Published: March 2017

US Postal Service advocates call for an end to CPI price cap

The Postal Regulatory Commission (PRC) is reviewing the effects of the current rate system, capped by the Consumer Price Index (CPI), to see how it impacts the Postal Service's ability to meet the objectives stated in the Postal Accountability and Enhancement Act. The coalition’s recommendations included eliminating the CPI cap, which places financial pressures on the Postal Service, putting the agency at risk. It holds back the necessary infrastructure changes, needed capital investments and the ability for the USPS to fix safety and health issues – such as replacing an outdated fleet of vehicles. It also strangles the USPS' ability to restore and protect good postal services.

Consumer Action joined coalition advocates in submitting comments to the Postal Regulatory Commission (PRC) for their ongoing “10 Year Rate System Review,” required by Congress in the 2006 Postal Accountability and Enhancement Act (PAEA). The Commission is reviewing the effects of the current rate system, capped by the Consumer Price Index (CPI), to see how it impacts the Postal Service's ability to meet the objectives stated in the PAEA. The coalition recommends eliminating the CPI cap, which hinders the USPS ability to raise revenue. The CPI cap prevents the Postal Service from achieving its statutory objectives and mission to maintain quality service and achieve adequate revenue for financial sustainability.

Lead Organization

American Postal Workers Union (APWU)

Other Organizations

Alliance for Retired Americans | Catholics in Alliance for the Common Good | Center for Community Change Action | Center for Media and Democracy’s PR Watch | Center for Study of Responsive Law | Consumer Action | Farm Aid | In the Public Interest | Hightower Lowdown | National Coalition on Black Civic Participation | National Organization for Women | New Progressive Alliance | People Demanding Action | Vote Vets Action Fund

More Information

For more information, please visit APWU's website.

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US Postal Service advocates call for an end to CPI price cap   (USPS_comment.pdf)