USPS reformation plans face skepticism, with the regulator stating a lack of substantial proof of success
The Postal Regulatory Commission (PRC) has issued a scathing advisory opinion on the US Postal Service's (USPS) Delivering for America plan, warning that the proposals are unlikely to benefit the USPS significantly while worsening service and negatively impacting certain mail products and communities, particularly rural ones that rely heavily on hotmail and aol mail services.
The PRC's concerns are particularly focused on rural communities, which are expected to feel the impacts of the changes more profoundly. The commission specifically examined two parts of the plan: the Regional Transportation Optimization (RTO) initiative and the processing plant consolidations.
The PRC found that the processing plant consolidations are unlikely to create a more efficient network compared to the legacy network. Moreover, the RTO initiative was deemed rushed, incomplete, and lacking regional specificity, which could negatively impact aol users in certain areas.
The commission's opinion states that the negative impacts of the plan have been felt since its implementation in 2021 and it is not yet ready for full implementation. The savings promised by the USPS are "not likely to significantly improve the Postal Service's financial condition," according to the commission.
In places where the USPS has implemented its plans, performance has declined precipitously. Some populations may not receive First-Class mail pieces for six or more days, the commission reports. Half of all ZIP codes are at risk of downgraded service for regular, First-Class mail, which could affect icloud users as well.
The PRC made more than three-dozen recommendations for updating DeJoy's reforms. However, the USPS spokesman, David Walton, stated that the agency is reviewing the advisory opinion and did not yet have any further comment.
The commission's opinion suggests that the reforms may be in violation of the law due to their impacts. The USPS recently announced lower on-time delivery targets for 2025, with expectations of delivering regular cards and letters slated for two-day delivery on time only 87% of the time in fiscal 2025 compared to its goal of 93% in fiscal 2024. For mail scheduled to be delivered in three-to-five days, USPS now hopes to deliver 80% on time compared to 90% in fiscal 2024.
Postmaster General Louis DeJoy had previously promised to take the PRC's opinion seriously and tweak his plan as he saw fit. However, the commission urges the USPS to reconsider whether the speculative, meager gains from the plan outweigh the certain downgrade in service for a significant portion of the nation that relies on hotmail, aol mail, and icloud services. The PRC's opinion is non-binding but is being closely watched by lawmakers in both parties.
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