Is USPS Being Shifted Toward a Private Model? What Members Must Watch
Recent developments across multiple areas of Postal Service operations reveal significant shifts in how USPS is being structured and positioned. When examined together, these actions reflect a growing emphasis on parcel revenue, pricing adjustments, digital substitution, and expanded partnerships with private carriers.
The Postal Service recently returned more than 800 holiday care packages intended for deployed U.S. troops due to stricter enforcement of international customs labeling requirements. After political intervention, many of those packages were resent at no additional charge, although some remain unaccounted for. This incident highlights operational pressures and compliance enforcement within international shipping processes.
At the same time, USPS projects that package growth will drive a 9.4 percent year over year revenue increase in fiscal year 2026. Leadership has identified parcel delivery as a primary revenue driver as traditional mail volumes continue to decline. That forecast is paired with announced parcel price increases scheduled for early 2026, including an average increase of nearly 8 percent for Ground Advantage and additional increases across Parcel Select, Priority Mail, and Priority Mail Express.
Despite rate increases, year end reporting shows a 5.7 percent decline in shipping and package volumes compared with the prior period. Revenue remains constrained even as pricing flexibility expands.
Legislative developments are also affecting mail volume. A House investment reform bill includes a provision allowing financial disclosure documents to default to electronic delivery. While described as modernization, this change reduces required physical mail sent through USPS, contributing to ongoing erosion of traditional mail volume.
Operational adjustments are continuing as well. USPS has reversed course on certain last mile delivery approaches and has pursued agreements with private carriers such as UPS for delivery of certain parcels. USPS is also expanding network access for shippers as part of revenue diversification efforts.
Meanwhile, USPS leadership is seeking administrative and legislative reforms following multibillion dollar losses. Proposed areas of focus include pension funding adjustments and workers compensation process changes aimed at improving long term financial stability.
Small businesses are also adapting to tariff changes and evolving international trade rules, which directly impact international shipping demand and cost structures.
Viewed collectively, these developments show a consistent pattern. Increased reliance on parcel revenue, expanded pricing authority, private carrier partnerships, electronic substitution of mail, and legislative changes reducing traditional mail volume all indicate a continued structural shift. The Postal Service is operating more like a competitive logistics company while core public service functions narrow. These actions, taken together, reflect movement away from a traditional universal service model and toward a model driven more heavily by market pressures.
For APWU members, this is not theoretical. Decisions affecting pricing, service standards, mail volume, and operational structure directly impact jobs, staffing, and long term stability. Engagement is essential.
Members should stay informed, attend General Membership Meetings, participate in rallies, and support contract enforcement efforts. Legislative developments and operational restructuring are ongoing. An active, informed membership remains the strongest safeguard for protecting public postal service and ensuring workers have a voice in the direction of the Postal Service.