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For companies that rely on high volumes of direct mail marketing as part of their communication strategy, postage costs are no joke. These costs become even more painful when you account for postage increases, which have occurred more frequently in recent years. The USPS Mail Growth Incentive (MGI) can provide significant cost savings for companies that increase their mail volume year over year.
Understanding the ins and outs of the MGI can make you a more strategic print partner, and this elevated value can help you turn one-off jobs into long-term work. Here, we’ll look at some common questions about the MGI to equip you with the knowledge to save your customers money on direct mail.
The MGI helps companies earn credits towards postage reductions as a reward for increasing the volume of mailers sent in a given year. MGI participants can earn postage discounts of up to 30% on eligible mailings above their previous baseline.
Established in 2023, the MGI generated more than $500 million in credits in its first year, helping companies across nearly every industry. The MGI not only helps companies reduce overall costs, it also helps them more strategically allocate print marketing budgets in the face of price increases on things like paper, ink and other print materials.
While the MGI caps postage savings at 30%, other discounts are available to companies who take a more strategic approach to direct mail. The 2026 USPS postage discounts provide additional savings for direct mail pieces that incorporate digital technology or tactile or sensory components to better engage consumers.
Registration for this year’s MGI opens in March 2026 and runs through May 2026, which is why you need to start planning now for how you can help your customers take advantage of this incentive. This year’s incentive performance period runs from January 2026 through December 2026, which means companies have the entire calendar year to increase their mail volume on the road toward 30% savings on postage — but you have to be registered to reap the rewards.
Not all classes of mail are eligible for the 2026 MGI. Only First-Class Mail® and Marketing Mail® qualify for the 30% discount. While this may seem restrictive, it can be extremely beneficial for companies that send large qualities of transactional mail. Regardless which class of mail your customer uses, all mail volumes must be tracked through the USPS Business Customer Gateway.
MGI mailing thresholds are typically determined using mail volumes from the previous year. In this case, volumes from January 2025 through December 2025 will define the amount of mail required in 2026 to earn credits.
In the past two years, companies exceeding 1 million pieces of direct mail automatically qualified for credits, but that is not part of the 2026 MGI. This year, the 30% postage credit is available only to those who have registered for the program and surpass an established volume threshold, regardless of whether they eclipse the 1 million mark.
Postage credits are typically issued quarterly, though they can be scheduled during or even after the 2026 performance period.
The USPS offers a couple of additional postage discounts that can be stacked with the MGI to help maximize savings and incentivize more engaging, eco-friendly mailers.
With USPS Informed Delivery, mailers can better engage recipients with digital previews of incoming mail, along with special offers or promotions that are exclusive to these digital previews. This multi-channel approach creates an additional communication touchpoint and gives recipients more incentive to engage with mailers when they reach the mailbox. The Informed Delivery add-on provides an additional 1% discount on postage.
The sustainability add-on also provides an additional 1% postage discount for mailers that use sustainably harvested paper. This means specifying papers that are certified by the Sustainable Forestry Initiative® (SFI®).
Accent® Opaque qualifies as a responsibly sourced paper with both SFI and FSC® designations to help you create more eco-friendly direct mail that also reduces your postage costs. Plus, our diverse line of text, cover and heavyweight paper stocks provides superior versatility to create high-quality mailers that can make the most of the full range of USPS postage incentives and promotions.
Helping your customers navigate the MGI goes beyond simply saving on postage — it positions you as a strategic partner that has the knowledge and industry insight to help your customers get to where they want to go. The reliability, consistency and performance of Accent — not to mention the data-driven potential of our new Intelligent Paper pilot program — can help your customers transform their direct mail campaigns into a revenue engine that generates growth.
Contact us today to learn what Sylvamo can do for you.