USPS scraps plan to move Missoula mail processing to Spokane

The United States Postal Service will not move mail processing work from Missoula to Spokane after exploring the option last year.

In January 2024, the USPS began evaluating Missoula’s Processing and Distribution Center as part of its 10-year Delivering for America plan, which outlines a complete overhaul of the processing network. The postal service decided to move some operations to Spokane but Postmaster General Louis DeJoy in early May agreed to pause changes, at least until the new year, in response to concerns raised by several senators. 

Sen. Steve Daines and former Sen. Jon Tester echoed concerns raised by current and former Missoula postal workers that moving processing out of Montana would lead to delivery delays and job losses. 

On Friday, the USPS announced some local mail processing will remain in Missoula as part of a proposed nationwide strategy to save $3 billion annually by increasing efficiency and improving service quality. This will allow mail delivered from one address in Missoula to another to stay within the state for processing, according to the postal service. 

“Our proposed operational strategy will generate substantial savings for the Postal Service,” said Postmaster General Louis DeJoy in a statement. “This strategy provides a solution that will ensure our organization can cover the cost of local originating mail processing operations in the Missoula facility. Moreover, our Delivering for America plan is channeling up to $12.2 million into upgrading the Missoula facility. This investment goes beyond just enhancing the work environment for our employees. It’s about equipping the facility with the necessary technology and resources to deliver top-notch service to the local community for the foreseeable future.”

The $12.2 million will be used to expand and streamline package and mail processing and distribution, address deferred maintenance and renovate bathrooms and break rooms. 

While transferring processing to Spokane was expected to lead to layoffs, the new plan will have “no anticipated employee impacts,” according to the USPS. Upgrades to the Missoula facility’s package processing and shopping capacity could potentially lead to a future need for additional staff, the press release said.