Nonprofit Postage Rates will be Reduced

Postage Rate Decrease

Good news! Sending out those paper mailings is about to get a bit cheaper. On Sunday, April 10, 2016, the U.S. Postal Service will be reducing postage rates, including first class and nonprofit postage rates.

Normally, postage rates are capped by law at the rate of inflation. But under extraordinary or unusual circumstances, the Postal Service is allowed to request special pricing. Such was the case on December 24, 2013, when the Postal Regulatory Commission (PRC) approved a 4.3% surcharge on postal services. However, the PRC put a limit of $4.6 billion on the amount of surcharges the Postal Service could collect. By April 10, 2016, the Postal Service is expected to reach that limit and will remove the 4.3% surcharge.

It is still possible that a Congressional or court action before April 10 could extend the surcharge or make it permanent. It’s not clear how likely this is. Visit the U.S. Postal Service Postal Explorer for the most current information, as well as links to the new postage rates, including nonprofit rates.

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