By Alex Zamorski | July 8, 2016
Recently, The U.S. House Committee on Oversight and Government Reform released their draft of the Postal Service Reform Act of 2016. This new postal reform is largely an echo of the 2013 Act, however there are four potential key reforms that direct marketers, nonprofit organizations, and political committees need to know about to adapt their programs.
Increase postal rates by 2.15%, which will raise First Class stamps to 48-cents. This will largely serve to balance out the 2-cent rate reduction we saw in April 2016.
Eliminate state and national political committees’ eligibility for non-profit mail rates. As direct marketers who work with many political committees, this is an area that The Lukens Company Political will be keeping a close eye on as the regulations progress.
Require ‘voluntary conversion’ to centralized mail boxes for residential and business addresses. By encouraging residential areas to move from individual to clustered mail boxes, it will save the USPS an estimated $5-billion over the next 10 years.
Raise rates on ‘loss-making monopoly products’, such as Standard Mail Flats and 9 other products. There is discussion that these types of products create an unfair advantage against FedEx, UPS, and other non-USPS carriers.
This bill has yet to be introduced to Congress but considering the enormous deficit in which the USPS operates, it will not be surprising if many of these changes begin to be enacted in 2017.
To read the full summary of the Postal Service Reform Act of 2016, click here.
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