USPS Scraps Plan to Move Missoula Mail Processing to Spokane
New postal service strategy aiming to save $3 billion annually allows Missoula facility to continue local processing
By Katie Fairbanks for Montana Free Press February 21, 2025
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.
Senator Steve Daines and former Senator 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.
Montana Independent News Addendum, Senator Daines’ February 22 press release:
U.S. Senator Steve Daines applauded the decision by the United States Postal Service (USPS) to invest in operations at the Missoula Processing & Distribution Center. The decision comes after Daines sent a letter to Postmaster General Louis DeJoy expressing concern about the possible relocation of the Missoula center to Spokane, which would have caused service disruptions and job losses for Montanans.
“This is a win for Montanans. Many people in our state rely on the Postal Service for critical things like prescription medicine and benefits checks, and the Missoula facility provides jobs and an economic boost to the community. I applaud USPS for heeding Montanans’ concerns and investing in our state,” said Daines.
Read the letter Daines sent to Postmaster General DeJoy HERE.
See more of Daines’ work to support USPS HERE.
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