Postal Service to implement RTO and new service standards despite PRC recommendations

Steve HutkinsBlog, Featured

The Postal Service announced today that it will proceed with implementation of its Regional Transportation Optimization (RTO) initiative. The RTO will end afternoon collections at three-fourths of the nation’s post offices, adding another day to delivery times for their outgoing mail and packages.

The RTO will be implemented in two phases. On April 1, 2025, phase 1 will add one service expectation day to mail originating at RTO post offices and the ZIP codes they serve. These changes apply to Leg 1 of the mail’s three-leg journey — from collection (Leg 1) to processing (Leg 2) to delivery (Leg 3).

Ninety days later, on July 1, 2025, phase 2 will be implemented and the new service standards for Leg 2 will go into effect. These new standards reflect the fact that some mail and packages will move faster through the network — some mail that’s now subject to a 3-day standard will become 2-day mail, some 4-day will become 3-day, and some 5-day will become 4-day.

The decision to move forward with the RTO represents a rejection of key recommendations of the Postal Regulatory Commission in the Advisory Opinion issued on January 31, 2025.

In a Federal Register notice announcing the changes in service standards, the Postal Service acknowledges that the PRC was highly critical of the plan and recommended that it “reconsider whether to implement this proposal.” The Postal Service goes on to explain why it is proceeding anyway:

“In lieu of a fair and comprehensive assessment, however, the PRC’s advisory opinion presents a one-sided narrative that mischaracterizes the Postal Service’s proposal, ignores the benefits it can be reasonably expected to yield, baselessly magnifies its alleged downsides, downplays the necessity of financial self-help, and makes unrealistic demands that would, if heeded, impede urgently needed progress.”

The USPS press release is here; a FAQ page is here; the Postal Service’s response to the advisory opinion is here; and the Federal Register Notice, which explains the two phases of implementation, is here. For more about the RTO, see our RTO dashboard. To see how your ZIP code will be impacted, check out the look-up tool in this post.