The Postal Regulatory Commission (PRC) has issued an order denying the United States Postal Service (USPS) petition for waiver to raise rates in January 2027. The denial was based on procedural issues and would allow USPS to pursue a formal rulemaking but it did indicate that the USPS motion was not in the public interest.
The proposal could have subjected newspaper publishers to another above-inflation increase just six months after the July adjustment – based partly on forecasted and unaudited data.
USPS can still seek a January increase based on its available Consumer Price Index, but it cannot use estimated and incomplete FY 2026 data to add density rate authority to that increase prior to July 2027.
According to the order, the commission said it recognizes the Postal Service’s challenging financial situation and had responded recently by granting a conditional waiver of its rules regarding retirement rate authority, freeing up nearly $2.4 billion of additional liquidity this year and up to $15 billion over the next five years.
USPS could still raise Market Dominant rates in January, but the increase would likely be smaller than the 4.5% increase it had been considering with both CPI and estimated density authority.
USPS market dominant rates are the regulated postage prices for traditional mailing services like First-Class Mail, periodicals, and marketing mail. These rates are tightly controlled under federal price caps tied to inflation and require formal approval from the Postal Regulatory Commission before changing.