about $3 billion per quarter in 2011.[60]

On December 5, 2011, the USPS announced it would close more than half of its mail processing centers, eliminate 28,000 jobs and reduce overnight delivery of First-Class Mail. This will close down 252 of its 461 processing centers.[61] (At peak mail volume in 2006, the USPS operated 673 facilities.[62]) As of May 2012, the plan was to start the first round of consolidation in summer 2012, pause from September to December, and begin a second round in February 2014; 80% of first-class mail would still be delivered overnight through the end of 2013.[63] New delivery standards were issued in January 2015, and the majority of single-piece (not presorted) first-class mail is now being delivered in two days instead of one.[64] Large commercial mailers can still have first-class mail delivered overnight if delivered directly to a processing center in the early morning, though as of 2014 this represented only 11% of first-class mail.[64] Unsorted first-class mail will continue to be delivered anywhere in the contiguous United States within three days.[65]

Post office closures

[edit]

In July 2011, the USPS announced a plan to close about 3,700 small post offices. Various representatives in Congress protested, and the Senate passed a bill that would have kept open all post offices farther than 10 miles (16 km) from the next office.[66] In May 2012, the service announced it had modified its plan. Instead, rural post offices would remain open with reduced retail hours (some as little as two hours per day) unless there was a community preference for a different option.[62] In a survey of rural customers, 54% preferred the new plan of retaining rural post offices with reduced hours, 20% preferred the "Village Post Office" replacement (where a nearby private retail store would provide basic mail services with expanded hours), 15% preferred merger with another Post Office, and 11% preferred expanded rural delivery services.[67] In 2012, USPS reported that approximately 40% of postal revenue comes from online purchases or private retail partners including Walmart, Staples, Office Depot, Walgreens, Sam's Club, Costco, and grocery stores.[67] The National Labor Relations Board agreed to hear the American Postal Workers Union's arguments that these counters should be staffed by postal employees who earn far more and have "a generous package of health and retirement benefits".[68][69]

Elimination of Saturday delivery averted

[edit]

On January 28, 2009, Postmaster General John E. Potter testified before the Senate[70] that, if the Postal Service could not readjust its payment toward the contractually funding earned employee retiree health benefits, as mandated by the Postal Accountability & Enhancement Act of 2006,[71] the USPS would be forced to consider cutting delivery to five days per week during June, July, and August.

H.R. 22, addressing this issue, passed the House of Representatives and Senate and was signed into law on September 30, 2009.[72] However, Postmaster General Potter continued to advance plans to eliminate Saturday mail delivery.[73]

On June 10, 2009, the National Rural Letter Carriers' Association (NRLCA) was contacted for its input on the USPS's current study of the effect of five-day delivery along with developing an implementation plan for a five-day service plan. A team of Postal Service headquarters executives and staff was given a time frame of 60 days to complete the study. The current concept examines the effect of five-day delivery with no business or collections on Saturday, with Post Offices with current Saturday hours remaining open.

On Thursday, April 15, 2010, the House Committee on Oversight and Government Reform held a hearing to examine the status of the Postal Service and recent reports on short and long-term strategies for the financial viability and stability of the USPS entitled "Continuing to Deliver: An Examination of the Postal Service's Current Financial Crisis and its Future Viability". At which, PMG Potter testified that by 2020, the USPS cumulative losses could exceed $238 billion, and that mail volume could drop 15 percent from 2009.[74]

In February 2013, the USPS announced that in order to save about $2 billion per year, Saturday delivery service would be discontinued except for packages, mail-order medicines, Priority Mail, Express Mail, and mail delivered to Post Office boxes, beginning August 10, 2013.[75][76][77] However, the Consolidated and Further Continuing Appropriations Act, 2013, passed in March, reversed the cuts to Saturday delivery.[78]

Retirement funding and payment defaults

[edit]

The Postal Accountability and Enhancement Act of 2006 (PAEA)[79] obligated the USPS to fund the present value of earned retirement obligations (essentially past promises which have not yet come due) within a ten-year time span.[80]

The U.S. Office of Personnel Management (OPM) is the main bureaucratic organization responsible for the human resources aspect of many federal agencies and their employees. The PAEA created the Postal Service Retiree Health Benefit Fund (PSRHB) after Congress removed the Postal Service contribution to the Civil Service Retirement System (CSRS).[clarification needed] Most other employees that contribute to the CSRS have 7% deducted from their wages. Currently, all new employees[which?] contribute into Federal Employee Retirement System (FERS) once they become a full-time regular employees.[81]

Running low on cash, in order to continue operations unaffected and continue to meet payroll, the USPS defaulted for the first time on a $5.5 billion retirement benefits payment due August 1, 2012, and a $5.6 billion payment due September 30, 2012.[19]

On September 30, 2014, the USPS failed to make a $5.7 billion payment on this debt, the fourth such default.[20] In 2017, the USPS defaulted on some of the last lump-sum payments required by the 2006 law, though other payments were also still required.[21]

Proposals to cancel the funding obligation and plan a new schedule for the debt were introduced in Congress as early as 2016.[22] A 2019 bill entitled the "USPS Fairness Act", which would have eliminated the pension funding obligation, passed the House but did not proceed further.[24] As of March 8, 2022, the Postal Service Reform Act of 2022, which includes a section entitled "USPS Fairness Act" cancelling the obligation, has passed both the House and the Senate;[82][83] President Joe Biden signed the bill into law on April 6, 2022.[84]

Rate increases

[edit]

Congress has limited rate increases for First-Class Mail to the cost of inflation, unless approved by the Postal Regulatory Commission.[85] A three-cent surcharge above inflation increased the 1 oz (28 g) rate to 49¢ in January 2014, but this was approved by the commission for two years only.[86] As of July 13, 2025 the cost of postage increased to 78 cents for first class mail.[87]

Reform proposals and delivery changes

[edit]

During the Obama administration

[edit]
A USPS Mailbox

Comprehensive reform packages considered in the 113th Congress include S.1486[88] and H.R.2748.[89] These include the efficiency measure, supported by Postmaster General Patrick Donahoe[90] of ending door-to-door delivery of mail for some or most of the 35 million addresses that currently receive it, replacing that with either curbside boxes or nearby "cluster boxes". This would save $4.5 billion per year out of the $30 billion delivery budget; door-to-door city delivery costs annually on average $353 per stop, curbside $224, and cluster box $160 (and for rural delivery, $278, $176, and $126, respectively).[91][92]

S.1486,[93] also with the support of Postmaster General Donahoe,[94] would also allow the USPS to ship alcohol in compliance with state law, from manufacturers to recipients with ID to show they are over 21. This is projected to raise approximately $50 million per year.[94] (Shipping alcoholic beverages is currently illegal under 18 U.S.C. § 1716(f).)

In 2014, the Postal Service was requesting reforms to workers' compensation, moving from a pension to defined contribution retirement savings plan, and paying senior retiree health care costs out of Medicare funds, as is done for private-sector workers.[95]

During the first Trump administration

[edit]

As part of a June 2018 governmental reorganization plan, the Donald Trump administration proposed turning USPS into "a private postal operator" which could save costs through measures like delivering mail fewer days per week, or delivering to central locations instead of door to door. There was strong bipartisan opposition to the idea in Congress.[96]

In April 2020, Congress approved a $10 billion loan from the Treasury to the post office. According to The Washington Post, officials under Treasury Secretary Steven Mnuchin suggested using the loan as leverage to give the Treasury Department more influence on USPS operations, including making them raise their charges for package deliveries, a change long sought by President Trump.[97]

In May 2020, the Board of Governors of the United States Postal Service appointed Louis DeJoy as Postmaster General. DeJoy was the first appointee in two decades to come from outside the postal service. Prior to the appointment, he was the founder and CEO of the logistics and freight company New Breed Logistics and was a major Republican Party donor and fundraiser for Donald Trump.[98]

DeJoy immediately began taking measures to reduce costs, such as banning overtime and extra trips to deliver mail.[99][100][101] While DeJoy admitted that these measures were causing delays in mail delivery, he said they would eventually improve service.[102]

More than 600 high-speed mail sorting machines were scheduled to be dismantled and removed from postal facilities,[103] raising concerns that mailed ballots for the November 3 election might not reach election offices on time.[104]

Mail collection boxes were removed from the streets in many cities; after photos of boxes being removed were spread on social media, a postal service spokesman said they were being moved to higher traffic areas but that the removals would stop until after the election.[105]

The inspector general for the postal service opened an investigation into the recent changes.[106] On August 16 the House of Representatives was called back from its summer recess to consider a bill rolling back all of the changes.[107]

On August 18, 2020, after days of heavy criticism and the day after lawsuits against the Postal Service and DeJoy personally were filed in federal court by several individuals,[108] DeJoy announced that he would roll back all the changes until after the November election. He said he would reinstate overtime hours, roll back service reductions, and halt the removal of mail-sorting machines and collection boxes.[109] However, 95 percent of the mail sorting machines that were planned for removal had already been removed,[110] and according to House Speaker Nancy Pelosi, DeJoy said he has no intention of replacing them or the mail collection boxes.[111]

On December 27, 2020, the Consolidated Appropriations Act of 2021 forgave the previous $10 billion loan.[112]

Coronavirus pandemic and voting by mail

[edit]

Voting by mail has become an increasingly common practice in the United States, with 25% of voters nationwide mailing their ballots in 2016 and 2018. The coronavirus pandemic of 2020 was predicted to cause a large increase in mail voting because of the possible danger of congregating at polling places.[113] For the 2020 election, a state-by-state analysis concluded that 76% of Americans were eligible to vote by mail in 2020, a record number. The analysis predicted that 80 million ballots could be cast by mail in 2020 – more than double the number in 2016.[114] The Postal Service sent letters to 46 states in July 2020, warning that the service might not be able to meet each state's deadlines for requesting and casting last-minute absentee ballots.[115] The House of Representatives voted to include an emergency grant of $25 billion to the post office to facilitate the predicted flood of mail ballots,[116] but the bill never reached the Senate floor for a vote.[117][118]

A March 2021 report from the Postal Service's inspector general found that the vast majority of mail-in ballots and registration materials in the 2020 election were delivered to the relevant authorities on time.[119][120] The Postal Service handled approximately 135 million pieces of election-related mail between September 1 and November 3, delivering 97.9% of ballots from voters to election officials within three days, and 99.89% of ballots within seven days.[119][121]

COVID-19 test kits to Americans

[edit]

Postmaster General DeJoy helped the USPS deliver approximately 380 million home test kits from January 2022 through May 2022.[122][123] As of March 2024, when the program concluded, the USPS had delivered over 1.8 billion free COVID-19 test kits.[124]

In September 2024, the distribution of free at-home COVID-19 tests was re-started.[125][126]

Delivering for America reform plan

[edit]

In March 2021, the Postal Service launched a 10-year reform plan called Delivering for America, intended to improve the agency's financial stability, service reliability, and operational efficiency.[127][128] The plan includes $40 billion in investments meant to improve USPS technology and facilities.[129] In April 2022, the Postal Service Reform Act of 2022 was signed into law.[122] It lifted financial burdens placed on the USPS by the 2006 Postal Accountability and Enhancement Act.[130]

As part of Delivering for America, the Postal Service has introduced three new parcel shipping offerings: USPS Connect in June 2022,[131] USPS Ground Advantage in July 2023,[132] and Priority Next Day in March 2025.[133] It has also installed 348 new package sorting machines within its facilities.[129] As of September 2023, the Postal Service is able to process approximately 70 million packages per day,[129] up from 53 million in 2021,[134] and 60 million in 2022.[135]

The USPS announced in July 2022 that it would be building 60 new regional processing and distribution centers in order to replace smaller, redundant facilities.[136] One of the first of these facilities, a 700,000-square-foot building in Gastonia, North Carolina, opened in November 2023.[137]

In an effort to stabilize its workforce, the Postal Service converted 150,000 of its pre-career workers into full-time employees between October 2020 and September 2023.[129][138]

Delivering for America has attempted to stabilize the Postal Service's finances by adjusting service times for mail and package delivery.[139] In 2020, the Postal Regulatory Commission gave the Postal Service increased authority to raise postage rates in order to cover its operating costs.[140] Between 2021 and 2023, USPS has raised the postage rate four times.[141] In May 2023, USPS reported a $2.5 billion loss over the year's first quarter, with approximately $500 million of that figure related to costs within the agency's control.[142] It also reported that its projected ten-year losses had been reduced from $160 billion to $70 billion.[143]

In February 2025, the Postal Service announced new service standards for first-class mail, periodicals, marketing mail, and package services. These new standards, which include allowing postal workers to travel a greater distance for deliveries and replacing three-digit regional zip code add-ons with five-digit ones, are intended to improve delivery network reliability and save the agency approximately $36 billion between 2025 and 2035.[144][145]

Governance and organization

[edit]

The Board of Governors of the United States Postal Service sets policy, procedure, and postal rates for services rendered. It has a similar role to a corporate board of directors. Of the eleven members of the Board, nine are appointed by the president and confirmed by the U.S. Senate (see 39 U.S.C. § 202). The nine appointed members then select the United States postmaster general, who serves as the board's tenth member, and who oversees the day-to-day activities of the service as chief executive officer (see 39 U.S.C. §§ 202203). The ten-member board then nominates a deputy postmaster general, who acts as chief operating officer, to the eleventh and last remaining open seat.

The independent Postal Regulatory Commission (formerly the Postal Rate Commission) is also controlled by appointees of the president confirmed by the Senate. It oversees postal rates and related concerns, having the authority to approve or reject USPS proposals.

The USPS is often mistaken for a state-owned enterprise or government-owned corporation (e.g., Amtrak) because it operates much like a business. It is, however, an "establishment of the executive branch of the Government of the United States", (39 U.S.C. § 201) as it is controlled by presidential appointees and the postmaster general. As a government agency, it has many special privileges, including sovereign immunity, eminent domain powers, powers to negotiate postal treaties with foreign nations, and an exclusive legal right to deliver first-class and third-class mail. Indeed, in 2004, the U.S. Supreme Court ruled in a unanimous decision "The Postal Service is not subject to antitrust liability. In both form and function, it is not a separate antitrust person from the United States but is part of the Government, and so is not controlled by the antitrust laws" such as the Sherman Antitrust Act of 1890.[146] Unlike a state-owned enterprise, the USPS lacks a transparent ownership structure and is not subject to standard rules and norms that apply to commercial entities. The USPS also lacks commercial discretion and control.[147]

18 U.S.C. § 1725 creates a statutory monopoly on access to letter boxes by authorizing the federal government to impose fines against anyone who "knowingly and willfully deposits any mailable matter" in such letter boxes "on which no postage has been paid". The U.S. Supreme Court has upheld this monopoly against a First Amendment freedom of speech challenge; it thus remains illegal in the U.S. for anyone, other than the employees and agents of the USPS, to deliver mail pieces to letter boxes marked "U.S. Mail".[148]

The Postal Service also has a Mailers' Technical Advisory Committee and local Postal Customer Councils, which are advisory and primarily involve business customers.[149]

The USPS assigns city names to various postal addresses; these assignments do not always correspond with municipal boundaries. Mailing address names may stay the same even if city boundaries change.[150]

Funding and privatization proposals

[edit]

Since the Postal Reorganization Act came into effect in 1971, the USPS has been mandated to be self-financing and rely solely on revenue from stamps and package deliveries to support itself.[151][152] In 1982, postal stamps were changed to be categorized as products rather than a form of taxation, and since then, the Postal Service has no longer received taxpayer funding.[151]

Since the 1990s, Republicans have been discussing the idea of privatizing the U.S. Postal Service.[153] In 2017, President Trump criticized the postal service's relationship with Amazon.[154] Amazon maintains that the Postal Service makes a profit from their contract.[155] Trump's administration proposed turning USPS into "a private postal operator" as part of a June 2018 governmental reorganization plan, although there was strong bipartisan opposition to the idea in Congress.[96]

Universal service obligation and monopoly status

[edit]
[edit]

Article I, section 8, Clause 7 of the U.S. Constitution grants Congress the power to establish post offices and post roads,[156] which has been interpreted as a de facto Congressional monopoly over the delivery of first-class residential mail—which has been defined as non-urgent residential letters (not packages). Accordingly, no other system for delivering first-class residential mail—public or private—has been tolerated, absent Congress's consent. The mission of the Postal Service is to provide the American public with trusted universal postal service. While not explicitly defined, the Postal Service's universal service obligation (USO) is broadly outlined in statute and includes multiple dimensions: geographic scope, range of products, access to services and facilities, delivery frequency, affordable and uniform pricing, service quality, and security of the mail. While other carriers may claim to voluntarily provide delivery on a broad basis, the Postal Service is the only carrier with a legal obligation to provide all the various aspects of universal service.[157]

Proponents of universal service principles claim that since any obligation must be matched by the financial capability to meet that obligation, the postal monopoly was put in place as a funding mechanism for the USO, and it has been in place for over a hundred years. It consists of two parts: the Private Express Statutes (PES) and the mailbox access rule. The PES refer to the Postal Service's monopoly on the delivery of letters, and the mailbox rule refers to the Postal Service's exclusive access to customer mailboxes.[158]

Proponents of universal service principles further claim that eliminating or reducing the PES or mailbox rule would affect the ability of the Postal Service to provide affordable universal service. If, for example, the PES and the mailbox rule were to be eliminated, and the USO maintained, then either billions of dollars in tax revenues or some other source of funding would have to be found.[158]

Some proponents[by whom?][159] of universal service principles suggest that private communications that are protected by the veil of government promote the exchange of free ideas and communications. This separates private communications from the ability of a private for-profit or non-profit organization to corrupt. Security for the individual is in this way protected by the United States Post Office, maintaining confidentiality and anonymity, as well as government employees being much less likely to be instructed by superiors to engage in nefarious spying.[citation needed] It is seen by some[by whom?] as a dangerous step to extract the universal service principle from the post office, as the untainted nature of private communications is preserved as assurance of the protection of individual freedom of privacy.[160]

However, as the recent notice of a termination of mail service to residents of the Frank Church–River of No Return Wilderness indicates, mail service has been contracted to private firms such as Arnold Aviation for many decades. KTVB-TV reported:[161]

2008 report on universal postal service and the postal monopoly

[edit]

The Postal Act of 2006 required the Postal Regulatory Commission (PRC) to submit a report to the president and Congress on universal postal service and the postal monopoly in December 2008. The report must include any recommended changes. The Postal Service report supports the requirement that the PRC is to consult with and solicit written comments from the Postal Service. In addition, the Government Accountability Office was required to evaluate broader business model issues by 2011.

On October 15, 2008, the Postal Service submitted a report[6] to the PRC on its position related to the Universal Service Obligation (USO). It said no changes to the USO and restriction on mailbox access were necessary at that time, but increased regulatory flexibility was required to ensure affordable universal service in the future.

In February 2013, the Postal Service announced that starting August 2013, Saturday delivery would be discontinued. Congress traditionally includes a provision in an annual continuing resolution that requires six-day delivery; it did so again in March 2013, and the Postal Service was forced to continue Saturday delivery.[162]

Monopoly and competition

[edit]

Due to the postal monopoly, neither FedEx nor United Parcel Service (UPS) are allowed to deliver non-urgent letters, and may not directly ship to U.S. Mail boxes at residential and commercial destinations. However, both companies have transit agreements with the USPS in which an item can be dropped off with either FedEx or UPS who will then provide shipment up to the destination post office serving the intended recipient where it will be transferred for delivery to the U.S. Mail destination, including Post Office Box destinations.[163][164] These services also deliver packages which are larger and heavier than USPS will accept.

Although USPS and UPS are direct competitors, USPS contracts with UPS for air transport of 2–3 Day Priority Mail[165] and Priority Mail Express (typically delivered overnight).[166]

Law enforcement agencies

[edit]

Under the Mail Cover Program USPS photographs the front and back of every piece of U.S. mail as part of the sorting process, enabling law enforcement to obtain address information and images of the outsides of mail as part of an investigation without the need for a warrant.[167]

The Food and Drug Administration inspects packages for illegal drug shipments.

Postal Inspection Service

[edit]

The United States Postal Inspection Service (USPIS) is one of the oldest law enforcement agencies in the U.S. Founded by Benjamin Franklin on August 7, 1775, its mission is to protect the Postal Service, its employees, and its customers from crime and protect the nation's mail system from criminal misuse.[168]

Postal Inspectors enforce over 200 federal laws providing for the protection of mail in investigations of crimes that may adversely affect or fraudulently use the U.S. Mail, the postal system or postal employees.

The USPIS has the power to enforce the USPS monopoly by conducting search and seizure raids on entities they suspect of sending non-urgent mail through overnight delivery competitors. According to the American Enterprise Institute, a private conservative think tank, the USPIS raided Equifax offices in 1993 to ascertain if the mail they were sending through FedEx was truly "extremely urgent". It was found that the mail was not, and Equifax was fined $30,000.[169][170]

The PIS oversees the activities of the Postal Police Force who patrol and secure major postal facilities in the United States.[171]

Office of Inspector General

[edit]

The United States Postal Service Office of Inspector General (OIG) was authorized by law in 1996. Prior to the 1996 legislation, the Postal Inspection Service performed the duties of the OIG. The inspector general, who is independent of postal management, is appointed by and reports directly to the nine presidentially appointed, Senateconfirmed members of the Board of Governors of the United States Postal Service. OIG s primary purpose is to prevent, detect and report fraud, waste and program abuse, and promote efficiency. The OIG has "oversight" responsibility for all activities of the Postal Inspection Service.

How delivery services work

[edit]

Elements of addressing and preparing domestic mail

[edit]

All mailable articles (e.g., letters, flats, machinable parcels, irregular parcels, etc.) shipped within the United States must comply with an array of standards published in the USPS Domestic Mail Manual (DMM).[172] Before addressing the mailpiece, one must first comply with the various mailability standards relating to attributes of the actual mailpiece such as: minimum/maximum dimensions[173] and weight, acceptable mailing containers, proper mailpiece sealing/closure, utilization of various markings, and restrictions relating to various hazardous (e.g., explosives, flammables, etc.) and restricted (e.g., cigarettes, smokeless tobacco, etc.) materials, as well as others articulated in § 601 of the DMM.[174]

Undeliverable mail that cannot be readily returned, including mail without a return address, is treated as dead mail at the Mail Recovery Center in Atlanta, Georgia.[175]

Sticker promoting ZIP Code use

The USPS maintains a list of proper abbreviations.[176]

The format of a return address is similar. Though some style manuals recommend using a comma between the city and state name when typesetting addresses in other contexts, for optimal automatic character recognition, the Post Office does not recommend this when addressing mail. The official recommendation is to use all upper case block letters with proper formats and abbreviations, and leave out all punctuation except for the hyphen in the ZIP+4 code. If the address is unusually formatted or illegible enough, it will require hand-processing, delaying that particular item. The USPS publishes the entirety of their postal addressing standards.[177]

Postal address verification tools and services are offered by the USPS and third-party companies to help ensure mail is deliverable by fixing formatting, appending information such as ZIP Code and validating the address is a valid delivery point. Customers can look up ZIP Codes and verify addresses using USPS Web Tools available on the official USPS website and Facebook page, as well as on third-party sites.[178]

Delivery Point Validation

[edit]

Delivery Point Validation (DPV) provides the highest level of address accuracy checking. In a DPV process, the address is checked against the AMS data file to ensure that it exists as an active delivery point.[179] The USPS provides DPV on their website as part of the ZIP Code Lookup tool; there are also companies that offer services to perform DPV in bulk.

Paying postage

[edit]

Postage can be paid via:[180]

  • Stamps purchased online at usps.com, at a post office, from a stamp vending machine or "Automated Postal Center" which can also handle packages, or from a third party (such as a grocery store)
  • Pre-cancelled stamps for bulk mailings[181]
  • Postal meter
  • Prepaid envelope
  • Shipping label purchased online and printed by the customer on standard paper (e.g., with Click-N-Ship, or via a third-party such as PayPal or Amazon shipping)

All unused U.S. postage stamps issued since 1861 are still valid as postage at their indicated value. Non-denominated stamps and those with values denominated by a letter are "valid at the original prices of issue".[182] Additionally, Forever Stamps have been sold since 2007, which will always be valid for First-Class Mail up to 1 ounce (28 g), regardless of rate changes.[183] In 2011, all first-class one ounce stamps, except for those sold in select coil sizes, "became forever stamps".[184]

The cost of mailing a 1 oz (28 g) First-Class letter increased to 73 cents on July 14, 2024.[185][186]

Postage meters

[edit]

A postage meter is a mechanical device used to create and apply physical evidence of postage (or franking) to mailed matter. Postage meters are regulated by a country's postal authority; for example, in the United States, the United States Postal Service specifies the rules for the creation, support, and use of postage meters. A postage meter imprints an amount of postage, functioning as a postage stamp, a cancellation and a dated postmark all in one. The meter stamp serves as proof of payment and eliminates the need for adhesive stamps.

PC Postage

[edit]

In addition to using standard stamps, postage can now be printed in the form of an electronic stamp, or e-stamp, from a personal computer using a system called Information Based Indicia. This online PC Postage method relies upon application software on the customer's computer contacting a postal security device at the office of the postal service.[187]

Other electronic postage payment methods

[edit]

International services

[edit]
Packages awaiting inspection at the International Mail Facility in JFK airport

In May 2007, the USPS[188] restructured international service names to correspond with domestic shipping options. Formerly, USPS International services[189] were categorized as Airmail (Letter Post), Economy (Surface) Parcel Post, Airmail Parcel Post, Global Priority, Global Express, and Global Express Guaranteed Mail. The former Airmail (Letter Post) is now First-Class Mail International,[190][191] and includes small packages weighing up to four pounds (1.8 kg). Economy Parcel Post was discontinued for international service, while Airmail Parcel Post was replaced by Priority Mail International. Priority Mail International Flat-Rate packaging in various sizes was introduced, with the same conditions of service previously used for Global Priority. Global Express is now Express Mail International, while Global Express Guaranteed was unchanged. All international package services come with USPS tracking up until the point it leaves the US, with further tracking availability dependent on the destination country.[192] First-Class Mail letters and flats are not trackable. On September 29th, 2024, Global Express Guaranteed service was suspended to all destinations.[193]

One of the major changes in the updated naming and services definitions is that USPS-supplied mailing boxes for Priority and Express mail are allowed for international use. These services are offered to ship letters and packages to almost every country and territory on the globe. The USPS contracts with various commercial and freight airlines to transport mail and packages to their destination. The Fly America act of 1974 mandates that the postal service must use a US Flag Carrier whenever one is available, regardless of cost. Exceptions apply for destinations not served by US carriers.[194]

An m-bag

The USPS provides an M-bag[195] service for international shipment of printed matter;[196] previously surface M-bags existed, but with the 2007 elimination of surface mail, only airmail M-bags remain.[197] The term "M-bag" is not expanded in USPS publications; M-bags are simply defined as "direct sacks of printed matter ... sent to a single foreign addressee at a single address";[196] however, the term is sometimes referred to informally as "media bag", as the bag can also contain "discs, tapes, and cassettes", in addition to books, for which the usual umbrella term is "media"; some also refer to them as "mail bags".

The Department of Defense and the USPS jointly operate a postal system to deliver mail for the military; this is known as the Army Post Office (for Army and Air Force postal facilities) and the Fleet Post Office (for Navy, Marine Corps, and Coast Guard postal facilities).[198] Military mail is billed at domestic rates when being sent from the United States to a military outpost, and is free when sent by deployed military personnel. The overseas logistics are handled by the Military Postal Service Agency in the Department of Defense.[199] Outside of forward areas and active operations, military mail service speeds vary greatly based on location. First-Class takes 7–18 days, Priority 7-18 days, Parcel Select and Media Mail 18-45 days, and Priority Mail Express military takes 3 days, though it is only available to select European, North American, and Pacific posts.[200]

Three independent countries with a Compact of Free Association with the U.S. (Palau, the Marshall Islands, and the Federated States of Micronesia) have a special relationship with the United States Postal Service:

  • Each associated state maintains its own government-run mail service for delivery to and pickup from retail customers.[201][202][203]
  • The associated states are integrated into the USPS addressing and ZIP Code system.
  • The USPS is responsible for transporting mail between the United States and the associated states,[201] and between the individual states of the Federated States of Micronesia.[203]
  • The associated states synchronize postal services and rates with the USPS.
  • The USPS treats mail to and from the associated states as domestic mail.[204] Incoming mail does require customs declarations because, like some U.S. territories, the associated states are outside the main customs territory of the United States.[205]

Discontinuation of international surface mail

[edit]

In 2007, the US Postal Service discontinued its outbound international surface mail ("sea mail") service,[206] mainly because of increased costs. Returned undeliverable surface parcels had become an expensive problem for the USPS, since it was often required to take such parcels back.[207]

Domestic surface mail (now "USPS Ground Advantage") remains available. Surface mail transportation also remains available to certain overseas military and diplomatic posts.

Alternatives to international surface mail include:

  • International Surface Air Lift (ISAL). The service includes neither tracking nor insurance;[208] but it may be possible to purchase shipping insurance from a third-party company. This service uses air transportation to leave the US but is then entered into the destination country's surface mail network.
  • USPS Commercial ePacket. The service is trackable.
  • Ordinary first-class international airmail.

Senders can access the International Surface Air Lift and ePacket services through postal wholesalers. Some examples of such wholesalers include:

  • Asendia USA (accessible through the Shippo website to users who have an Asendia account),[209]
  • Globegistics (now owned by Asendia), and
  • APC Postal Logistics.

If a sender sends an ISAL mailing directly through the USPS (without a wholesaler as an intermediary), the minimum weight is 50 pounds per mailing.[210]

Sorting and delivery process

[edit]
Mail flow through national infrastructure, as of 2005

Processing of standard sized envelopes and cards is highly automated, including reading of handwritten addresses. Mail from individual customers and public USPS mailboxes is collected by letter carriers into plastic tubs, which are taken to one of approximately 251 Processing and Distribution Centers (P&DCs) across the United States. Each P&DC sorts mail for a given region (typically with a radius of around 200 miles (320 km)) and connects with the national network for interregional mail.[211]

Since the late 20th century, the USPS has been reducing point-to-point links in favor of a spoke-hub distribution paradigm, with sorting work tightly concentrated at the hubs. During the 2010s, the USPS consolidated mail sorting for large regions into the P&DCs on the basis that most mail is addressed to faraway destinations,[212] but for cities at the edge of a P&DC's region, this means all locally addressed mail must travel long distances (that is, to and from the P&DC for sorting) to reach nearby addresses.[213]

At the P&DC, mail is emptied into hampers which are automatically dumped into a Dual Pass Rough Cull System (DPRCS). As mail travels through the DPRCS, large items, such as packages and mail bundles, are removed from the stream. As the remaining mail enters the first machine for processing standard mail, the Advanced Facer-Canceler System (AFCS), pieces that passed through the DPRCS but do not conform to physical dimensions for processing in the AFCS (e.g., large envelopes or overstuffed standard envelopes) are automatically diverted from the stream. Mail removed from the DPRCS and AFCS is manually processed or sent to parcel sorting machines.

In contrast to the previous system, which canceled and postmarked the upper right corner of the envelope, thereby missing any stamps which were inappropriately placed, the AFCS locates indicia (stamp or metered postage mark) regardless of the orientation of the mailpiece as it enters the machine, and cancels it by applying a postmark. Detection of indicia enables the AFCS to determine the orientation of each mailpiece and sort it accordingly. The AFCS rotates and flips over mailpieces as needed, so all mail is sorted right-side up and faced in the same direction in each output bin.

Mail is sorted by the AFCS into three categories: mail already affixed with a bar code and addressed (such as business reply envelopes and cards); mail with machine printed (typed) addresses; and mail with handwritten addresses.

Mail with typed addresses goes to a Multiline Optical Character Reader (MLOCR) which reads the ZIP Code and address information and prints the appropriate bar code onto the envelope (formerly POSTNET, later Intelligent Mail). Mail with handwritten addresses and illegible typed addresses is diverted from the mailstream to the Remote Bar Coding System (RBCS). Images of such mailpieces are transmitted through RBCS to the Remote Encoding Center, where humans (data entry clerks) read each image and type in the most likely address. Each mailpiece held for RBCS processing is sprayed with an ID Tag, a fluorescent bar code. When address data comes back from the Remote Encoding Center, RBCS uses the ID Tag bar code to identify the corresponding mailpiece and prints the appropriate bar code, then returns the mailpiece to the mailstream.

Processed mail is imaged by the Mail Isolation Control and Tracking (MICT) system to allow easier tracking of hazardous substances. Images are taken at more than 200 mail processing centers, and are destroyed after being retained for 30 days.[214]

If a customer has filed a change of address card and his or her mail is detected in the mailstream with the old address, the mailpiece is sent to a machine that automatically connects to a Computerized Forwarding System database to determine the new address. If this address is found, the machine will paste a label over the former address with the current address and the appropriate bar code. The mail is returned to the mailstream to be forwarded to the addressee's new location.

Mail with addresses that cannot be read and bar coded by any of the foregoing automated systems is separated for human intervention. Local postal workers can read the address and manually code and sort mail according to the ZIP Code on the article. If the address still cannot be read, mail is either returned to the sender (First-Class Mail with a valid return address) or is sent to the Mail Recovery Center in Atlanta, Georgia (formerly known as the dead letter office). At this office, the mail is opened to try to find an address to forward to. If an address is found, the contents are resealed and delivered. Otherwise, the items are held for 90 days in case of inquiry by the customer; if they are not claimed, they are either destroyed or auctioned off at the monthly Postal Service Unclaimed Parcel auction to raise money for the service.

Once the mail is bar coded, it is automatically sorted by a Delivery Bar Code Sorter (DBCS) that reads the bar code, identifies the destination of the mailpiece, and sends it to an appropriate tray that corresponds to the next segment of its journey.

There are necessarily two P&DCs for every domestic mailpiece which correspond to the regions in which the sender and recipient are located. The USPS calls these, respectively, the origin and destination P&DCs.[215] Mail for which they are the same (because the senders are located in the same region as the recipients) is either trucked to the appropriate local post office, or kept in the building for carrier routes served directly from the P&DC itself. Out-of-region mail is trucked to the closest airport and then flown, usually as baggage on commercial airlines, to the airport nearest the destination station. At the destination P&DC, mail is again read by a DBCS which sorts items to local post offices; this includes grouping mailpieces by individual letter-carrier route.

At the carrier route level, 95% of letters arrive pre-sorted;[211] the remaining mail must be sorted by hand. In 2009, the Post Office was working to increase the percentage of automatically sorted mail, including a pilot program to sort "flats".[216]

UPS is the primary air transport supplier to USPS for Priority and Express Mail. Priority Mail and Express Mail are transported from origin processing centers to the closest UPS-served airport, where they are handed off to UPS. UPS then flies them to the destination airport and hands them back to USPS for transport to the local post office and delivery.[217]

After consolidating sorting work into the P&DCs, the USPS in August 2022 initiated a pilot program to consolidate delivery work into Sorting and Delivery Centers (S&DCs). As of 2022, the USPS was still running "delivery units" out of most of its post offices, meaning that most carrier routes were based at post offices and there were dozens of delivery units in each metropolitan area. The USPS planned to merge many delivery units in each metropolitan area into S&DCs, which implied that many letter carriers would have to endure longer commutes to S&DCs and drive longer delivery routes, while many post offices would be reduced to retail stores with no back-end mail processing capability on site. However, the USPS hoped to save money on the trucking fleet moving mail between its facilities.[218] A 2023 audit by the USPS inspector general found that the facilities selected to serve as the initial S&DCs were operating smoothly and functioning as expected, but criticized the USPS for immediately consolidating workers into the S&DCs before they had been upgraded with adequate amenities like restrooms, break rooms, and locker rooms appropriately sized for such large numbers of employees.[219]

Types of postal facilities

[edit]
Historic main post office in Tomah, Wisconsin
A typical post office station in the Spring Branch area of Houston, Texas
A combined Post Office, Customs House, and Federal Court House in Galveston, Texas
Floating post office, Halibut Cove, Alaska
Wheeler Springs, CA, was home to the smallest post office in the U.S.

Although its retail postal facilities are called post offices in regular speech, the USPS recognizes several types of postal facilities, including the following:

  • A main post office (formerly known as a general post office) is the primary postal facility in a community.
  • A station or post office station is a postal facility that is not the main post office, but that is within the corporate limits of the community.
  • A branch or post office branch is a postal facility that is not the main post office and that is outside the corporate limits of the community.
  • A classified unit is a station or branch operated by USPS employees in a facility owned or leased by the USPS.
  • A contract postal unit (or CPU) is a station or branch operated by a contractor, typically in a store or other place of business.[220]
  • A community post office (or CPO) is a contract postal unit providing services in a small community in which other types of post office facilities have been discontinued.
  • An approved shipper is an independent shipping business licensed to use certain USPS branding and signage, but which does not receive any financial compensation from USPS and may opt to charge higher rates for postage. Approved Shippers may also accept packages for other carriers such as UPS or FedEx.[221]
  • A finance unit is a station or branch that provides window services and accepts mail, but does not provide delivery.
  • A village post office (VPO) is an entity such as a local business or government center that provides postal services through a contract with the USPS. First introduced in 2011 as an integral part of the USPS plan to close low volume post offices, village post offices will fill the role of the post office within a ZIP Code.[222]
  • A processing and distribution center (P&DC, or processing and distribution facility, formerly known as a General Mail Facility) is a central mail facility that processes and dispatches incoming and outgoing mail to and from a designated service area (251 nationwide).[211][223]
  • A sectional center facility (SCF) is a P&DC for a designated geographical area defined by one or more three-digit ZIP Code prefixes.
  • An international service center (ISC) is an international mail processing facility. There are four such USPS facilities in the continental United States, located in Chicago, New York, Miami, and Los Angeles.[224]
  • A network distribution center (NDC), formerly known as a bulk mail center (BMC), was a central mail facility that processed bulk rate parcels as the hub in a hub and spoke network. The NDC network was dismantled in 2022-2023 as part of modernization efforts, with NDC duties being returned to the P&DC network. Each of the 20 NDCs is being repurposed to serve the new network.
  • An auxiliary sorting facility (ASF) is a central mail facility that processes bulk rate parcels as spokes in a hub and spoke network.
  • A remote encoding center (REC) is a facility at which clerks receive images of problem mail pieces (those with hard-to-read addresses, etc.) via secure Internet-type feeds and manually type the addresses they can decipher, using a special encoding protocol. The mail pieces are then sprayed with the correct addresses or are sorted for further handling according to the instructions given via encoding. The total number of RECs is down from 55 in 1998 to just 1 center in December 2016. The last REC is in Salt Lake City, Utah.[225]
  • A remotely managed post office (RMPO) is an office with part-time window hours that is staffed by a Postal Service employee but managed remotely by a postmaster at a larger office.
  • A part-time post office (PTPO) is a Post Office that offers part-time window service hours, is staffed by a Postal Service employee, and reports to a district office.[226]

While common usage refers to all types of postal facilities as "substations", the USPS Glossary of Postal Terms does not define or even list that word.[220] Post Offices often share facilities with other governmental organizations located within a city's central business district. In those locations, often courthouses and federal buildings, the building is owned by the General Services Administration while the U.S. Postal Services operates as a tenant.[227] The USPS retail system has approximately 36,000 post offices, stations, and branches.[228]

Self-Service Kiosks

[edit]
A 24-hour Automated Postal Center kiosk inside the Webster, Texas main post office

In 2004, the USPS began deploying Automated Postal Centers (APCs) at USPS locations.[229] In the early 2010s, the USPS renamed APCs to Self-Service Kiosks (SSKs).[230] Self-Service Kiosks are automated and are able to weigh and mail parcels, letters and flats, renew postal office boxes, and print postage.[231]

Evolutionary Network Development (END) program

[edit]

In February 2006, the USPS announced that they plan to replace the nine existing facility-types with five processing facility-types:[232]

  • Regional Distribution Centers (RDCs), which will process all classes of parcels and bundles and serve as Surface Transfer Centers;
  • Local Processing Centers (LPCs), which will process single-piece letters and flats and cancel mail;
  • Destination Processing Centers (DPC), sort the mail for individual letter-carrier route;
  • Airport Transfer Centers (ATCs), which will serve as transfer points only; and
  • Remote Encoding Centers (RECs).

Over a period of years, these facilities are expected to replace Processing & Distribution Centers, Customer Service Facilities, Bulk Mail Centers, Logistic and Distribution Centers, annexes, the Hub and Spoke Program, Air Mail Centers, and International Service Centers.

The changes are a result of the declining volumes of single-piece First-Class Mail, population shifts, the increase in drop shipments by advertising mailers at destinating postal facilities, advancements in equipment and technology, redundancies in the existing network, and the need for operational flexibility.

The program was ended in early 2007 after an analysis revealed that the significant amount of capital investment required to implement the END network concept would not generate the benefits originally anticipated.[233]

Airline and rail division

[edit]
A former United States Postal Service Boeing 727-200 aircraft at Miami International Airport in 1999

The United States Postal Service does not directly own or operate any aircraft or trains, although both were formerly operated. The mail and packages are flown on airlines with which the Postal Service has a contractual agreement. The contracts change periodically. Contract airlines have included: UPS, FedEx Express, American Airlines, United Airlines, Delta Air Lines, Kalitta Air, AmeriJet, Amazon, Northern Air Cargo, and others.

The last air delivery route in the continental U.S., to residents in the Frank Church–River of No Return Wilderness, was scheduled to be ended in June 2009. The weekly bush plane route, contracted out to an air taxi company, had in its final year an annual cost of $46,000, or $2400/year per residence, over ten times the average cost of delivering mail to a residence in the United States.[234] This decision has been reversed by the U.S. postmaster general.[235]

Parcel forwarding and private interchange

[edit]

Private US parcel forwarding or US mail forwarding companies focusing on personal shopper, relocation, Ex-pat and mail box services often interface with the United States Postal Service for transporting of mail and packages for their customers.[236]

Delivery timing

[edit]
USPS contractor-driven semi-trailer truck seen near Mendota, California
1998 United States Postal Service Ford Windstar, showing the larger driver's side door

Delivery days

[edit]

From 1810, mail was delivered seven days a week. In 1828, local religious leaders noticed a decline in Sunday-morning church attendance because of local post offices' doubling as gathering places. These leaders appealed to the government to intervene and close post offices on Sundays. The government, however, declined, and mail was delivered seven days a week until 1912.[237][238] Since then, U.S. Mail (with the exception of Express Mail)[239] has not been delivered on Sunday.

Saturday delivery was temporarily suspended in April 1957, because of lack of funds, but quickly restored.[240][241]

Budget problems prompted consideration of dropping Saturday delivery starting around 2009. This culminated in a 2013 announcement that regular mail services would be cut to five days a week, which was reversed by Congress before it could take effect. (See the section Revenue decline and planned cuts.)

Direct delivery vs. customer pickup

[edit]

Originally, mail was not delivered to homes and businesses, but to post offices. In 1863, "city delivery" began in urban areas with enough customers to make this economical. This required streets to be named, houses to be numbered, with sidewalks and lighting provided, and these street addresses to be added to envelopes.[242] The number of routes served expanded over time. In 1891, the first experiments with Rural Free Delivery began in less densely populated areas.

To compensate for high mail volume and slow long-distance transportation which saw mail arrive at post offices throughout the day, deliveries were made multiple times a day. This ranged from twice for residential areas to up to seven times for the central business district of Brooklyn, New York.[243] In the late 19th century, mail boxes were encouraged, saving carriers the time it took to deliver directly to the addressee in person. During the 1910s and 1920s, they were phased in as a requirement for service.[242] In the 1940s, multiple daily deliveries began to be reduced, especially on Saturdays. By 1990, the last twice-daily deliveries in New York City were eliminated.

Since then, mail is delivered once a day to most private homes and businesses. The USPS still distinguishes between city delivery (where carriers generally walk and deliver to mailboxes hung on exterior walls or porches, or to commercial reception areas) and rural delivery (where carriers generally drive).[244] With "curbside delivery", mailboxes are at the ends of driveways, on the nearest convenient road. "Central point delivery" is used in some locations, where several nearby residences share a "cluster" of individual mailboxes in a single housing.

Some customers choose to use post office boxes for an additional fee, for privacy or convenience. This provides a locked box at the post office to which mail is addressed and delivered (usually earlier in the day than home delivery). Customers in less densely populated areas where there is no city delivery and who do not qualify for rural delivery may receive mail only through post office boxes. High-volume business customers can also arrange for special pick-up.[245][246]

Another option is the old-style general delivery, for people who have neither post office boxes nor street addresses. Mail is held at the post office until they present identification and pick it up.

Some customers receive free post office boxes if the USPS declines to provide door-to-door delivery to their location or a nearby box.[247] People with medical problems can request door-to-door delivery.[248] Homeless people are also eligible for post office boxes at the discretion of the local postmaster, or can use general delivery.[249]

Special delivery

[edit]

From 1885 to 1997, a service called special delivery was available, which caused a separate delivery to the final location earlier in the day than the usual daily rounds.

Same-day trials

[edit]

In December 2012, the USPS began a limited one-year trial of same-day deliveries directly from retailers or distribution hubs to residential addresses in the same local area, a service it dubbed "Metro Post".[250][251] The trial was initially limited to San Francisco and the only retailer to participate in the first few weeks was 1-800-FLOWERS.[252]

In November 2013, the Postal Service began regular package delivery on Sundays for Amazon customers in New York and Los Angeles,[253] which it expanded to 15 cities in May 2014.[254] Amazon Sunday delivery has been expanded to most major markets as of September 2015.

Forwarding and holds

[edit]

Residential customers can fill out a form in-person or online to forward mail to a new address, and can also send pre-printed forms to any of their frequent correspondents. They must have a valid address to forward their mail from and to, and verify their identity.[255] They can also put their mail on "hold", for example, while on vacation. The Post Office will store mail during the hold, instead of letting it overflow in the mailbox. These services are not available to large buildings and customers of a commercial mail receiving agency,[256] where mail is subsorted by non-Post Office employees into individual mailboxes.

First-class packages

[edit]

In April 2022, the USPS announced it would slow deliveries of almost one third of first-class packages as it sought to rely less on air transportation and find cost savings.[257][139][258][259] In July 2023, USPS eliminated First-Class package service and replaced it with USPS Ground Advantage.[260] USPS also greatly reduced the use of air transportation for First Class Mail letters and flats.

Financial services

[edit]

Postal money orders provide a safe alternative to sending cash through the mail, and are available in any amount up to $1,000. Like a bank check, money orders are cashable only by the recipient. Unlike a personal bank check, they are prepaid and therefore cannot be returned because of insufficient funds.[261] Money orders are a declining business for the USPS, as companies like PayPal, Venmo and others are offering electronic replacements.

From 1911 to 1967, the Postal Service also operated the United States Postal Savings System, not unlike a savings and loan association with the amount of the deposit limited.[262]

A January 2014 report by the inspector general of the USPS suggested that the agency could earn $8.9 billion per year in revenue by providing financial services, especially in areas where there are no local banks but there is a local post office, and to customers who currently do not have bank accounts.[263]

Employment

[edit]
A Rural Letter Carrier from Fort Myers, Florida

The Postal Service is the nation's second-largest civilian employer.[264] As of 2023, it employed 525,469 career employees and 115,000 non-career personnel, divided among offices, processing centers, and actual post offices.[265] The United States Postal Service would rank 43rd on the 2021 Fortune 500 list, if it was a private company[3] and ranks 136 on Global Fortune 500 list.[266]

A major round of job cuts, early retirements, and a construction freeze were announced on March 20, 2009.[267]

Workplace violence

[edit]

In the early 1990s, widely publicized workplace shootings by disgruntled employees at USPS facilities led to a Human Resource effort to provide care for stressed workers and resources for coworker conflicts.[268] Due to media coverage, postal employees gained a reputation among the general public as more likely to be mentally ill. The USPS Commission on a Safe and Secure Workplace found that "Postal workers are only a third as likely as those in the national workforce to be victims of homicide at work."[269] In the documentary Murder by Proxy: How America Went Postal, it was argued that this number failed to factor out workers killed by external subjects rather than by fellow employees.

This series of events in turn has influenced American culture, as seen in the slang term "going postal".[270][271]

In fiction

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  • In the film Miracle on 34th Street (1947), the identity of Kris Kringle (played by Edmund Gwenn) as the one and only "Santa Claus" was validated by a state court, based on the delivery of 21 bags of mail (famously carried into the courtroom) to the character in question. The contention was that it would have been illegal for the United States Post Office to deliver mail that was addressed to "Santa Claus" to the character "Kris Kringle" unless he were, in fact, the one and only Santa Claus. Judge Henry X. Harper (played by Gene Lockhart) ruled that since the U.S. Government had demonstrated through the delivery of the bags of mail that Kris Kringle was Santa Claus, the State of New York did not have the authority to overrule that decision.
  • The novel Post Office (1971), written by poet and novelist Charles Bukowski, is a semi-autobiographical account of his life over the years as a letter carrier. Bukowski would, under duress, quit and years later return as a mail clerk. His personal account would detail the work at lengths as frustrating, menial, boring, and degrading.
  • David Brin's novel The Postman (1985) portrays the USPS and its returned services as a staple to revive the United States government in a post-apocalyptic world. It was adapted as a film starring Kevin Costner and Larenz Tate in 1997.
  • In 2015, The Inspectors, which depicts a group of postal inspectors investigating postal crimes, debuted on CBS. The series uses the USPIS seal and features messages and tips from the Chief Postal Inspector at the end of each episode.
  • Signed, Sealed, Delivered (original title: Dead Letters), also known as Lost Letter Mysteries, is an American-Canadian drama/romantic comedy television series that aired on the Hallmark Channel from April 20 through June 22, 2014.
  • In the horror film Jacob's Ladder (1990 film) the main character Jacob Singer (played by Tim Robbins) is an army veteran and letter carrier in New York City.

See also

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References

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Further reading

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Revisions and contributorsEdit on WikipediaRead on Wikipedia
from Grokipedia
The United States Postal Service (USPS) is an independent federal agency responsible for providing universal postal services, including the delivery of mail and packages to nearly 169 million addresses across the nation, more than any other postal operator worldwide. Its mission centers on ensuring reliable, affordable, and efficient mail service that binds the country together, with a statutory obligation to serve all locations regardless of profitability. Established in its foundational form in 1775 when the Continental Congress appointed Benjamin Franklin as the first Postmaster General, the USPS evolved into its modern structure through the Postal Reorganization Act of 1970, which reorganized the prior Post Office Department into a self-funded entity operational from July 1, 1971. The agency maintains a legal monopoly on the delivery of non-urgent letters placed in the , a protection rooted in federal statutes to support its mandate, while competing with private carriers in and expedited services. Operating over 30,000 post offices and employing hundreds of thousands, the USPS has historically innovated in areas such as the introduction of the in 1963 to enhance sorting efficiency and nationwide since 1896, facilitating access to remote areas. Despite these achievements in scale and reach—delivering 112 billion pieces in fiscal year 2024—the USPS grapples with structural financial challenges, including persistent losses driven by declining first-class volumes, obligations, and , rendering it unable to fully fund operations without congressional relief or reforms. Recent audits highlight its poor financial condition, with calls for reevaluating aspects of the universal service obligation to achieve sustainability amid evolving communication technologies.

History

Origins and Early Development (1775–1860)

On July 26, 1775, the Second Continental Congress established the United States postal system by appointing as the first of the , creating an independent network to coordinate communication amid escalating conflict with Britain. Franklin, drawing on his prior roles as postmaster since 1737 and deputy postmaster general for the northern British colonies since 1753, organized initial post routes connecting major colonial centers like New York, , and , with weekly riders covering distances up to 80 miles per day. This system prioritized official correspondence and newspapers to support revolutionary efforts, operating without fixed rates or monopoly enforcement initially, and Franklin held the position until November 7, 1776, when wartime exigencies led to its temporary suspension. After independence, the postal service revived under the , with Congress authorizing postmasters in 1781 to manage routes primarily for government use, though private letters were carried at discretionary fees. The U.S. Constitution, ratified in 1788, explicitly empowered Congress "to establish Post Offices and post Roads," formalizing federal authority. assumed the role of in 1789 under the new government, overseeing a modest network of about 75 post offices and 2,000 miles of routes by 1790, funded through letter postage that often failed to cover costs, necessitating congressional subsidies. The Postal Act of February 20, 1792, signed by President , provided the system's enduring framework by creating the Post Office Department as an , designating over 200 post roads along existing highways and waterways, establishing graduated mileage-based rates (from 6 cents for up to 30 miles to 25 cents beyond 450 miles), and imposing a monopoly on letter mail carriage to prevent private competition from undermining service universality. The act subsidized newspaper distribution at one-eighth letter rates to foster public discourse, reflecting founders' emphasis on an informed populace, while penalties deterred unauthorized mail handling; by 1800, post offices numbered around 900, with annual revenue reaching $57,000 amid growing commercial correspondence. Early 19th-century expansion paralleled territorial growth and transportation advances, with post routes extending westward via stagecoaches after contracts and steamboats on rivers by the , tripling mail volume to over 30 million pieces annually by 1830. Reforms under (1823–1829) introduced semi-weekly deliveries in urban areas and rural carrier experiments, though deficits persisted due to subsidized rates. The 1845 rate reduction—to 5 cents for distances up to 300 miles—spurred usage, followed by the July 1, 1847, issuance of the first U.S. adhesive stamps (5-cent Franklin and 10-cent Washington imperforates), enabling prepaid postage though not compulsory until 1855. By 1860, the network encompassed 28,000 post offices and 8.7 million miles of routes, incorporating railroads for overland speed, yet faced challenges from sectional tensions and inconsistent funding, setting the stage for Civil War disruptions.

Expansion and Reforms in the 19th Century

The integration of railroads into the postal network marked a pivotal expansion in the mid-19th century, with an on July 7, 1838, designating all U.S. railroads as post routes, enabling faster long-distance transport. This shift accelerated after the Civil War, as on moving trains—first experimented with in 1862—became formalized under the Railway Mail Service established on August 28, 1864, which revolutionized efficiency by allowing clerks to distribute letters en route between cities. By the 1870s, railroads carried the majority of , supporting westward territorial growth and increasing the number of post offices from about 28,000 in 1860 to over 76,000 by 1900. Reforms aimed at affordability drove volume surges, as the Act of March 3, 1845, simplified rates by reducing zones to two and slashing letter postage—such as from 25 cents for 300 miles to 10 cents—prompting volume to more than double from an estimated 24.5 million letters in 1843 to 62 million in 1846. Further reductions via the Act of March 3, 1851, lowered domestic letter rates to 3 cents per half-ounce for distances up to 3,000 miles, fostering broader public access and contributing to persistent deficits that often exceeded $5 million annually by the late century, reflecting subsidized over profitability. These changes, inspired by international precedents like Britain's penny post, prioritized volume over revenue, with offsetting shortfalls through general appropriations. The Civil War disrupted but ultimately spurred innovations, as the suspended service in seceded states on May 27, 1861, while Union operations expanded to sustain communication for and needs, including initial home delivery trials in urban areas to alleviate post office congestion. In response to soldiers' remittances—often sent as cash prone to enacted the postal system on May 17, 1864, operational from November 1, allowing secure transfers up to $40 initially through 141 offices, which reduced robberies and laid groundwork for a nascent banking alternative amid wartime fiscal strains. Late-century reforms addressed rural isolation, culminating in (RFD), tested experimentally on October 1, 1896, in areas like , before nationwide rollout, delivering mail directly to farmsteads and boosting commerce by integrating rural populations into the national system at no extra carrier cost to recipients. By 1902, RFD was permanent, expanding routes to over 30,000 and necessitating standardized rural addresses, though it strained finances amid patronage politics until protections mitigated corruption in clerk appointments. These developments entrenched the postal service's role in national cohesion, with mail volume reaching hundreds of millions annually by century's end, despite ongoing deficits from low rates and expansive mandates.

20th Century Institutionalization and Challenges

In the early , the Post Office Department underwent significant institutional expansion to meet growing demand, including the introduction of on January 1, 1913, which allowed for the mailing of packages up to 11 pounds, fundamentally altering retail distribution and rural economies by enabling direct shipping from manufacturers to consumers. service began experimentally in 1918, transitioning to regular operations by 1920, which institutionalized faster long-distance communication and laid groundwork for aviation infrastructure. efforts accelerated post-World War I, with cancelling machines replacing manual stamping by the 1920s and early sorting devices emerging, though full-scale adoption lagged due to infrastructure limitations. By mid-century, the department employed hundreds of thousands, operating as one of the largest federal bureaucracies, with protections under the Pendleton Act increasingly enforced to reduce patronage. The Great Depression posed acute financial challenges, as mail volume plummeted amid widespread unemployment and economic contraction, forcing reliance on congressional appropriations to sustain operations while revenue from postage stamps and services dropped sharply. exacerbated logistical strains, with postal workers facing shortages of vehicles, fuel rationing, and heightened security demands for , yet they maintained delivery under arduous conditions, handling an influx of correspondence from service members. Postwar and population booms necessitated further institutional adaptations, including the system implemented on July 1, 1963, to streamline sorting amid rising volumes exceeding 60 billion pieces annually by the late 1960s. Labor tensions intensified in the mid-20th century, culminating in President Kennedy's 1962 executive order granting federal employees, including postal workers, the right to , marking a shift from patronage-based hiring to union-influenced wage and condition negotiations. By the 1960s, outdated management structures, persistent political interference from , and inefficiencies in handling over 80 billion pieces of yearly fueled widespread dissatisfaction. These issues erupted in the illegal nationwide strike beginning March 18, 1970, when letter carriers walked out over pay disputes, spreading to over 200,000 workers across major cities in defiance of prohibiting government employee strikes—the first such action in U.S. history—disrupting flow and prompting President Nixon's emergency intervention with military support. The strike, lasting eight days, highlighted systemic patronage, underfunding (with subsidies comprising 25% of the budget), and resistance to modernization, directly catalyzing the of 1970 that abolished the department in favor of the independent USPS.

Post-1970 Reorganization and Contemporary Shifts

The , signed into law on August 12, 1970, transformed the politically influenced Post Office Department into the independent United States Postal Service (USPS), structured as a government-owned designed to operate more like a business entity. This reform eliminated taxpayer subsidies, which had comprised approximately 25% of the prior budget, and imposed a mandate for the USPS to achieve financial self-sufficiency over the long term. It also ended patronage-based appointments by requiring Senate confirmation for the and established rights for postal unions, aiming to enhance operational efficiency and service reliability amid growing mail volumes in the postwar era. In the decades following, the USPS pursued modernization through investments in , such as optical character readers and sorting facilities, which initially boosted ; however, structural mandates for across all addresses, regardless of or profitability, clashed with emerging market dynamics. First-class mail volumes, the traditional revenue backbone, began a sustained decline driven by electronic diversion—where communications and payments shifted to , , and digital alternatives—with total mail pieces falling from a peak of 213 billion in fiscal year 2006 to about 120 billion by fiscal year 2023. This trend reduced mail per , inflating per-unit delivery costs and contributing to persistent operating deficits, averaging over $5 billion annually in the . The Postal Accountability and Enhancement Act of 2006 imposed price caps tied to the and required advance pre-funding of future retiree health benefits at 100% of projected liabilities—totaling over $5.5 billion annually from 2010 onward—which exacerbated financial strain without corresponding growth, as evidenced by cumulative losses exceeding $87 billion from 2007 to 2020. Offsetting this partially, growth spurred parcel volumes to rise from 4.7 billion pieces in 2010 to over 7 billion by 2023, diversifying streams beyond letters. Yet competition intensified from private firms like UPS and , which captured higher-margin express and package markets unburdened by obligations, prompting USPS reliance on partnerships such as last-mile delivery contracts. Recent reforms, including the Postal Service Reform Act of 2022, eliminated the pre-funding mandate for retiree health benefits, reducing accrued obligations by $57 billion and stabilizing cash flow, though underlying volume declines project a further 14-41% drop in mail pieces by 2035 under varying scenarios. Privatization proposals have gained traction amid these pressures, with advocates citing potential efficiency gains from market competition—similar to outcomes in countries like and the —while critics, including postal unions, warn of service degradation in low-density rural areas, where delivery costs exceed revenues by factors of 2-3 times urban averages. Operational shifts under since 2020 emphasized network consolidation and cost controls, yielding modest net income in fiscal year 2022 but renewed losses of $3.1 billion in fiscal year 2023 amid and volume softness. These adaptations reflect causal tensions between the USPS's statutory monopoly on letter mail—intended to subsidize universal access—and competitive realities favoring profitable segments.

Universal Service Obligation

The Universal Service Obligation (USO) of the United States Postal Service requires the provision of postal services to bind the nation together through personal, educational, financial, and economic correspondence, while establishing an efficient, just, and reasonable system for mail collection, delivery, and transportation. This mandate, codified in 39 U.S.C. § 101, emphasizes prompt, reliable, and efficient services to patrons across all areas, including the maintenance of post offices and forms for public use in postal transactions. The obligation further requires nondiscriminatory treatment, with services planned, developed, and provided to meet public needs at fair and equitable rates. Core components of the USO include comprehensive geographic coverage, mandating delivery to every residential and business address in the United States, regardless of location, population density, or economic viability. This extends to remote, rural, and underserved areas where private carriers may not operate profitably. Delivery frequency for market-dominant mail products, such as letters and periodicals, must occur at least six days per week, a requirement reinforced by the Postal Service Reform Act of 2022, which explicitly prohibits suspension of Saturday delivery. The USO also encompasses a defined range of products, including single-piece First-Class Mail, Media Mail, and Priority Mail, delivered through an integrated network that supports both market-dominant and competitive services. Pricing under the USO must be uniform for comparable services irrespective of distance or sender location, ensuring affordability and accessibility without geographic discrimination. While the USO draws from multiple statutes, including 39 U.S.C. §§ 101, 403, and 601, it lacks a single exhaustive statutory definition, comprising instead a collection of legal requirements and regulations that evolve with congressional action and Postal Regulatory Commission oversight. This framework distinguishes the USPS as the sole entity legally obligated to fulfill all USO elements nationwide, unlike private competitors who may selectively serve profitable routes.

Postal Monopoly Provisions

The Postal Service (USPS) maintains a legal monopoly on the and delivery of non-urgent letter within the , primarily enforced through the Private Express Statutes (PES), a collection of federal laws codified at 18 U.S.C. §§ 1693–1699 and supplemented by 39 U.S.C. §§ 601–606. These statutes prohibit private entities from collecting, receiving, or delivering letters or packets—defined as written or printed messages intended for an individual or firm—unless specific exceptions apply, with violations subject to civil penalties up to six times the applicable postage and criminal fines or imprisonment. The monopoly extends to access of curbside mailboxes, where 18 U.S.C. § 1725 restricts deposit of non-USPS mailable matter, ensuring that private carriers cannot bypass USPS infrastructure without authorization. This framework traces its origins to English postal precedents adopted in the American colonies, with the explicitly defining the monopoly on October 18, 1782, via an ordinance barring private letter carriage to protect public revenue. The Postal Act of 1792 reinforced this by granting the exclusive rights over letter conveyance, a provision upheld through subsequent amid 19th-century challenges from private expresses that prompted tighter enforcement to subsidize to underserved areas. By the , the PES were consolidated in 1934 to counter Depression-era competition, maintaining the structure post-1970 USPS reorganization under the , which preserved the monopoly to fund obligations like six-day delivery to all addresses. The monopoly's scope excludes parcels exceeding 12 ounces if not letter-like, bulk advertising matter under certain prepaid conditions, and newspapers or periodicals transported as merchandise, allowing competitors like and to dominate since the Parcel Monopoly suspension. However, it strictly applies to first-class and standard mail resembling letters, with USPS regulations in 39 C.F.R. Part 310 clarifying that identical printed letters or unsealed communications fall under PES if not exempted. Exceptions and suspensions mitigate the monopoly's rigidity: 39 U.S.C. § 601 permits private carriage for extremely urgent letters (e.g., telegraphic messages) at three times the USPS rate, or when USPS service is unavailable or inadequate (e.g., delays exceeding specified thresholds like 10 days for local mail). USPS may issue temporary suspensions for specific routes or classes, such as international airmail or registered alternatives where private indemnity equals USPS fees, and federal agencies can self-carry under 39 U.S.C. § 601(b). Enforcement relies on USPS inspections, with over 1,000 annual investigations reported in the yielding revenue recovery, though critics argue the provisions stifle innovation by insulating USPS from competition in a market where private delivery volumes have surpassed USPS letters since 2007.

Governance Mechanisms and Oversight

The United States Postal Service (USPS) is governed primarily by its Board of Governors, which consists of nine members appointed by the President of the United States with the advice and consent of the Senate, plus the Postmaster General and Deputy Postmaster General, forming a total of eleven members. No more than five governors may belong to the same political party, a provision intended to promote bipartisanship in decision-making. The board sets USPS policy, approves budgets, appoints the Postmaster General—who serves as the agency's chief executive—and the Deputy Postmaster General, and oversees strategic direction, including pricing and service changes. Governors also select the board chairman and the USPS Inspector General. External oversight is provided by the independent Postal Regulatory Commission (PRC), established under the of 1970 and significantly empowered by the (PAEA) of 2006. The PRC reviews and approves rate changes for market-dominant products, monitors service performance, ensures compliance with obligations, and promotes transparency and competition in postal markets. It issues annual reports on USPS finances and operations, directs corrective actions for performance shortfalls, and adjudicates complaints from mailers. The PAEA shifted rate-setting from direct congressional control to a more market-oriented framework regulated by the PRC, while requiring USPS to prefund retiree health benefits—totaling over $5 billion annually from 2017 onward—to isolate postal operations from taxpayer subsidies. The USPS Office of Inspector General (OIG) conducts independent audits, investigations, and evaluations of USPS programs to detect waste, fraud, and abuse, reporting findings to and the board. Since 2023, the OIG has extended oversight to the PRC itself to enhance across the postal regulatory ecosystem. Congressional committees, such as the House Oversight and Accountability Committee, exercise legislative oversight through hearings, appropriations influence, and periodic reforms like the PAEA, which addressed chronic deficits by mandating financial transparency and competitive pricing adjustments. As of early 2025, the board faced vacancies, with only six active governors, potentially hindering timely decision-making amid operational challenges.

Operational Framework

Delivery Systems and Infrastructure

The United States Postal Service operates an extensive delivery network comprising over 31,000 post offices and more than 200 and distribution facilities, enabling the handling of approximately 340 million pieces of and packages daily. This infrastructure supports across urban, suburban, and rural areas, with occurring at facilities such as Processing and Distribution Centers (P&DCs), Network Distribution Centers (NDCs), and, under ongoing modernization, Regional Processing and Distribution Centers (RPDCs) and Local Processing Centers (LPCs). As of 2023, plans include consolidating operations into about 61 RPDC regions and 180 to 200 LPCs to enhance efficiency. Delivery systems differentiate by geography: urban and suburban areas primarily use city carrier routes with door-to-door or centralized delivery via vehicles or foot, while rural routes rely on rural carriers serving extended areas, often covering higher per-unit costs estimated at $3.19 per package versus $1.52 in urban zones. Highway Contract Routes supplement these with private contractors for remote or high-volume transport. On-time performance shows minimal disparities, with national differences under 5 percentage points between rural and urban deliveries. The USPS fleet, the largest civilian vehicle array in the world at 257,894 units as of 2025, includes right-hand-drive delivery trucks, vans, and specialized equipment for mail transport. Modernization under the Delivering for America plan targets replacement of aging LLVs with Next Generation Delivery Vehicles (NGDVs), incorporating up to 66,000 units—10% electric—alongside 9,250 commercial off-the-shelf electric vans ordered in 2023. Investments exceeding $40 billion over ten years aim to boost processing capacity from 60 million to 88 million packages daily through over 600 new sorters and network reconfiguration for regionalized sorting. These changes prioritize causal efficiencies in flow, though implementation has faced pauses amid operational reviews as of 2024. Air and surface transportation integrate via contracts with airlines and ground carriers for long-haul, feeding into local hubs. Rural emphasizes , with carriers adapting to dispersed addresses, contributing to sustained service despite higher costs unsubsidized by urban volumes. Empirical from oversight reports affirm that network shifts have not systematically disadvantaged rural delivery times, aligning with mandates for equitable access.

Fleet Management and Logistics

The United States Postal Service operates one of the world's largest fleets, comprising 257,894 vehicles as of July 1, 2025, primarily consisting of delivery vans, trucks, and support equipment for mail transport. Ground transportation dominates the fleet, with approximately 11,800 Postal Vehicle Service (PVS) routes managed internally and 12,500 Highway Contract Routes (HCR) outsourced to private carriers. These vehicles facilitate the movement of mail across a network linking 285 processing facilities, utilizing highways as the primary mode while incorporating air, rail, and maritime options for longer hauls. Fleet modernization centers on replacing aging Long Life Vehicles (LLVs), many dating to the 1980s, through the Next Generation Delivery Vehicle (NGDV) program. In February 2021, the USPS awarded an indefinite delivery, indefinite quantity contract to Oshkosh Defense for up to 165,000 NGDVs, with plans for a mixed fleet of 106,480 vehicles including at least 40% battery-electric variants. By June 2024, approximately 22,500 new delivery vehicles—mostly (COTS) models—had been acquired, though production of NGDVs and electric variants faced delays due to issues and supplier challenges, postponing over $77 million in expected savings through 2025. As of October 2024, zero-emission electric NGDVs were showcased, but broader deployment remains limited amid ongoing for the remaining 13,480 vehicles planned through 2028. The USPS does not maintain its own aircraft fleet, instead contracting with commercial carriers for air transportation of priority mail. United Parcel Service (UPS) secured a major air cargo contract in 2024, replacing as the primary provider and leveraging UPS's fleet of 298 for domestic and international routes. This outsourced model supports time-sensitive logistics, with air transport integrated into a broader system emphasizing direct routing for efficiency. systems have been installed on 70,000 vehicles to enhance maintenance and tracking, addressing challenges like rising operational costs and an aging infrastructure. faces ongoing hurdles, including preventive maintenance inconsistencies for electric vehicles and external pressures such as congressional efforts to reduce funding for amid production setbacks.

Mail Processing and Sorting

The United States Postal Service (USPS) processes and sorts mail through a network of facilities that handle incoming volumes exceeding billions of pieces annually, utilizing a combination of automated machinery and manual operations to route items by destination . Mail collected from mailboxes, businesses, and drop-off points is transported to local post offices for initial cancellation and facing, then forwarded to larger processing centers for detailed sorting based on class (letters, flats, parcels) and delivery sequence. This process relies on barcode scanning, (OCR), and mechanized diverters to achieve throughput rates that prioritize efficiency, with automated systems processing letters and flats up to six times faster than manual methods. USPS operates a tiered facility structure, including approximately 22 Regional and Distribution Centers (RPDCs) strategically located across 19 states to consolidate high-volume sorting, alongside 180 to 200 planned Processing Centers (LPCs) for finer distribution, and about 20 Network Distribution Centers (NDCs) focused on sectional center facilities for bulk mail. Service Hubs function as cross-dock points for pre-sorted mail entered directly by mailers, reducing redundant handling. Under the Delivering for America (DFA) plan initiated in 2021, USPS is transitioning from legacy and Distribution Centers (P&DCs) to this consolidated model, aiming to invest $40 billion in network modernization, though critics including the Postal Regulatory Commission have noted potential service disruptions in rural areas and overstated cost savings projections. Automation dominates sorting, with machines like the Automated Flat Sorting Machine (AFSM) 100 handling flats via OCR and barcoding for high-speed culling and sequencing, while the Flats Sequencing System (FSS) arranges larger envelopes in carrier delivery order to minimize manual presorting. For parcels, next-generation sorters deployed since 2021 process up to 4,400 items per hour per machine, with over 600 units installed by 2025 to boost daily package capacity from 60 million to 88 million pieces. These systems integrate 365 automated guided vehicles (AGVs) across 25 facilities for internal transport, enhancing throughput amid rising volumes. In 2025, USPS launched 14 new Sorting and Delivery Centers (SDCs) equipped with advanced package sorters to compete with private carriers, part of DFA's emphasis on regional hubs over dispersed plants, though has faced for altering service standards—extending some First-Class Mail times to 1-5 days while claiming 75% retention of prior benchmarks. Despite these upgrades, manual processing persists for non-machineable items, contributing to occasional bottlenecks during peak seasons like holidays, where seasonal hiring of 14,000 workers supports sustained operations.

International Operations

The United States Postal Service (USPS) conducts international operations by dispatching outbound mail from International Service Centers (ISCs), which handle distribution to foreign destinations, and processing inbound mail at dedicated International Mail Facilities (IMFs). USPS provides mail services to over 180 countries, encompassing letters, documents, and parcels through products such as First-Class Mail International for lightweight items up to 3.5 ounces, Priority Mail International offering delivery in 6-10 business days with up to $200 insurance, and express options like Priority Mail Express International. Global Express Guaranteed, for time-sensitive shipments with delivery in 1-3 days, operates via partnership with as the primary carrier. As a founding member of the Universal Postal Union (UPU) since 1874, USPS adheres to global standards for mail exchange, including terminal dues for inbound handling costs. Longstanding disputes arose over UPU remuneration formulas that allowed low-cost inbound packets from countries like —often subsidized shipments—to impose net losses on USPS exceeding $300 million annually by under-reimbursing domestic delivery expenses. In response, the U.S. notified intent to withdraw in October 2018, prompting 2019 UPU reforms enabling self-declared rates by July 2020, which permitted reciprocal pricing negotiations and averted exit while shifting toward market-based principles. Inbound international mail enters through nine IMFs, where U.S. and Protection (CBP), FDA, and other agencies inspect for , including narcotics precursors; the John F. Kennedy IMF in New York processes over 50% of U.S. inbound volume, handling roughly one million items daily. Mandatory advance electronic data submission, implemented since 2021, aids risk-based targeting, though inspection rates remain low amid surging volumes from . Outbound processing complies with export controls outlined in the International Mail Manual, covering mailability and special programs like M-bags for bulk printed matter at reduced rates. International mail volume dropped from about 1 billion pieces in fiscal year 2017 to 355 million recently, driven by digital substitution, private carrier competition, and rate adjustments. Service suspensions occur for destinations like and due to logistical disruptions. These operations generate competitive but face pressures from foreign subsidies and risks, with reforms enhancing cost recovery yet exposing vulnerabilities in high-volume, low-value inbound flows.

Products and Revenue Streams

Domestic Mail Classes and Pricing

The United States Postal Service (USPS) categorizes domestic mail into market-dominant classes, which are subject to price regulation under the of 2006 to prevent cross-subsidization with competitive products and ensure attributable costs are covered. These classes include First-Class Mail, USPS Marketing Mail, Periodicals, Media Mail, and Library Mail, with Priority Mail Express also classified as market-dominant. Pricing is proposed by the USPS Board of Governors and reviewed by the Postal Regulatory Commission (PRC) for compliance with statutory criteria, such as inflation-linked adjustments via the and prohibitions on undue discrimination. Adjustments occur periodically, with a 6.8% average increase for market-dominant products implemented in July 2025, including incentives for volume growth in First-Class and Marketing Mail. First-Class Mail handles letters, postcards, flats, and small parcels up to 13 ounces for flats or 15.999 ounces for parcels, providing relatively fast delivery (1-5 days) and forwarding at no extra charge. Eligibility covers personal correspondence, bills, statements, and lightweight merchandise without restrictions on content beyond general mailability. Single-piece retail prices as of 2025 stand at $0.78 for a 1-ounce letter or large (up from $0.73 pre-July adjustment), $0.61 for postcards, and $0.29 per additional ounce; metered or commercial mail receives discounts averaging 5-10 cents per piece through presorting, , or drop shipment. Parcels under this class start at $5.25 for up to 4 s retail, with commercial rates lower based on zone and weight. USPS Marketing Mail, previously known as Standard Mail, targets bulk advertisements, circulars, newsletters, and small parcels, requiring a minimum of 200 pieces or 50 pounds per mailing for eligibility. It offers the lowest per-piece rates among letter mail but with deferred delivery (no guaranteed speed) and limited forwarding. Pricing is volume-based and tiered by presort level, compatibility, and entry point, with commercial letter rates often falling to 0.100.10-0.20 per piece for high-volume mailers after July 2025 adjustments; flats and parcels add shape-based surcharges. Annual fees apply at $370 per office for presort or carrier route mailings. Periodicals applies to authorized publications such as newspapers, magazines, and newsletters distributed at least quarterly, with eligibility requiring USPS approval based on paid subscriptions and editorial content criteria. It features subsidized rates for in-county and nonprofit delivery to support dissemination of information, with average per-issue costs of 0.100.10-0.25 depending on weight, zone, and sack/container level post-July 2025 changes. Outside-county mail receives higher but still discounted rates compared to First-Class, with incentives for carrier-route bundles. Package Services encompass Media Mail for books, sound recordings, and educational materials (rates starting at $4.13 for 1 pound retail, with commercial discounts to $3.50-$4.00 via machinability) and Library Mail for shipments between libraries or to/from educational institutions (similar low rates, e.g., $3.30-$3.80 per pound equivalent). Both classes prohibit enclosures and offer no expedited service, with pricing scaled by weight zones and limited to 70 pounds maximum. Bound Printed , another subclass, covers catalogs and directories at rates akin to Media Mail but allowing minor . Priority Mail Express provides overnight or second-day guaranteed delivery for documents and packages up to 70 pounds, with retail flat-rate options from $28.75 for envelopes; commercial pricing averages 10-20% lower. Commercial pricing across classes incorporates workshare discounts for presorting (up to 20% off retail) and (barcoding for further reductions), reflecting causation principles where mailers assuming preparation tasks receive credits. The PRC monitors these to ensure market-dominant classes do not subsidize competitive ones like Priority Mail, amid ongoing volume declines in letter mail driving rate pressures. No price increase is planned for First-Class single-piece letters in 2026.

Package and Parcel Services

The United States Postal Service (USPS) offers package and parcel services as competitive products under the of 2006, allowing flexible pricing to compete with private carriers like UPS and . Key offerings include Priority Mail for 1-3 day delivery with tracking and insurance up to $100, USPS Ground Advantage for cost-effective ground shipping typically taking 2-5 days, and Priority Mail Express for next-day or second-day guaranteed service. Parcel Select provides discounted rates for high-volume commercial shippers entering mail at USPS facilities. These services handled diverse parcel types, from shipments to bulk business mail, with options for flat-rate boxes and envelopes to simplify pricing. Parcel has expanded markedly since the early , offsetting declines in letter amid e-commerce growth, particularly partnerships with platforms like Amazon for last-mile delivery. From fiscal year 2010 to 2023, competitive package rose as traditional volumes fell, with parcels substituting for lost though not fully covering rising costs. In fiscal year 2023, USPS processed about 6.6 billion domestic parcels, capturing roughly 31% of the U.S. parcel market by , ahead of Amazon Logistics at 28% and UPS at 21%. By , however, USPS's share stood lower at around 16%, reflecting its focus on lower-cost services compared to competitors' premium offerings. Shipping and package services generated $32 billion in in recent years, comprising a growing portion of total operating amid overall contraction to 112.5 billion pieces annually. USPS has introduced innovations like USPS Ground Advantage in July 2023, consolidating Retail Ground, First-Class Package Service, and Parcel Select Ground into a single ground option with improved tracking and forwarding, yielding a 16.1% volume increase and 27% revenue surge year-over-year by early 2025. Despite this, fiscal year 2025 third-quarter shipping volume dipped 6.5% year-over-year to about 1.6 billion pieces, though revenue edged up 0.8% due to rate adjustments. Competition intensified with rate hikes, including 6.3% for Priority Mail and 7.1% for Ground Advantage effective January 2025, alongside a proposed 25% increase for Parcel Select in 2024 to align with costs. USPS aims to expand processing capacity to 88 million packages daily by deploying over 600 sorters, targeting sustained gains in a parcel sector projected to grow 36% by 2030. Systemic challenges persist, as parcel growth alone has not stemmed net losses, with competitors leveraging superior technology and networks while USPS bears burdens.

Ancillary Financial Offerings

The United States Postal Service (USPS) offers domestic money orders as its primary ancillary financial product, a service originating in 1864 to facilitate secure remittances, particularly for Civil War soldiers. These prepaid instruments function as a alternative to cash or personal checks, with a maximum value of $1,000 per order, and are available for purchase at post offices using cash or debit cards. Fees are tiered: $2.10 for orders up to $500 and $2.90 for amounts between $501 and $1,000, with receipts provided for tracking and proof of payment. Money orders do not expire and feature security enhancements, including a redesigned format introduced in February 2025 with updated bank routing numbers to deter counterfeiting. Sales have declined 60% since 2000 amid competition from electronic payments, prompting calls for modernization like digital issuance, though implementation remains limited. USPS previously provided international postal money orders to over 100 countries, with limits up to $700 per order, but discontinued sales effective October 1, 2024, due to declining demand and operational challenges with foreign partners ceasing acceptance by October 1, 2025. In their place, the Sure Money (DineroSeguro) service enables electronic transfers from select post offices to recipients in 10 Latin American countries, primarily Mexico, with daily limits of $1,500 per sender. This outbound-only option, available since the early 2000s, processes funds via partnerships with local financial institutions for cash pickup, though volumes remain modest compared to private remittance providers. Efforts to expand , such as pilots for check cashing, bill pay, and access launched in 2021 at select locations in cities like , and , have seen minimal adoption, serving only six customers in one early evaluation. These initiatives, aimed at the population, face statutory restrictions on nonpostal products and competition from established financial entities, limiting scalability. USPS statutes generally prohibit broader banking activities, confining offerings to postal-linked financial tools without taxpayer funding or expansion into deposits or loans.

Workforce Dynamics

Employment Composition and Scale

The United States Postal Service maintains a of approximately 640,000 employees, ranking it among the largest employers within the federal . In 2024, this total comprised 533,724 employees and 105,951 pre-career employees, reflecting a strategic shift toward permanent positions through ongoing conversions. Pre-career roles, formerly termed non-career, function primarily as entry-level positions with reduced benefits, lower pay scales, and greater scheduling flexibility to meet fluctuating operational demands, while employees receive enhanced job protections, benefits, and eligibility after probationary periods. Since 2022, the Postal Service has converted 190,000 pre-career workers to status to stabilize staffing amid volume fluctuations and pressures. Workforce composition centers on five primary crafts—city carriers, rural carriers, clerks, mail handlers, and maintenance personnel—that account for roughly 90% of total employees. City carriers handle urban and suburban delivery routes on foot or by , rural carriers manage evaluated routes in less densely populated areas with compensation tied to productivity metrics, clerks process and serve retail functions, and mail handlers load, unload, and bulk mail containers. From 2019 to 2023, overall grew by 1.3% to 636,966 workers, with mail handlers expanding by 18.8% to support parcel volume surges, clerks increasing 1.9%, city carriers declining less than 0.5%, and rural carriers decreasing 3.1% amid route consolidations and . Career positions within these crafts rose across most categories, while pre-career numbers fell, particularly among city carriers (-20.8%) and clerks (-11.8%), underscoring recruitment challenges in high-turnover roles.
Craft CategoryTotal Change (FY 2019–2023)Career ChangePre-Career Change
City Carriers-0.5%+5.2%-20.8%
Rural Carriers-3.1%+7.0%-15.7%
Clerks+1.9%+4.8%-11.8%
Mail Handlers+18.8%+22.2%+1.5%
Demographic composition includes 45% women and 54% from historically underrepresented racial groups, with Black/African American employees at 30%, Hispanic/Latino at 14%, and Asian at 8%; veterans represent about 10% of the total. These figures derive from Postal Service self-reported data, which may understate turnover in pre-career segments due to high attrition rates exceeding 50% in some entry roles.

Union Influence and Labor Contracts

The United States Postal Service (USPS) maintains nine collective bargaining agreements with seven labor unions, covering approximately 550,000 career employees as of recent reports. The largest unions include the (APWU), representing over 200,000 clerks, motor vehicle operators, and other maintenance personnel; the (NALC), covering city delivery carriers; and the National Postal Mail Handlers Union (NPMHU), with about 52,000 members handling bulk mail processing. These agreements govern wages, benefits, hours, and working conditions, including administrative leave with pay for emergency conditions such as acts of God—severe weather, natural disasters, or other events that prevent reporting to work or close facilities—as outlined in the Employee and Labor Relations Manual (ELM) section 519, with current contracts spanning 2021–2024 for APWU (extended to 2027), 2023–2026 for NALC, and 2022–2025 for NPMHU. Negotiations occur every few years, but failure to reach agreement triggers binding interest under the of 1970, which prohibits strikes following the disruptive 1970 wildcat strike involving 200,000 workers. This process has resolved eight of fourteen major disputes for the largest unions since 1971, often resulting in arbitrators awarding increases, cost-of-living adjustments (COLAs), and preserved work rules that limit management flexibility in scheduling and automation. For instance, recent APWU and NALC contracts include annual general increases of 1.3–2.3 percent plus COLAs tied to the , contributing to compensation rising amid declining mail volumes. Union contracts significantly shape USPS operations, with labor comprising 76 percent of total costs—$57 billion in fiscal year 2018—and carrier-related expenses growing from 43 to 48 percent of compensation due to expanding delivery points and rigid staffing rules. These agreements embed seniority-based protections, overtime guarantees, and restrictions on subcontracting, which USPS officials argue hinder productivity gains and adaptability to e-commerce-driven parcel shifts. Empirical data from USPS audits indicate that work-hour reductions have lagged behind volume declines, with only a 2 percent cut in fiscal 2023 despite promises of efficiency, partly due to negotiated limits on layoffs and reassignments. Unions counter that financial strains stem more from statutory pension overpayments—estimated at $50–75 billion to the Civil Service Retirement System—and external factors like inflation, which amplified compensation expenses by over $1 billion in COLAs alone in 2022. The entrenched union influence extends to political advocacy, with organizations like APWU and NALC contributing millions to campaigns—over $1.5 million from APWU in the 2023–2024 cycle—often aligning with policies preserving public-sector benefits over or . This dynamic has perpetuated a cost structure where benefits and retiree obligations, locked in via contracts, exacerbate annual losses exceeding $6 billion in recent years, even as package revenues grow. outcomes, while neutral in intent, have historically favored employee-side proposals on pay equity, reflecting panels' emphasis on comparability with federal wages rather than USPS's market-driven needs.

Safety, Violence, and Productivity Issues

The United States Postal Service experiences elevated workplace injury rates compared to the average, with employees approximately twice as likely to suffer on-the-job injuries. Common incidents include musculoskeletal disorders from repetitive tasks like mail handling, as well as slips, trips, falls, and vehicle-related accidents during delivery operations. In fiscal year 2023, twelve USPS employees died from workplace injuries or accidents, contributing to a persistent safety challenge amid high-volume operations. The USPS has faced repeated citations from the (OSHA) for violations exposing workers to hazards such as struck-by objects, electrical shocks, crushing risks, and fire dangers. For instance, in January 2023, OSHA issued sixteen violations across multiple facilities for failures in , procedures, and electrical safety, resulting in proposed penalties. Earlier, in 2016, the agency fined the USPS $178,000 for repeat violations including unbelted powered industrial truck operations and unguarded machinery. These enforcement actions highlight systemic gaps in hazard prevention, though the USPS maintains compliance programs under OSHA standards. Workplace violence has been a notable concern, originating from a series of high-profile shootings by postal employees in the 1980s and 1990s that popularized the phrase "going postal" to describe extreme rage leading to violence. The 1986 , incident, where employee Patrick Sherrill killed fourteen coworkers and injured six before , exemplified such events and prompted internal reviews. However, a 2000 commissioned by William Henderson concluded that postal workers are not disproportionately prone to compared to the general U.S. , attributing media amplification to the perception rather than statistical excess; the panel reviewed thirty-four incidents from 1986 to 1999, finding no unique causal factors beyond broader societal trends in and stress. Despite this, isolated cases persist, underscoring the need for enhanced threat assessment and employee assistance programs. Productivity challenges at the USPS stem from inefficiencies in mail processing and delivery, exacerbated by declining mail volumes, aging , and labor constraints. Office of audits of low-performing facilities have identified delays in sorting, inadequate staffing during peak hours, and suboptimal use of , leading to on-time delivery rates below targets. In 2023, the USPS failed to meet any of its four core goals—high-quality service, excellent , financial health, and workforce effectiveness—as outlined in its annual report to the Postal Regulatory Commission. Further, reviews have flagged inaccuracies in reporting, such as manipulated metrics for delivery times, which undermine and operational improvements. These issues reflect causal pressures from fixed costs, union work rules limiting flexibility, and from private carriers, hindering overall efficiency gains.

Financial Realities

The United States Postal Service (USPS) has experienced persistent declines in mail volume since the early , driven primarily by digital substitution for traditional correspondence and advertising. First-Class Mail volume, encompassing letters, postcards, and large envelopes, plummeted 50 percent from 92 billion pieces in (FY) 2008 to 46 billion pieces in FY 2023. This downward trajectory continued into FY 2024, with First-Class Mail volume reaching 44 billion pieces, compared to peaks exceeding 60 billion in the mid-. Total mail and package volume fell to 112.5 billion pieces in FY 2024, a 3.2 percent decrease from the prior year, reflecting broader erosion in Marketing Mail and periodicals alongside First-Class declines. These trends stem from electronic alternatives like and online billing, which have causally supplanted physical mail without corresponding growth in compensatory categories sufficient to offset losses. Despite volume contraction, USPS operating has shown growth over the decade, rising from $67.1 billion in FY 2010 to $79.5 billion in FY 2024, a cumulative increase fueled by rate adjustments and expansion into higher-margin package services. The share of derived from traditional mail categories shrank from 85 percent in 2000 to 51 percent by 2024, as shipping and packages grew to comprise nearly half of total , reaching $32.3 billion in FY 2024 (up 2 percent year-over-year). However, First-Class Mail itself declined 1.4 percent in Q3 FY 2025 amid a 5.4 percent drop, underscoring the limits of pricing power to fully counteract erosion in core letter mail. Partial FY 2025 data indicate continued resilience, with Q1 totals at $22.5 billion (up 4.1 percent), bolstered by package gains, though underlying mail pressures persist. These dynamics highlight a structural shift: while package from e-commerce partnerships has mitigated absolute declines, the foundational reliance on declining First-Class volumes—historically the most profitable per piece—exacerbates controllable loss factors when expenses rise faster than adjusted . USPS data project ongoing First-Class and Marketing Mail volume reductions of over 5 billion pieces annually without intervention, pressuring long-term sustainability despite tactical uplifts.

Cost Structures and Persistent Losses

The Postal Service's operating expenses primarily consist of for its , transportation costs, and facility maintenance, with personnel-related expenditures dominating the cost structure. In 2023, total operating expenses amounted to $85.4 billion, reflecting a 7.3% increase from the prior year, driven largely by higher outlays. Personnel operating expenses continued to rise in 2024, increasing by $1.4 billion over 2023 levels, amid efforts to manage work hours through reductions totaling 32 million hours (2.7%) in the 2023 operating plan. These labor costs, which historically represent approximately 75-80% of total expenses, stem from a unionized exceeding 600,000 employees subject to agreements that limit flexibility in wage adjustments and staffing reductions. Transportation and building-related expenses form secondary but significant portions of the cost base, encompassing , vehicle maintenance, and depreciation on an extensive network of processing plants and delivery routes designed for universal service obligations. In 2023, these non-personnel costs contributed to the overall expense growth, exacerbated by inflationary pressures on and supplies, though specific category breakdowns highlight transportation as roughly 10-15% of operations. The fixed nature of much of this infrastructure— including rural delivery mandates and last-mile commitments—imposes baseline costs that do not scale downward with fluctuating mail volumes, creating structural rigidity. Efforts to modernize, such as network consolidations, have yielded some efficiencies, but have not offset the inertia from legacy assets and regulatory requirements. Persistent financial losses arise from this cost-heavy model amid revenue pressures, with the USPS recording a net loss of $6.5 billion in 2023 and escalating to $9.5 billion in 2024 under generally accepted principles. While USPS management distinguishes "controllable" losses—reduced in 2024 through —from non-cash items like retiree benefit amortizations for over 80% of the 2024 deficit, the aggregate shortfalls reflect deeper causal factors including unadjusted fixed costs against declining traditional volumes. Cumulative losses since 2007 have exceeded $100 billion, sustained only through borrowing against a $15 billion debt cap, underscoring the unsustainability of cost structures unresponsive to market-driven volume shifts. Independent analyses, such as those from the USPS Office of , attribute ongoing deficits to variances in projected versus actual expenses, particularly in compensation and operations, rather than solely external adjustments.

Retirement Liabilities and Regulatory Burdens

The United States Postal Service (USPS) maintains retirement benefits for its employees through two primary pension systems: the (CSRS) for employees hired before 1984 and the (FERS) for those hired afterward, alongside retiree health benefits funded via the Postal Service Retiree Health Benefits Fund (PSRHBF). Actuarial valuations have revealed substantial overfunding in both CSRS and FERS pensions, stemming from historical contribution rates that exceeded actual liabilities due to higher-than-expected investment returns and flawed demographic assumptions by the Office of Personnel Management (OPM). For instance, as of recent assessments, USPS overfunding in these plans has accumulated to approximately $13 billion, with CSRS surpluses alone exceeding needs by billions because contributions were calculated without fully accounting for credits or market performance. These surpluses reside in Treasury-managed funds, effectively subsidizing general federal obligations rather than being refunded to USPS, exacerbating cash flow strains without reducing operational costs. In contrast, USPS retiree health benefits represent a massive underfunded , with the PSRHBF holding responsibility for premiums covering annuitants' future medical costs, distinct from pensions. The unfunded portion of these obligations has driven significant financial pressure, contributing to a $9.8 billion increase in total liabilities for 2024, partly from rising benefit accruals amid an aging and escalating healthcare costs. USPS reported a $9.5 billion net loss for FY2024 under , of which roughly $7.7 billion qualified as uncontrollable, including retiree health and shortfalls that divert funds from core operations. The Postal Accountability and Enhancement Act (PAEA) of 2006 imposed unique regulatory burdens by mandating USPS to pre-fund its retiree health benefits at levels far exceeding those for other federal entities, which typically pay claims on a pay-as-you-go basis without such advance amortization. PAEA required initial amortization of the full liability over 10 years into PSRHBF, followed by 40-year payments starting in FY2017 to cover projected costs through 2056, totaling tens of billions in mandatory transfers that strained liquidity during mail volume declines post-2008. This pre-funding regime, coupled with pension overfunding misallocations estimated at $90 billion over decades, created artificial deficits by forcing cash outflows for hypothetical future expenses while prohibiting appropriations or borrowing flexibility afforded to other agencies. PAEA's rate increase caps tied to inflation further limited revenue responses, amplifying the fiscal drag from these obligations. The Postal Service Reform Act (PSRA) of 2022 partially alleviated these burdens by eliminating about $57 billion in prior pre-funding mandates, integrating Medicare eligibility for retirees, and shifting some CSRS costs back to , yet residual liabilities persist, with PSRHBF payments resuming and overall retirement obligations still totaling hundreds of billions in long-term projections. These reforms notwithstanding, the structural mismatch—overfunded pensions yielding no refunds alongside underfunded health benefits—continues to undermine USPS , as evidenced by ongoing controllable losses and the absence of mechanisms to redirect surpluses toward operational needs. Independent analyses, including from the USPS Office of Inspector General, highlight how PAEA's design prioritized theoretical solvency over practical cash management, contributing to defaults on payments during revenue shortfalls and perpetuating a cycle of borrowing at high interest rates.

Rate Adjustments and Pricing Policies

The Postal Regulatory Commission (PRC) regulates rate adjustments for the United States Postal Service's (USPS) market-dominant products, including First-Class Mail and periodicals, pursuant to the (PAEA) of 2006, which shifted from direct congressional control to an independent oversight model. USPS must submit proposed changes to the PRC at least 90 days in advance for review to determine if they are just, reasonable, and compliant with statutory price caps, though caps may be exceeded in cases of extraordinary losses. Competitive products, such as Priority Mail parcels, face fewer restrictions, allowing USPS greater flexibility to set prices in competition with private carriers like UPS and . Post-PAEA, rate increases have become more frequent due to structural revenue declines from falling first-class mail volumes—down over 40% since peaking around —coupled with rising operational costs, necessitating hikes to maintain financial viability without taxpayer subsidies. Annual or semi-annual adjustments typically range from 2% to 7%, with market-dominant rates averaging 5-6% increases in recent years to cover inflation-driven expenses like labor and transportation. For example, effective July 13, 2025, First-Class Mail Forever stamps rose from 73 cents to 78 cents, while commercial Priority Mail rates increased by approximately 3.2% and USPS Ground Advantage by 3.9%. Pricing policies emphasize cost recovery over , reflecting USPS's obligation to deliver to all addresses at uniform rates, which imposes inefficiencies compared to competitors unbound by such mandates. Temporary surcharges, such as the 2025 holiday adjustments from October 5 to January 18 adding $0.90 to most flat-rate products and $1.45 to large flat-rate boxes, address seasonal volume surges in parcels amid growth. These measures aim to mitigate deficits exacerbated by fixed costs like retiree health pre-funding, but empirical data shows persistent net losses—$6.5 billion in 2023—indicating that rate hikes alone insufficiently offset volume shifts from letters to lower-margin packages. Criticism of these policies often centers on their frequency and perceived insufficiency in improving service standards, with some congressional observers attributing hikes to decisions amid declining on-time delivery rates below 90% for several products in 2023. However, causal analysis ties increases primarily to exogenous factors like (cumulative 20%+ since 2020) and legislative burdens, rather than discretionary excess, as PRC oversight constrains arbitrary . In parcels, where USPS holds no monopoly, rates remain competitive but have risen to fund network investments, with average shipping service increases of 6-7% proposed for mid-2025 to sustain against rivals.

Modernization and Reform Initiatives

Delivering for America Strategic Plan

The United States Postal Service unveiled the Delivering for America (DFA) plan on March 23, 2021, as a comprehensive 10-year aimed at restoring financial stability and enhancing service performance amid declining mail volumes and persistent operating losses. The plan projected break-even operations by fiscal year 2030 through a mix of revenue growth from package services, cost reductions via network consolidation, and $40 billion in self-funded investments in infrastructure, workforce training, and technology upgrades. It responded to statutory requirements under the of 2006, which had imposed burdensome retiree health benefit prefunding, while addressing competitive pressures from private carriers like UPS and . Core strategic goals included achieving 95% on-time delivery for First-Class Mail and Periodicals by the plan's end, expanding package revenue to offset letter mail declines, and modernizing processing and delivery s through regional distribution centers and automated sorting equipment. Key initiatives encompassed closing or consolidating underutilized facilities, shifting more mail processing to fewer high-volume hubs, and investing nearly $7.6 billion in a transformed to handle projected volume shifts, with mail and packages increasingly processed closer to destination points for efficiency. The plan also emphasized workforce development, including $1 billion for employee training and safety enhancements, while committing to no involuntary layoffs for career employees through agreements. Implementation began in 2021 with Postal Regulatory Commission approval of network changes in July 2021, leading to operational shifts such as the deactivation of some mail processing operations and the of over 60 new sorting facilities by 2024. By September 2024, USPS released DFA 2.0, refining goals amid execution challenges, including accelerated investments in electric vehicles and digital tools for revenue diversification. Financially, the plan targeted $34 billion in cumulative savings, but actual results through 2024 showed mixed progress: controllable losses decreased by $434 million year-over-year, with operating revenue rising $1.4 billion to $79.5 billion, partly from price hikes and package growth. However, transportation costs exceeded projections by 28% in FY2022 and 21% in FY2023, contributing to ongoing net losses exceeding $6 billion annually. Independent assessments highlighted implementation risks and suboptimal outcomes. The USPS Office of Inspector General (OIG) evaluated DFA's effects on service and costs, noting transportation savings of $1.3 billion in FY2024 but warning of potential service disruptions from network consolidations. The Postal Regulatory Commission (PRC) critiqued the plan in 2024-2025 analyses, finding that even full realization of projected savings would cover only about 4% of FY2024 operating expenses, urging revisions due to unmet like on-time delivery rates hovering below 90% for key categories in FY2023. These evaluations underscore causal factors such as volume declines from electronic substitution and regulatory constraints limiting pricing flexibility, rather than isolated execution flaws. Despite optimistic USPS reporting of 82% on-time for Periodicals in mid-2024, broader metrics indicate the plan has stabilized but not reversed structural deficits, with break-even ambitions deferred beyond initial 2023-2024 .

Technological and Network Upgrades

The United States Postal Service (USPS) has pursued network modernization as a core component of its Delivering for America (DFA) strategic plan, initiated in 2021 and updated as DFA 2.0 in 2024, with a $40 billion investment over ten years in infrastructure and operations. This includes $7.6 billion allocated specifically for redesigning the processing and delivery network into a hub-and-spoke model to handle shifting mail volumes, reduce transportation costs, and achieve 95% on-time service performance. Key facilities include approximately 60 planned Regional Processing and Distribution Centers (RPDCs) for originating mail and packages destined to other regions, with 13 operational by the end of 2024; around 180 Local Processing Centers (LPCs) for destinating mail to specific 3-digit ZIP codes, with 12 open by late 2024; and over 400 Sorting and Delivery Centers (S&DCs) to consolidate multiple delivery units, with more than 30 operational by the end of 2023 and 95 launched by February 2025. In 2025, USPS opened 11 new S&DCs in September and October to expand local aggregation and efficiency. Transportation optimizations support this structure by shifting volume from air to ground transport, insourcing routes to postal vehicles, and eliminating approximately 208,000 underutilized trips in 2023, yielding $112 million in savings and an additional $600 million from reduced air usage. These changes aim to cut overall transportation costs by $1 billion annually while improving truck utilization and resilience, alongside closing over 40 costly annexes and contracted facilities by the end of 2024. The redesigned network also facilitates integration of electric vehicles, targeting 75% of the delivery fleet by 2028, by providing larger facilities with enhanced space and parking. Technological upgrades focus on to boost processing capacity and reduce manual labor. USPS has deployed over 600 advanced package sorters since the DFA launch, including 614 state-of-the-art machines added across five years with 94 installed in alone, elevating daily package processing from 60 million to 88 million items. Specific systems include Single Induction Package Sorters (SIPS), which automate parcel induction to minimize handling and improve service performance, and next-generation sorters capable of high-speed processing via conveyor-fed . Earlier efforts incorporated 60 robotic rovers from Prime Vision in 2021 for rapid parcel unloading and sorting. Complementary IT investments upgrade enterprise systems for better tracking and analytics, supporting Mail Processing Facility Reviews to refine operations. Customer-facing technologies enhance accessibility and efficiency in retail lobbies, with 2,600 locations equipped with upgraded kiosks for weighing, labeling, and shipping as of 2025, reducing wait times, and 700 sites featuring smart lockers for package pickup. A new launched in 2025 allows users to manage mail digitally, including notifications and previews. These initiatives, part of broader lobby redesigns, integrate streamlined layouts and to streamline government services and options.

Sustainability Efforts and Electrification

The United States Postal Service (USPS) established sustainability targets in February 2024, aiming to reduce Scope 1 and Scope 2 by 40 percent and Scope 3 emissions by 20 percent by 2030, using 2021 as the baseline year. These goals encompass three pillars: through emissions management and fleet ; practices emphasizing source reduction, reuse, and ; and environmental awareness via employee training and incentives. Additional measures include prioritizing surface transportation over air for shorter routes to lower aviation-related emissions and increasing procurement to 10 percent of total usage by 2030. Electrification forms a core component of USPS climate efforts, integrated into the Delivering for America plan. In December 2022, USPS announced intentions to acquire at least 66,000 battery-electric delivery vehicles by 2028, with all new vehicle purchases shifting to zero-emission models by 2026. This includes up to 9,250 next-generation vehicles from Oshkosh Defense under a $6.4 billion contract, supplemented by commercial off-the-shelf electric vehicles from Ford and others, totaling around 106,000 new vehicles with 66,000 electric. By January 2024, USPS deployed its first electric vehicle charging stations and began limited electric delivery vehicle operations. Progress toward these targets has encountered delays and operational hurdles as of 2025. Deployment of the Oshkosh vehicles, originally slated for widespread rollout starting in 2023, faced production setbacks, prompting congressional inquiries into contract timelines. USPS planned a 50-50 mix of electric and gas-powered purchases for 2025, but a U.S. Postal Service audit highlighted missed opportunities for federal incentives on electric vehicles and charging , potentially increasing costs. Political debates have intensified, with Republican lawmakers proposing to eliminate federal subsidies for the electric fleet in bills, citing high costs exceeding $9 billion and questioning long-term savings amid reliability concerns. Despite these challenges, USPS affirmed in October 2025 its commitment to the 66,000 electric vehicle target to enhance efficiency and reduce emissions.

Challenges, Criticisms, and Debates

Service Reliability and Delays

The United States Postal Service has experienced fluctuating on-time delivery performance in recent years, with First-Class Mail averaging 85-87% on-time delivery against service standards in 2023 and 2024, while Priority Mail hovered around 88-90%. During the 2024 peak holiday season, overall on-time performance fell to 90.4%, a decline from 96.5% in 2023, despite lowered service targets for several categories. In 2025, the USPS further reduced on-time goals for First-Class Mail (from 92.5% to 90%) and other services, reflecting ongoing challenges in meeting prior benchmarks, with the agency failing to achieve any of its four core performance goals in 2024. Delays have been exacerbated by the implementation of the Delivering for America plan, which involves consolidating processing facilities and shifting mail flows, leading to transportation disruptions such as the cancellation of 13,875 scheduled trips during the 2025 peak and post-peak periods. USPS Office of Inspector General (OIG) audits have identified systemic processing inefficiencies, including inadequate staffing, equipment failures, and inaccurate delay reporting, as primary causes; for instance, a June 2025 audit in , uncovered 112,864 pieces of delayed mail at a distribution center due to bottlenecks in sorting operations. Similar findings emerged from audits in (2021), where significant delays stemmed from improper carrier practices and underreported metrics, and (2025), confirming widespread operational failures at regional processing centers. Rural and urban areas show minimal differences in on-time performance, per a 2023 Government Accountability Office analysis, but overall reliability suffers from volume surges, weather events, and labor constraints, with Periodicals mail in 2025 Quarter 1 achieving only 88.4% delivery within the standard plus one day. These issues have prompted congressional scrutiny, including calls for audits of specific facilities like Jacksonville's Regional Processing and Distribution Center, where Delivering for America transitions have correlated with persistent backlogs. Despite self-reported improvements in average transit times since 2021, independent evaluations highlight that granular service standards introduced in 2025—tied to 5-digit ZIP Codes—have not fully mitigated delays from network reconfigurations.

Monopoly Inefficiencies and Competition Pressures

The United States Postal Service maintains a statutory monopoly on the delivery of non-urgent letters weighing 12.5 ounces or less, enforced through the Private Express Statutes, which restrict private carriers from competing in this segment unless they charge at least twice the USPS rate or meet urgency exceptions. This legal protection, valued at $5.45 billion in fiscal year 2015 according to Government Accountability Office estimates, aims to fund obligations but has been linked to operational inefficiencies by limiting market discipline on costs and service quality. Economic critiques contend that the monopoly sustains distorted rate structures, where high-volume, low-margin services like first-class mail subsidize others without competitive pressure to optimize, contributing to persistent financial losses exceeding $90 billion cumulatively since 2007. In the monopolized letter mail sector, USPS exhibits higher per-unit costs and slower adaptation compared to private alternatives where permitted, as evidenced by private carriers' superior transit times and tracking capabilities in overlapping express services. For example, analyses highlight USPS's bureaucratic structure and union constraints as amplifying inefficiencies, with labor costs comprising over 80% of total expenses versus lower ratios at competitors like UPS and , which benefit from flexible workforce models. The monopoly also incentivizes cross-subsidization, where revenues from protected letter mail—historically funding network infrastructure—underwrite below-market parcel pricing, distorting competition and delaying internal reforms. Digital substitution has intensified pressures on the monopoly, with first-class mail volume peaking at 99 billion pieces in fiscal year 2006 before declining 51% to approximately 48.5 billion by 2024, largely due to email, online billing, and electronic communications replacing physical correspondence. This structural shift erodes the monopoly's revenue foundation, as advertising and transactional mail—key components—have fallen even faster, with first-class advertising mail dropping disproportionately to marketing mail alternatives. Projections indicate a further 32% volume reduction by 2035, forcing USPS to seek rate hikes averaging 5-6% annually while competitors innovate in e-commerce logistics. Parcel competition from UPS, FedEx, and emerging regional carriers has compelled USPS to capture market share through aggressive pricing—often 25-60% below rivals for small packages—resulting in parcel volume growth to over 7 billion pieces annually by 2023, offsetting some letter mail losses. However, this reliance exposes vulnerabilities, including dependence on private partners for air and ground transport and vulnerability to rivals' efficiency gains, such as UPS's optimized networks handling higher volumes at lower unit costs. USPS lost its express mail monopoly in 1979, enabling private entry that now claims over 70% of the overall package market, pressuring USPS to modernize amid debates over whether monopoly remnants hinder full competitiveness.

Privatization Proposals and Alternatives

Proposals to privatize the United States Postal Service (USPS) have periodically emerged since the , often driven by concerns over mounting financial losses and perceived inefficiencies in its government-operated model, which includes a statutory monopoly on letter mail delivery. Advocates, including libertarian think tanks, contend that would introduce market competition, allowing for cost reductions through streamlined operations and elimination of obligations that require delivery to remote areas at uniform rates. For instance, the has argued that ending the USPS monopoly could foster a competitive postal industry, potentially lowering taxpayer exposure—despite the USPS being self-funded through revenue rather than appropriations—and improving service innovation akin to private carriers like UPS and . However, no comprehensive legislation has passed , with efforts stalling amid opposition from labor unions and rural constituencies fearing service disruptions. In recent years, privatization discussions resurfaced during Donald Trump's first presidency (2017–2021), where administration officials explored structural reforms but abandoned full privatization due to logistical and political hurdles, including the need for congressional approval to alter the USPS's independent agency status under the . President-elect Trump revived the idea in December 2024, stating privatization was "again under consideration" to address ongoing deficits, projected to exceed $9 billion annually without reforms, though critics noted that prior attempts failed to materialize into policy. A 2025 analysis outlined a potential framework for privatization, suggesting it could benefit parcel competitors like by raising USPS rates—currently 25–60% below market for some services—and enabling selective service cuts, but warned of transitional risks such as workforce reductions affecting over 600,000 employees. Opponents, including a bipartisan group of 159 members in March 2025, argued that privatization would undermine , leading to higher costs for low-volume rural routes and potential fragmentation of the national network that handles over 120 billion pieces of mail yearly. Empirical evidence from international cases, such as the United Kingdom's partial of in 2013, shows mixed outcomes: stock value initially surged but later declined amid strikes and service complaints, with universal obligations retained via regulation rather than alone. Domestically, studies indicate could exacerbate USPS losses if competitors cherry-pick profitable urban routes, leaving subsidized rural delivery unviable without government backstops, as private firms lack the scale or mandate for nationwide coverage. Congressional resolutions in 2025, including H.Res. 70 and S.Res. 147, explicitly opposed , emphasizing the USPS's role in and commerce without taxpayer subsidies, reflecting skepticism that market entry alone resolves structural issues like the 2006 Postal Accountability and Enhancement Act's retiree health pre-funding mandate, which imposed $5.5 billion annual payments unrelated to cash operations. Alternatives to full privatization focus on targeted reforms to enhance efficiency while preserving public oversight. The Cato Institute proposes incremental steps, such as closing underutilized post offices (over 13,000 since 2012), relaxing collective bargaining constraints under the 1970 Act, and ending cross-subsidies where first-class mail revenues fund less profitable services, potentially generating $2–3 billion in annual savings. Other suggestions include greater pricing flexibility for competitive products like parcels, where USPS already loses market share to private rivals, and public-private partnerships for logistics, as seen in existing contracts for last-mile delivery. Reform advocates argue these measures address causal drivers of deficits—declining mail volume from digital substitution (down 40% since 2007) and regulatory burdens—without risking service gaps, contrasting with privatization's potential for higher consumer prices and reduced access in non-profitable areas. Such alternatives align with the USPS's self-sustaining mandate, avoiding the need for a federal bailout that privatization proponents claim to prevent, though evidence shows losses stem more from mandated obligations than inherent unprofitability.

Political Interventions and Electoral Impacts

The United States Postal Service operates under , with influencing its operations through legislation, appropriations for specific services, and periodic financial interventions, despite the agency's self-funding mandate established by the of 1970. The 2006 , enacted bipartisansly, required USPS to prefund retiree health benefits over 10 years at a cost exceeding $5.5 billion annually, a requirement unique among federal entities and criticized for exacerbating deficits without corresponding revenue adjustments. In response to impacts, provided a $10 billion loan via the in March 2020, followed by the 2022 Postal Service Reform Act, which shifted retiree health funding to Medicare integration and authorized $50 billion in borrowing, alleviating approximately $107 billion in long-term liabilities. These measures reflect partisan dynamics, with Democrats advocating expanded subsidies—such as a proposed $25 billion infusion in 2020 relief bills—and Republicans emphasizing fiscal independence and efficiency reforms. Executive interventions have intensified scrutiny, particularly during the Trump administration's 2020 appointment of as , a major GOP donor whose prior logistics firm received USPS contracts. DeJoy implemented cost-saving changes, including reduced overtime, deferred equipment maintenance, and decommissioning high-speed sorting machines at select facilities, which coincided with delays amid surging volume. Critics, including Democratic lawmakers and civil rights groups, filed lawsuits alleging intent to hinder mail-in voting, prompting a federal judge in 2022 to rule certain pre- changes unlawful for bypassing required consultations. DeJoy suspended the policies in August 2020 amid bipartisan congressional pressure and public outcry, asserting they aimed at efficiency rather than electoral sabotage. Historical precedents include 19th-century under President , curtailed by the 1883 Pendleton Act, and underscore USPS's vulnerability to politicization despite statutory independence. USPS's handling of election mail—ballots, voter registrations, and political content—directly influences and turnout, processing over 99 million pieces in alone with average delivery times of under two days. In , amid expanded mail voting due to the , USPS delivered returned ballots to officials in an average of 1.6 days, achieving on-time performance superior to regular First-Class Mail, per audits, though isolated delays fueled partisan disputes. President Trump publicly linked USPS funding opposition to unsubstantiated concerns with , while Democrats accused operational shifts of disenfranchising voters; empirical data indicated negligible widespread impact on certified results. The prohibits USPS employees from using official authority to interfere in elections or solicit contributions, enforced by the Office of , which investigates complaints of partisan activity. Ongoing network consolidations under the Delivering for America plan have renewed concerns about potential delays in future cycles, prompting election officials to urge early mailing. These episodes highlight how USPS reliability intersects with voting access debates, often amplifying divisions over mail-in expansion without altering core delivery outcomes.

Security and Enforcement

Postal Inspection Service Role

The (USPIS) serves as the primary enforcement arm of the United States Postal Service (USPS), tasked with enforcing over 200 federal statutes that protect the integrity of the postal system, its employees, infrastructure, and customers. Established as the nation's oldest enforcement agency, with roots tracing to Benjamin Franklin's precedents in the colonial period and formal development by under William Goddard, the USPIS has evolved to hold nationwide jurisdiction over crimes affecting the , including , , and prohibited mailings. Its inspectors, who carry badges and firearms, possess full powers to make arrests, execute search warrants, serve subpoenas, and prosecute offenders in coordination with U.S. attorneys and other agencies. Core responsibilities encompass investigating a wide array of postal-related offenses, such as and , , fraud schemes, , cybercrimes exploiting the postal network, child exploitation materials sent via , and the shipment of illegal narcotics like opioids. The service also prioritizes threats to postal , including suspicious containing hazardous substances or explosives, assaults and robberies targeting postal employees or vehicles, and organized criminal enterprises that undermine operations. In addition to investigations, USPIS maintains a dedicated Postal Police force that provides 24/7 armed for high-value post offices, processing facilities, and transport vehicles, ensuring physical protection amid rising incidents of violence against USPS personnel. Enforcement outcomes demonstrate the agency's operational impact: in fiscal year 2023, USPIS efforts led to 1,559 arrests of suspected mail thieves, the initiation of 1,197 new investigative cases, and 1,210 convictions related to postal crimes. Beyond reactive policing, the service engages in proactive measures, including intelligence sharing with partners like U.S. Customs and Border Protection for intercepting illicit imports, community outreach to prevent fraud, disaster response to secure mail during crises, and international collaboration through the Universal Postal Union to uphold global mail security standards. These functions collectively safeguard the USPS's monopoly on letter mail delivery while addressing vulnerabilities in an era of increased e-commerce volume and associated criminal risks.

Internal Audits and Fraud Prevention

The United States Postal Service maintains an Office of Inspector General (OIG) responsible for conducting internal audits to evaluate financial, operational, and program integrity, with a focus on detecting and preventing fraud, waste, and abuse. The OIG's Office of Audit performs these reviews, issuing over 160 reports annually across program areas such as and service performance, recommending improvements to internal controls and safeguarding procedures. In 2024, the OIG's independent of USPS reclassified identified a material weakness in internal controls over related to certain service offerings, prompting management to implement remediation plans. Audits of operational areas, such as 24 mail plants conducted during 2023 and 2024, revealed persistent deficiencies including inaccurate delayed reporting, untimely outbound trips, and non-compliance with and security protocols, leading to recommendations for enhanced oversight and training. Fraud prevention efforts include the use of analytic tools like "tripwires" to flag financial anomalies in areas such as management and , as demonstrated in a 2016 of segmented at facilities like Houston's Long Point Station, which identified control gaps enabling potential . The OIG's investigations have recovered significant funds, including over $350,000 in a 2025 case involving inflated invoices, with $187,000 directly benefiting USPS through debarment of the offender and contract safeguards. Semiannual reports to document investigative outcomes, such as joint operations yielding arrests and monetary recoveries exceeding $400 million in prior periods, underscoring the deterrent effect on internal misconduct. To mitigate risks, USPS employs policies for financial controls, employee training on and reporting hotlines, and collaboration with the Postal Inspection Service for broader , though internal audits have highlighted ongoing vulnerabilities in high-volume operations like mail processing. These measures aim to ensure , but findings indicate that implementation gaps persist, contributing to elevated internal trends, with serious cases against postal workers doubling from about 600 in 2019 to nearly 1,200 in 2023.

References

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