The US Postal Service (USPS) has filed a notice proposing a price increase for stamps, marking the fifth proposed rise in just two years. If approved, the price of a First-Class ‘Forever’ stamp would rise by 5 cents, from 68 cents to 73 cents. This increase would tie the record for the highest stamp hike ever recorded. Notably, the last 5-cent increase occurred in January 2019, when stamp prices rose from 50 to 55 cents.
The proposal comes as part of USPS’s efforts to address financial challenges and recoup losses resulting from declining mail volume. Stamp prices have surged by 36 percent since 2019, with several price hikes implemented in recent years, including a 2-cent increase in January and a 3-cent rise in July last year.
If approved by the Postal Regulatory Commission, the proposed price adjustments would take effect on July 14, resulting in an almost 8 percent increase. These changes are part of USPS’s broader 10-year financial plan, ‘Delivering for America,’ announced in 2021 by Postmaster General Louis DeJoy. The plan aims to raise prices and implement service changes to mitigate projected losses of $160 billion over a decade.
The USPS has attributed the need for price adjustments to declining mail volume, exacerbated by societal shifts towards digital communication. In 2023, USPS handled 116.1 billion pieces of mail, a notable decrease from the peak of over 213 billion in 2006.
While the proposed price adjustments aim to achieve financial stability, they have faced criticism from consumer advocacy groups. Kevin Yoder, executive director of Keep US Posted, condemned the frequent postage hikes, attributing them to significant declines in mail volume and financial losses. Yoder emphasized the need for regulatory scrutiny and congressional oversight to ensure the financial solvency of the USPS.
Despite the criticisms, it is rare for regulators to decline USPS requests for price hikes. However, past rejections have occurred, such as in 2010 when the Postal Regulatory Commission cited USPS’s failure to quantify the impact of the recession on its finances and justify its rate request in relation to mail volume loss.
In summary, the proposed stamp price increase reflects USPS’s ongoing efforts to address financial challenges amid changing market dynamics. If approved, it would impact consumers and businesses relying on postal services while raising questions about the long-term viability of traditional mail delivery in the digital age.