“USPS Proposes Increase in Stamp Prices to 78 Cents”
The United States Postal Service announced its intention to raise the price of first-class mail stamps to 78 cents from 73 cents starting July 13, pending approval from the Postal Regulatory Commission. This proposal would result in a 7.4% increase in overall mailing services product prices.
After several years of incremental price hikes, the USPS chose not to raise prices in January, marking the first time since 2022. Stamp prices have surged by 46% since early 2019 when they were priced at 50 cents.
Louis DeJoy, the Postmaster General who had spearheaded efforts to restructure the financially struggling USPS for nearly five years, resigned abruptly in March. DeJoy had advocated for significant price increases to counteract inflationary pressures at the postal service.
Since 2007, USPS has accumulated over $100 billion in losses, including $9.5 billion in the 12 months ending Sept. 30. However, the agency reported a net income of $144 million for the three months ending Dec. 31.
With a sharp decline in first-class mail volume and ongoing financial challenges, USPS implemented new service standards in February that are expected to save at least $36 billion over a decade.
In 2022, President Joe Biden extended $50 billion in financial relief to USPS over a decade, while Congress forgave a $10 billion loan. The postal service unveiled a restructuring plan in 2021 aimed at reducing projected losses by $160 billion over the next decade, with additional cost-cutting measures planned to address an estimated $80 billion shortfall.
Former President Donald Trump, who criticized USPS as a significant financial burden, suggested merging the agency with the Commerce Department in February. This proposal faced opposition from Democrats who argued it would violate federal law.
