USPS has submitted its July 2026 rate case to the Postal Regulatory Commission. If approved, the new rates will take effect July 12, 2026. The overall increases are similar to what we have seen in recent years, but several structural and promotional changes could have a real impact on how mailers plan and execute campaigns. Keep reading to see the proposed changes and how they may impact mailers.
Marketing Mail Changes Continue to Reward Logistics Strategy
Marketing Mail letters and flats are expected to increase by about 5-6% for commercial mail. Nonprofit increases will be lower, depending on presort level.
The bigger story is USPS continuing to prioritize operational efficiency. Mailers that prepare and enter mail deeper into the network will benefit the most. Drop ship and commingling strategies remain important; discounts for Sectional Center Facility (SCF) entry are increasing, and the pricing gap between three digit and five digit presort levels is getting wider. In simple terms, the more refined your sort and the closer you enter mail to its final destination, the more you can save.
Flats Get More Flexibility With Weight Changes
One key update is the increase in the maximum weight for Marketing Mail flats, from 16 ounces to 20 ounces. This gives mailers more room to include additional content without pushing pieces into parcel pricing.
USPS is also adding a new Heavy Printed Matter category for Marketing Mail parcels up to 15 pounds. This applies to parcels that primarily contain printed materials, such as large catalogs. For some mailers, this could create a more cost effective option for heavier pieces that no longer qualify as flats.
Catalog Promotion Scales Back
The current 10% Catalog Promotion will end June 30, 2026, and will be replaced with a much smaller incentive of $0.001 per piece. While catalogs will still qualify for a discount, the financial benefit will be significantly reduced. Mailers should revisit and determine if participation still makes sense for future campaigns.
Periodicals Pricing Becomes Simpler
USPS is proposing a major change to periodicals pricing by simplifying the structure. Instead of multiple fees, pricing will shift to a combination of per piece and per pound charges.
Editorial content will now directly lower the per piece price, which could benefit publishers with higher editorial ratios. In addition, Full Service and Seamless discounts will be available to periodicals for the first time.
This new model should make postage easier to predict, but publishers will need to run detailed models to understand how it affects their specific titles.
What Promotions Will We See in 2027?
Looking ahead, USPS plans to discontinue the Catalog and Continuous Contact promotions in 2027. New incentives will focus on tactile print, integrated technology and attracting new mailers. These changes reflect USPS’s continued focus on innovation and expanding the use of physical mail through more engaging formats.
What Mailers Should Do Now
Now is a good time to review mailing strategies and confirm eligibility for remaining promotions. Small adjustments in preparation and logistics could make a meaningful difference in controlling postage costs later in the year. Mailers should start modeling the July 2026 rates using realistic assumptions for presort and entry points – this is especially important for heavier flats and catalog programs.
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