PRESS RELEASE (National Newspaper Association) – The recent U.S. Supreme Court ruling in USPS v. Konan, delivers a significant setback for newspapers and other businesses that rely on the nation’s mail system, narrowing the ability to hold the United States Postal Service accountable for service failures.
In its decision, the Court limited the circumstances under which plaintiffs may recover damages related to lost, delayed, or mishandled mail.
By reinforcing sovereign immunity protections, and narrowing the interpretation of the Postal Service’s “sue-and-be-sued” clause, the ruling reduces meaningful avenues for legal recourse when delivery failures cause financial harm.
For newspapers — particularly community and rural publications — the consequences are serious.
Time-sensitive delivery is not a luxury for local newspapers; it is essential to their business model and public service mission.
Delayed or undelivered papers can result in lost advertising revenue, subscriber dissatisfaction, and diminished trust in local news outlets. With already thin margins and rising operational costs, publishers often have little ability to absorb these losses.
“The USPS must have skin in the game like our news outlets do, otherwise they will continue with their dismal service,” NNA Chair Martha Diaz Askenazy, publisher of the San Fernando (California) Valley Sun and El Sol Newspapers, said. “If USPS wants to be regarded seriously as a business, it must accept responsibility for serious failures.
“Any business experiences momentary lapses in judgment or small performance flaws, but when a business does damage to a customer, it expects to pay a price. Congress should hold USPS accountable for serious failures.”
The ruling also creates broader uncertainty for businesses that rely on government-created entities operating in commercial spaces.
While Congress authorized the Postal Service to ‘sue and be sued,’ the Court’s narrow interpretation signals that immunity protections may still significantly restrict claims.
Newspapers remain committed to serving their communities. Ensuring dependable mail service and meaningful accountability is essential to preserving that mission.
NNA supports H.R. 3004, the USPS SERVES US Act, which includes a provision that would limit USPS rate authority if it fails to meet service standards to ensure the needed accountability is provided.