Why It Matters
The U.S. Postal Service is raising rates aggressively while degrading service and consolidating facilities that members depend on nationwide. With USPS implementing 6.6-7.8 percent rate increases for package services in 2026 and failing to meet service standards, e-commerce and retail shippers risk losing cost-effective shipping options essential to their business models.
The coalition’s lobbying strategy targets legislative solutions that would cap rate increases to inflation, require performance standards before additional rate authority, and prevent facility closures that disrupt regional delivery networks.
By the Numbers
Package Coalition LLC filed its last quarter lobbying disclosure for $50,000 with McHugh LeMay Associates LLC. The coalition has invested $4.37 million across 58 filings since 2018, making it a persistent presence on postal reform.
The coalition employs two primary lobbying firms. K&L Gates LLP has received $3.18 million over 30 filings, while McHugh LeMay Associates has earned $1.19 million across 28 filings since May 2019.
John Michael McHugh, the sole registered lobbyist, brings deep postal expertise from representing the coalition since 2018 and working for Pitney Bowes Inc. on similar issues.
The Agenda
Package Coalition LLC is lobbying on "postal reform as it pertains to package delivery services." The coalition’s main advocacy targets include:
- Rate controls: Supporting the H.R.3004 – USPS SERVES US Act, which would cap annual postal rate increases to the Consumer Price Index
- Performance-based pricing: Backing the bipartisan S.1002 – Deliver for Democracy Act and its House companion (H.R.2098), which tie rate authority to on-time delivery targets
- Infrastructure protection: Advocating for the H.R.2103 – Protect Postal Performance Act and S.661 – Postal Processing Protection Act, which would require public hearings before USPS facility closures
Broader Context
Congress is laser-focused on USPS’s deteriorating finances and service performance. USPS reported a $9 billion net loss in fiscal 2025, maxing out its $15 billion borrowing limit from Treasury. The agency failed five of six service targets during peak season while implementing steep rate increases.
This creates direct threats to coalition members who rely on USPS for affordable package delivery. Congress is responding with bipartisan urgency—a new Congressional Postal Service Caucus has emerged, pushing legislation to cap rate increases and prevent facility closures.
Between The Lines
Recent congressional hearings underscore the urgency. A June 2025 House subcommittee hearing featured the Package Shippers Association raising concerns about rate increases. Rep. Chris Pappas (D-NH) launched the bipartisan Congressional Postal Service Caucus to address delivery failures, while Republicans like Sen. Josh Hawley (R-MO) are pressuring USPS on rural service protection, creating bipartisan momentum for reform.
Competitive Landscape
The Package Coalition’s advocacy occurs within a competitive lobbying landscape. FedEx Corp. is lobbying on postal privatization and USPS governance, focusing specifically on the Package Delivery Parity Act discussion draft. The National Beer Wholesalers Association is lobbying for the United States Postal Service Shipping Equity Act to allow USPS to ship alcoholic beverages, potentially increasing package volume.
The Bottom Line
The coalition’s $50,000 last quarter filing represents its seventh year of sustained advocacy amid intensifying congressional scrutiny of USPS. Congress is actively debating rate caps, facility closure protections, and performance standards—issues directly impacting e-commerce and retail shippers. The current environment of USPS financial losses, service deterioration, and bipartisan frustration creates a receptive landscape for legislative action on the coalition’s key priorities.
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