Proposed → Final Rule Diff

SUMMARY: The Commission sets a deadline for interested persons to request, by petition in the instant proceedings, that the Commission consider specific proposals for modifications to the ratemaking system or for an alternative system.

SUMMARY: The Commission revises its rules to restrict the Postal Service from increasing rates above the de minimis threshold for Market Dominant products more than once per fiscal year (through fiscal year 2030) and to restrict the Postal Service from setting workshare discounts farther away from their avoided costs. These revisions aim to support a system design that achieves the statutory objectives, considering the statutory factors.

SUPPLEMENTARY INFORMATION: Table of Contents I. Introduction II. Background III. Procedural Order IV. Ordering Paragraphs I. Introduction The Commission sets a deadline for interested persons, in accordance with 39 CFR 3010.201(b), to request, by petition in the instant proceedings, that the Commission consider specific proposals for modifications to the ratemaking system or for an alternative system. The deadline for such petitions is 30 days after the date of publication of this Order in the Federal Register . On December 22, 2025, the Postal Service filed two petitions. United States Postal Service Petition for Rulemaking to Repeal the Minimum Remittance Payment Requirement, December 22, 2025; United States Postal Service Petition for Rulemaking to Modify the Market-Dominant Ratemaking System to Achieve Objectives 5 and 8, December 22, 2025 (Postal Service Petitions). Responses to any petition (including the Postal Service Petitions) shall be due 44 days after the date of publication of this Order in the Federal Register . II. Background On April 5, 2024, the Commission initiated Docket No. RM2024-4 to review the Ratemaking System to determine whether the ratemaking system is achieving the objectives appearing in 39 U.S.C. 3622(b), taking into account the factors in 39 U.S.C. 3622(c). 1 This docket incorporated several other related dockets including RM2021-2, the Commission's examination of a potential Performance Incentive Mechanism. After notice and opportunity for public comment, the Commission determined that the ratemaking system is not achieving such objectives, taking into account such factors. 2 1 Advance Notice of Proposed Rulemaking on the Statutory Review of the System for Regulating Rates and Classes for Market Dominant Products, April 5, 2024 (Order No. 7032). 2 See Order Presenting Findings on the Statutory Review of the System for Regulating Rates and Classes for Market Dominant Products (Phase 1 Completion), June 9, 2025 (Order No. 8891). On June 9, 2025, the Commission indicated that it would “proceed using a phased approach to consider modifications necessary to achieve the statutory objectives.” 3 The Commission stated that, under this approach, it “expects to issue multiple notices of proposed rulemaking.” Order No. 8892 at 2. Among other things, the Commission provided guidance for proposals by interested persons. See id. at 5. The Commission noted that “[i]nterested persons, in accordance with [39 CFR 3010.201] and other applicable procedural rules, may request, by petition, that the Commission consider specific proposals for modifications to the R[at]emaking System or for an alternative system.” Id. The Commission subsequently reiterated this guidance. 4 3 Procedural Order on Phased Rulemaking, June 9, 2025, at 1-2 (Order No. 8892). 4 See Order Denying Motions for Reconsideration, July 24, 2025, at 31-32 (Order No. 9042). Also on June 9, 2025, the Commission issued Order No. 8893, the first such notice of proposed rulemaking, and initiated Phase 2(a) of the instant proceedings. 5 Various commenters filed comments in response to Order No. 8893. 6 Of these, several commenters expressed interest in further information about next steps in the instant proceedings or advocated that certain topics be considered in the next phase of the instant proceedings. 7 5 Notice of Proposed Rulemaking on the Statutory Review of the System for Regulating Rates and Classes for Market Dominant Products (Phase 2a Initiation) (Order No. 8893). 6 Order Adopting Rules Limiting Frequency of Rate Increases Above the de minimis Threshold and Adding Criteria for Workshare Discounts for Market Dominant Products (Phase 2a Completion), January 13, 2026, at Section VII (Order No. 9426) (identifying comments). 7 See id. (considering comments); Comments of Alliance of Nonprofit Mailers, July 28, 2025, at 13 (“ask[ing] the Commission to propose further modifications that restrain the magnitude of the Postal Service's pricing authority as soon as possible”); Comments of the Greeting Card Association on Order No. 8893, July 28, 2025, at 8 (“The Commission, however, should include in the next phase of this rulemaking an initiative to do away with the density-based pricing authority.”); United States Postal Service Reply Comments in Response to Order No. 8893, August 7, 2025, at 28 (commenting that the Commission should proceed to considering the ratemaking system's “failure . . . to provide adequate revenues for financial stability and to uphold the Postal Service's financial integrity”); cf. Comments of the Association for Postal Commerce, July 28, 2025, at 2, 8-10 (suggesting consideration of density rate authority). On January 13, 2026, the Commission finalized the rules proposed in Order No. 8893. See Order No. 9426. In doing so, the Commission declined to provide further information about next steps in the instant proceeding. Id. at Section VII. The Commission observed that interested persons still might submit proposals for rule changes, and the Commission was not able to predict the content of any such proposals that may be submitted. Id. However, the Commission also stated that interested persons had had several months in which to prepare proposals, and commenters expressed interest in the next steps in the instant proceedings. Id. Consequently, the Commission stated that it would set a deadline for the submission of such proposals in the instant proceedings by procedural order. Id. The Commission now issues this procedural order. III. Procedural Order Petitions under 39 CFR 3010.201(b)(1) for modifications of the ratemaking system, or for adoption of an alternative system, pursuant to 39 U.S.C. 3622(d)(3) in the instant proceedings are due no later than 30 days from the date of publication of this Order in the Federal Register . Any person may file such a petition. See 39 CFR 3010.201(b)(1). Petitions must provide all of the information specified by 39 CFR 3010.201(b)(1)(i) through 39 CFR 3010.201(b)(1)(v). The Commission will consider complete, timely-filed petitions in the instant proceedings. 8 Responses to any petition (including the Postal Service Petitions) shall be due 44 days from the date of publication of this Order in the Federal Register . 8 Nothing in this Order restricts any person from petitioning the Commission under 39 CFR 3010.201(b)(1) at any time. However, petitions that do not comply with the deadline established in this Order, or that do not contain information required by 39 CFR 3010.201(b)(1), should not be expected to be considered as part of the instant proceedings. On October 16, 2025, the Greeting Card Association (GCA) filed an Additional Suggestion, which, in its view, “may . . . be deemed a [39 CFR 3010.201(b)(1)] petition.” Docket No. RM2024-4, et al., Additional Suggestion, October 16, 2025, at 1 (GCA Additional Suggestion); see id. at 4. However, the GCA Additional Suggestion does not include specific proposals, including specific language, in regard to the subject matter of the GCA Additional Suggestion. See 39 CFR 3010.201(b)(1)(iii). In addition, GCA is reminded of its obligation to comply with Rule 124(c) of the rules of practice, which provides that the title of a document filed with the Commission “shall identify each participant on whose behalf the filing is made . . . .” 39 CFR 3010.124(c). Upon consideration of such petitions, the Commission plans to issue a notice and order establishing one or more new phases of the instant proceedings to address any changes proposed in such petitions that the Commission, in its discretion, decides to pursue and such additional proposals as the Commission may make. See 39 CFR 3010.201(b)(2). The Commission intends to expedite consideration of such proposals. In addition, before closing this docket, the Commission will explain any decision to reject or defer consideration of a petition. See id. IV. Ordering Paragraphs It is ordered: 1. This Order, or abstract thereof, shall be published in the Federal Register . 2. The deadline for interested persons, in accordance with 39 CFR 3010.201(b), to request, by petition in the instant proceedings, that the Commission consider specific proposals for modifications to the ratemaking system or for an alternative system is no later than 30 days from the date of publication of this Order in the Federal Register . 3. Responses to any petition (including the Postal Service Petitions) shall be due 44 days from the date of publication of this Order in the Federal Register . By the Commission. Mallory S. Richards, Attorney-Advisor.

SUPPLEMENTARY INFORMATION: Table of Contents I. Background II. Basis for Final Rules III. Final Rules I. Background On April 5, 2024, the Commission issued an Advance Notice of Proposed Rulemaking seeking comments on the Commission's review of the system for regulating rates and classes for Market Dominant products (ratemaking system). 1 In Order No. 8891, the Commission determined that the system for regulating rates and classes for Market Dominant products was not achieving the objectives appearing in 39 U.S.C. 3622(b), taking into account the factors in 39 U.S.C. 3622(c) and has determined to undertake a phased approach to considering modifications necessary to achieve the statutory objectives. 2 1 Advance Notice of Proposed Rulemaking on the Statutory Review of the System for Regulating Rates and Class for Market Dominant Products, April 5, 2025 (Order No. 7032). 2 Order Presenting Findings on the Statutory Review of the System for Regulating Rates and Classes for Market Dominant Products (Phase 1 Completion), June 9, 2025 (Order No. 8891); Procedural Order on Phased Rulemaking, June 9, 2025 (Order No. 8892). On June 9, 2025, the Commission announced its consideration of and sought public comment on two proposed revisions to the ratemaking system for Phase 2(a) of this proceeding. 3 After considering comments, the Commission finalizes both revisions with minor alterations. 3 See generally Notice of Proposed Rulemaking on the Statutory Review of the System for Regulating Rates and Classes for Market Dominant Products (Phase 2A Initiation), June 9, 2025 (Order No. 8893); see also Order No. 8892 at 4. II. Basis for Final Rules Pursuant to 39 U.S.C. 503 and 3622, the Commission adopts the rules proposed in Order No. 8893 with minor alterations as discussed below. Both revisions are necessary to address areas that frustrate the ability of the ratemaking system to achieve the statutory objectives found in 39 U.S.C. 3622. Balancing the statutory objectives and considering the statutory factors has required the Commission to consider the necessary tradeoffs in designing the system. The Commission adopts both revisions in Phase 2(a) because they are comparatively simpler needed changes to the system and important first steps aimed at achieving relevant statutory objectives in conjunction with each other. III. Final Rules First, the Commission will restrict the Postal Service from adjusting rates of general applicability for Market Dominant products more than once per fiscal year, unless such rate adjustment filings only include rate decreases or are de minimis rate increases. The Commission adjusts the implementation period to March 1, 2026 through September 30, 2030. The Commission considers the Postal Service's claims regarding any potential negative impacts to the achievement of Objectives 4, 5, and 8 to be overstated and outweighed by the beneficial effects to the achievement of Objectives 1, 2, and 6, and considers Factors 3, 7, 12, and 14. See generally 39 U.S.C. 3622(b) and (c). Therefore, on balance, the Commission finds adopting the rule change to be beneficial and a necessary modification to the ratemaking system's design. Second, the Commission corrects a regulatory gap to ensure that workshare discounts remain as close to avoided costs as possible. The Commission adjusts the existing rule governing application for waiver to allow the Postal Service to seek waiver of the new workshare discount rule under limited circumstances. As amended, the final rule balances the statutory objectives by advancing the goals of Objectives 1, 2, and 5, while continuing to allow pricing flexibility under Objective 4. The benefits of adopting this rule change outweigh the minimal limitations on the Postal Service's pricing flexibility—especially considering the expansion of the waiver process. Consideration of Factors 5, 7, 12, and 14 also supports adopting this rule change. See generally 39 U.S.C. 3622(b) and (c). List of Subjects in 39 CFR Part 3030 Administrative practice and procedure, Fees, Postal Service. For the reasons stated in the preamble, the Commission amends 39 CFR part 3030 as follows: PART 3030—REGULATION OF RATES FOR MARKET DOMINANT PRODUCTS 1. The authority citation for part 3030 continues to read as follows: Authority: 39 U.S.C. 503; 3622. 2. Add § 3030.103 to read as follows: § 3030.103 Implementation of rate adjustments. (a) Except as described in paragraph (b) of this section, effective March 1, 2026, through September 30, 2030, the Postal Service may not adjust rates of general applicability for Market Dominant products using the rate authorities provided under subparts C through H of this part more than one time each fiscal year. (b) Rate adjustment filings that only include rate decreases calculated pursuant to § 3030.244 or are de minimis rate increases compliant with § 3030.129 are not subject to paragraph (a) of this section. 3. In § 3030.282, add paragraph (d) to read as follows: § 3030.282 Increased pricing efficiency. (d) No proposal to adjust a rate associated with a workshare discount may increase the absolute value of the difference between the workshare discount and the cost avoided by the Postal Service for not providing the applicable service, unless it is set in accordance with a Commission order issued pursuant to § 3030.286. 4. In § 3030.286, revise paragraphs (a) and (b) to read as follows: § 3030.286 Application for waiver. (a) In every instance in which the Postal Service determines to adjust a rate associated with a workshare discount in a manner that does not comply with the limitations imposed by §§ 3030.282(d) and 3030.283 through 3030.284, the Postal Service shall file an application for waiver. The Postal Service must file any application for waiver at least 60 days prior to filing the proposal to adjust a rate associated with the applicable workshare discount. In its application for waiver, the Postal Service shall indicate the approximate filing date for its next rate adjustment filing. (b) The application for waiver shall be supported by a preponderance of the evidence and demonstrate that a waiver from the limitations imposed by §§ 3030.282(d) and 3030.283 through 3030.284 should be granted. Preponderance of the evidence means proof by information that, compared with that opposing it, leads to the conclusion that the fact at issue is more probably true than not. By the Commission. Commissioner Ann C. Fisher dissenting. Mallory S. Richards, Attorney-Advisor.

I. Introduction II. Background III. Procedural Order IV. Ordering Paragraphs

I. Background II. Basis for Final Rules III. Final Rules