
The United States Postal Service (USPS) has announced plans to retain certain local mail processing operations at the Quad Cities postal facility in Milan, according to a news release from the Postal Service.
The Milan Mail Processing and Distribution Center (P&DC) will remain open at current staffing levels, USPS officials said.
The Postal Service will invest up to $6.7 million in the Quad Cities, which will result in expanded and streamlined package and mail processing and distribution capabilities for the facility. These funds will also be used for modernization efforts and deferred maintenance along with new workplace amenities for postal service employees such as new lighting and renovated bathrooms and breakrooms, according to the USPS news release.

“After urging USPS leadership to keep this facility open for more than a year, I’m glad to hear that they have decided to pause any changes through 2025, keeping current staffing levels the same,” U.S. Rep. Eric Sorensen, D-Illinois, said in a release issued by his office. “I will continue working to protect high-paying and high-quality jobs in Milan and throughout the Quad Cities.”
The Moline congressman added that: “The Milan P&DC employs many of our neighbors who help ensure timely mail delivery that helps boost our economy.”
“The decision to leave those operations in Quad Cities is made possible due to an operational strategy aimed at increasing efficiency, improving service quality, and saving USPS an additional $3 billion per-year nationwide,” according to the USPS release dated Monday, April 7.
This strategy was outlined in its request for an advisory opinion filed with the Postal Regulatory Commission (PRC). The savings generated would enable the USPS to absorb the cost of continuing to provide local cancellation service in Quad Cities. As a result, the Postal Service will not need to relocate certain local originating mail processing operations outside of the Quad Cities facility.
This means that mail being delivered from one address in Milan to another will not leave the region for processing. This update follows a previous USPS decision to shift all originating mail processing operations to the Des Moines P&DC in 2024.
Last year, a plan to modernize and change the U.S. Postal Service (USPS) distribution center in Milan faced a tough, critical crowd on Tuesday, Feb. 6, 2024, during a public input meeting. At that meeting, Moline Mayor Sangeetha Rayapati told the USPS officials she is very concerned about the plans. First, she fears there will be delays in election officials getting mailed election ballots if those forms initially go to Des Moines and have to be returned to the Quad Cities. Also, in an era when many rely on the postal service to get their medical prescriptions, she said such a system could delay the delivery of that needed medicine.
Under the updated system, the Quad Cities facility also will see changes designed to boost its services, thanks to a USPS planned investment of up to $6.7 million. These changes will not impact business mail entry, Post Office, station, and branch retail services.
Once the Quad Cities facility becomes a Local Processing Center (LPC), it is expected to handle package mailing and shipping, letters, and flats. The LPC is also expected to offer express services and accept bulk and permit mail, further improving its delivery services.
“Our operational strategy will generate substantial savings for the Postal Service. This strategy provides a solution that will ensure our organization can cover the cost of local originating mail processing operations in the Quad Cities facility,” said Acting Postmaster General Doug Tulino in the release. “Moreover, our Delivering for America plan is channeling up to $6.7 million into upgrading the Quad Cities 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.”
On Aug. 22, 2024, the USPS began the regulatory process with the PRC, proposing operational
improvements and refinements within current service standards. These enhancements aim to strengthen service reliability, increase cost efficiency, and boost overall productivity.
Earlier in 2024, the Quad Cities processing facility was part of a Mail Processing Facility Review. The main objective of these reviews was to find cost efficiencies, primarily through transportation savings.
By implementing the changes proposed in the latest request filed with the PRC, the Postal Service intends to achieve further operational efficiencies and optimizations. These would be in addition to transportation savings but achieved through different strategies than those used in certain Mail Processing Facility Reviews, according to the USPS.