Proposed Rule2026-08432
Periodic Reporting
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
April 30, 2026
Issuing agencies
Postal Regulatory Commission
Abstract
The Commission is acknowledging a recent Postal Service filing requesting the Commission initiate a rulemaking proceeding to consider changes to analytical principles relating to periodic reports. This document informs the public of the filing, invites public comment, and takes other administrative steps.
Full Text
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<title>Federal Register, Volume 91 Issue 83 (Thursday, April 30, 2026)</title>
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[Federal Register Volume 91, Number 83 (Thursday, April 30, 2026)]
[Proposed Rules]
[Pages 23204-23206]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-08432]
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POSTAL REGULATORY COMMISSION
39 CFR Part 3050
[Docket No. RM2026-4; Order No. 9548]
Periodic Reporting
AGENCY: Postal Regulatory Commission.
ACTION: Notice of proposed rulemaking.
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SUMMARY: The Commission is acknowledging a recent Postal Service filing
requesting the Commission initiate a rulemaking proceeding to consider
changes to analytical principles relating to periodic reports. This
document informs the public of the filing, invites public comment, and
takes other administrative steps.
DATES: Comments are due: May 29, 2026.
ADDRESSES: Submit comments electronically via the Commission's Filing
Online system at <a href="https://www.prc.gov">https://www.prc.gov</a>. Those who cannot submit comments
electronically should contact the person identified in the FOR FURTHER
INFORMATION CONTACT section by telephone for advice on filing
alternatives.
FOR FURTHER INFORMATION CONTACT: David A. Trissell, General Counsel, at
202-789-6820.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Introduction
II. Background
III. Proposal
IV. Notice and Comment
V. Ordering Paragraphs
I. Introduction
On April 24, 2026, the Postal Service filed a petition pursuant to
39 CFR 3050.11 and Order No. 9377 \1\ requesting that the Commission
initiate a rulemaking proceeding to consider changes to analytical
principles relating to periodic reports.\2\ The Petition
[[Page 23205]]
identifies the proposed analytical changes filed in this docket in a
proposal accompanying the Petition.
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\1\ Docket No. RM2023-7, Order on Motion for Reconsideration and
Clarification of Order No. 6659, December 1, 2025 (Order No. 9377).
\2\ Petition of the United States Postal Service to Initiate a
Proceeding to Change Analytical Principles, April 24, 2026
(Petition).
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II. Background
The Postal Service Reform Act of 2022 \3\ modified and expanded the
Postal Service's ability to enter into interagency agreements (IAAs) to
provide property and services to, or on behalf of, other government
agencies. Specifically, 39 U.S.C. 3703 for the first time authorizes
the Postal Service to enter into agreements with agencies of any state
government, local government, or tribal government to provide property
or nonpostal services to the public on behalf of such agencies for non-
commercial purposes. At the same time, with respect to the Postal
Service's pre-existing authority under 39 U.S.C. 411 to provide
property and services to other Federal agencies, the PSRA specifies
that ``[t]he Postal Service may establish a program to provide property
and nonpostal services to other Government [i.e., federal] agencies
within the meaning of section 411,\4\ but only if such program provides
a net contribution to the Postal Service, defined as reimbursement that
covers at least 100 percent of the costs attributable . . . .'' 39
U.S.C. 3704.
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\3\ Postal Service Reform Act of 2022 (PSRA), Public Law 117-
108, 136 Stat. 1127 (2022).
\4\ Prior to the enactment of the PSRA, the Postal Service's
authority for these agreements was governed by 39 U.S.C. 411, which
authorizes the Postal Service to ``furnish property and services''
to ``Executive agencies within the meaning of [5 U.S.C. 105] and the
Government Publishing Office. . . .'' 39 U.S.C. 411. Section 105 of
Title 5 of the United States Code specifies that an `` `Executive
agency' means an Executive department, a Government corporation, and
an independent establishment'' of the U.S. Government, as those
terms are defined in 5 U.S.C. chapter 1. 5 U.S.C. 105.
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Under the PSRA, the Postal Service must submit a report to the
Commission after the close of each fiscal year that:
[A]nalyzes costs, revenues, rates, and quality of service for
each agreement or substantially similar set of agreements for the
provision of property or nonpostal services under section 3703 or
the program as a whole under section 3704, and any other nonpostal
service authorized under [Chapter 37 of Title 39 of the United
States Code], using such methodologies as the Commission may
prescribe, and in sufficient detail to demonstrate compliance with
the requirements of [Chapter 37 of Title 39 of the United States
Code].
39 U.S.C. 3705(a)(1). Upon receiving the Postal Service's report
and providing an opportunity for public comment, the Commission must
make a written determination of compliance. 39 U.S.C. 3705(e).
Because the PSRA was enacted on April 6, 2022 (during FY 2022
Quarter 3), the Postal Service's first report responsive to this new
statutory requirement was due December 29, 2022, covering FY 2022. In
its FY 2022 Annual Compliance Determination (ACD), the Commission
directed the Postal Service to develop a proposed methodology (or
methodologies) for calculating and attributing costs and revenue to
IAAs authorized under 39 U.S.C. 3703 and 3704, and to initiate a
rulemaking proceeding to establish such methodology (or methodologies)
in accordance with 39 CFR 3050.11.\5\ As directed, the Postal Service
initiated Docket No. RM2023-7 on May 26, 2023, proposing a categorical
approach to calculating and attributing costs and revenue to similar
types, or groupings, of IAAs.\6\
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\5\ Docket No. ACR2022, Annual Compliance Determination, March
29, 2023, at 102 (FY 2022 ACD).
\6\ Docket No. RM2023-7, Petition of the United States Postal
Service for the Initiation of a Proceeding to Consider Proposed
Changes in Analytical Principles (Proposal Two), May 26, 2023.
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On August 31, 2023, the Commission conditionally approved the
Postal Service's proposed methodology, subject to seven conditions.\7\
As relevant here, three of the conditions had to do with what the
Commission termed ``hybrid agreements,'' or agreements that involve the
provision to government agencies of both: (1) postal services as
defined by 39 U.S.C. 102(5) and/or nonpostal services authorized under
39 U.S.C. 404(e); and (2) property or nonpostal services authorized
under 39 U.S.C. 411, 3703, and 3704. Order No. 6659 at 16-17,
Attachment Under Seal at 1. As explained in Order No. 6659, postal
services and nonpostal services are subject to different legal
requirements with respect to pre-implementation review and post-
implementation accounting and reporting. Order No. 6659 at 13. For
these unique types of agreements, therefore, the Commission sought to
ensure that the postal and nonpostal aspects of the agreements were
separately accounted for and attributed, and that the correct pre-
implementation procedures were followed. Id. at 16-17; see Attachment
Under Seal. The Commission directed the Postal Service to make
additional filings responsive to these conditions by September 29,
2023. Id.
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\7\ Docket No. RM2023-7, Order on Analytical Principles Used in
Periodic Reporting (Proposal Two), Directing the Postal Service's
Participation in Further Proceedings, and Providing Notice of Filing
Attachment Under Seal, August 31, 2023 (Order No. 6659).
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On September 15, 2023, the Postal Service filed a motion seeking
reconsideration and clarification of Order No. 6659, including the
three conditions specific to hybrid agreements.\8\ On December 1, 2025,
the Commission denied the Postal Service's motion with respect to the
conditions relating to hybrid agreements in Order No. 9377. The
Commission directed the Postal Service to file a proposed change in
analytical principles consistent with the terms of Conditions 5 and 7
of Order No. 6659, as clarified by Order No. 9377, by May 1, 2026.
Order No. 9377 at 44-45. On January 27, 2026, the Postal Service
appealed Order Nos. 6659 and 9377 to the United States Court of Appeals
for the District of Columbia Circuit. See Petition for Review, United
States Postal Serv. v. Postal Regul. Comm'n, No. 25-1289 (D.C. Cir.
filed Dec. 26, 2025, ECF No. 2152063). Nevertheless, the Postal Service
states that it is ``proceeding with this proposal in the interim as a
good faith attempt to comply with Order No. 9377 and outline the
procedure for disaggregating costs, revenues, and volumes for
agreements that fit the Commission's definition of `hybrid'
agreements.'' Petition at 4.
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\8\ Docket No. RM2023-7, USPS Motion for Reconsideration and
Clarification of Commission Order No. 6659, with Portions Filed
Under Seal, September 15, 2023.
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III. Proposal
The Postal Service proposes that it begin, for purposes of each
fiscal year's Annual Compliance Review (ACR), designating fulfillment
costs as ``nonpostal'' and disaggregating any nonpostal product costs
and revenues from postal product costs and revenues. Id. Fulfillment
related costs and revenues currently included in NSA reporting would be
moved to IAA reporting and categorized under one of the 6 categories
approved in Order No. 6659. Id. The Postal Service additionally
proposes to change the name of the current IAA category ``COVID Test
Kits- Fulfillment'' to only ``Fulfillment.'' Id. at 5. The Postal
Service states that ``[w]ith the discontinuance of the Postal Service
distribution of COVID test kits, this category may have been removed[;]
[however,] [t]o support the reporting of fulfillment activities within
IAAs and NSAs with government counterparties, the Postal Service finds
an IAA category for fulfillment services necessary for accurate IAA
reporting.'' Id.
IV. Notice and Comment
Pursuant to 39 CFR 3050.11(d)(1), the Commission establishes Docket
No. RM2026-4 for consideration of matters raised by the Petition. More
information on the Petition may be accessed via the
[[Page 23206]]
Commission's website at <a href="http://www.prc.gov">http://www.prc.gov</a>. Interested persons may
submit comments on the Petition and the Postal Service's Proposal by
May 29, 2026. Pursuant to 39 U.S.C. 505, Jennaca Upperman is designated
as an officer of the Commission (Public Representative) to represent
the interests of the general public in this proceeding.
V. Ordering Paragraphs
It is ordered:
1. The Commission establishes Docket No. RM2026-4 for consideration
of the matters raised by the Petition of the United States Postal
Service to Initiate a Proceeding to Change Analytical Principles, filed
April 24, 2026.
2. Comments by interested persons in this proceeding are due May
29, 2026.
3. Pursuant to 39 U.S.C. 505, the Commission appoints Jennaca
Upperman to serve as an officer of the Commission (Public
Representative) to represent the interests of the general public in
this docket.
4. This order, or abstract thereof, will be published in the
Federal Register.
By the Commission.
Sarah Wessel,
Senior Paralegal Specialist.
[FR Doc. 2026-08432 Filed 4-29-26; 8:45 am]
BILLING CODE 7710-FW-P
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</html>Indexed from Federal Register on April 30, 2026.
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