The U.S. Postal Service announced Tuesday it stands ready for the 2025 holiday season, supported by nearly $20 billion in investments over four years to modernize facilities and processing equipment nationwide. Postmaster General and CEO David Steiner said the upgrades position the agency to manage increased volumes of mail and packages during the peak period, which begins planning each January.
The investments focus on expanding processing, logistics and delivery infrastructure to address evolving consumer needs in mailing and shipping. USPS expects to handle a surge in activity, with industry forecasts projecting about 2.3 billion total U.S. holiday parcel deliveries in late 2025, a 5 percent increase from 2024. These efforts aim to provide dependable, affordable and high-quality service through the season, including priority morning parcel delivery, enhanced scanning technology and extended retail and pickup hours at popular Post Office locations.
“The Postal Service plans throughout the year to deliver the nation’s mail and packages during the high-volume holiday season and we are well prepared and ready to deliver for the American public,” Steiner said. “For the past several years, the Postal Service has been gaining market share in our package business, which reflects the strong value and excellent portfolio of the shipping options we provide. We expect to see a continuation of this trend in the coming holiday period and to continue winning a larger share of the nation’s shipping business.”
Key progress includes boosting daily package processing capacity from 60 million to 88 million pieces through the addition of 614 state-of-the-art package sorting machines over the past five years, with 94 installed in 2025 alone. These machines offer automated scanning for improved tracking visibility and can manage more and larger packages than legacy equipment. In December 2024, USPS delivered 45 percent more packages per operating day than competitors while handling more than 350 million mail pieces daily, a performance officials plan to build upon this year.
Workforce stabilization has reduced reliance on temporary hires. Since 2020, USPS has converted nearly 232,000 precareer employees to full-time positions, allowing for just 14,000 seasonal workers this year, down from 40,000 in prior periods. These additions will support operations at key locations to absorb extra holiday volume.
Service standards updated in July 2025 expand turnaround processing and delivery within the same region to a 2- or 3-day standard on average, enabling faster and more reliable handling of local holiday greetings and shipments for consumers and businesses.
Facility expansions provide additional space for volume management. Over the past four years, USPS has opened nine regional processing and distribution centers, 19 regional transfer hubs, 17 local processing centers and 133 sorting and delivery centers. In 2025, new sites debuted in Dallas; Phoenix; and Johnson City, Tennessee, with upcoming openings in Memphis, Tennessee; Birmingham, Alabama; Tampa, Florida; and San Antonio, Texas. These additions ensure capacity not only for holidays but for year-round service improvements.
A new chief performance officer role enhances enterprise-wide efficiency, collaborating with customers to align solutions with their needs. This consultative approach targets better performance across operations.
Fleet upgrades contribute to reliability and sustainability. USPS received nearly 29,000 new vehicles in 2025 and deployed more than 24,000 to routes, with plans for a total of 106,480 acquisitions, including 66,000 zero-emission electric models. The shift supports environmental goals while maintaining consistent deliveries.
Customers have access to flexible, affordable shipping options, all including $100 insurance and tracking on most shipments: USPS Ground Advantage for 2 to 5 business days; Priority Mail for 2 to 3 business days; and Priority Mail Express for 1 to 3 business days. USPS maintains the lowest postage rates among industrialized nations and delivers to nearly 169 million addresses, processing 44 percent of the world’s mail.
To ensure on-time arrivals by December 25, USPS recommends the following mailing and shipping deadlines: December 16 for Ground Advantage; December 17 for First-Class Mail; December 18 for Priority Mail; and December 20 for Priority Mail Express. Post offices will close on December 25 for Christmas and operate with reduced service on December 24, though many locations extend hours starting mid-November.
These preparations stem from the 2021 Delivering for America plan, which realigns the network for e-commerce growth following the pandemic. USPS, founded in 1775, has served as a connectivity cornerstone for 250 years, adapting from stagecoach routes to modern hubs. The agency continues to prioritize affordability, undercutting competitors on small packages and supporting traditions like holiday cards and gifts amid rising e-commerce demands.
As volumes peak, measures such as temporary price adjustments announced October 3 keep costs stable. Last holiday season, USPS shipped over 1 billion packages nationwide, reflecting steady market gains. The integrated network of personnel, technology, transportation, equipment and facilities provides resilience against weather disruptions or unexpected surges, upholding the 2- to 3-day delivery averages.
