The United States Postal Service (USPS) is seeking another price increase after raising the cost of a first-class stamp three times in less than two years. Should the proposed hike be approved by the Postal Regulatory Commission, customers will pay 73 cents for a stamp, reflecting about a 7 percent increase on all forms of postage.
Postmaster General Louis DeJoy, appointed by former President Donald Trump in May 2020, has made multiple attempts to reform the USPS and put it on a more sound fiscal footing. However, Congressional Democrats and later President Joe Biden hampered the reform efforts. Several lawsuits by environmental groups and progressive activists forced DeJoy to abandon a proposal to bolster the postal service’s fleet of vehicles with cheaper, gasoline-powered vehicles. The Postal Service was instead forced to acquire more expensive electric and hybrid delivery trucks.
Pressure from Congressional Democrats forced DeJoy to abandon changes to the postal service’s overtime policies and the elimination of lower-volume mail collection boxes found on city streets. The Postmaster General and the Trump Treasury Department repeatedly warned Congress that without significant changes, USPS would need to explore increasing its revenue by raising stamp prices and the cost of other services.
The stamp price plan announced on Tuesday raises the cost of first-class stamps, 1-ounce letters to 69 cents, international ounce-size letters to $1.65, and postcards to $1.65. Mailing domestic postcards will increase to 56 cents. The Postal Service hopes to implement these changes by July.
The USPS reported a $6.5 billion net loss in 2023 amidst falling revenue and usage of first-class mail, which reached its lowest level since 1968.