The U.S. Postal Service has proposed raising the price of a first-class stamp from 73 to 78 cents on July 13, resuming hikes that the agency says offset inflation.
USPS said the increase is “needed to achieve the financial stability sought by” its “Delivering for America” plan for 10 years of periodic rate hikes, which former Postmaster General Louis DeJoy announced in 2021.
“USPS prices remain among the most affordable in the world,” the federal service said.
Appointed at the end of the first Trump administration, Mr. DeJoy stepped down on March 24 after working to restructure the unprofitable USPS. It’s now led by Doug Tulino.
The proposal, which the Postal Regulatory Commission must approve, would raise overall mail service prices by 7.4%.
In January, Mr. DeJoy paused twice-yearly postage rate hikes for the first time since 2022.
USPS adopted new service standards in February that he said would save the agency at least $36 billion over 10 years.
That same month, President Trump called USPS a “tremendous loser” and said he was exploring ways to merge it with the Commerce Department.
USPS has lost more than $100 billion since 2007.
While revenues increased slightly under Mr. DeJoy’s tenure, expenses outpaced them due to salary adjustments and inflationary pressure on product costs.
USPS lost $9.5 billion in the 12 months ended Sept. 30, up from $6.5 billion the previous fiscal year.
Stamp prices have risen 46% from 50 cents in early 2019.
The proposed July hikes would also bump the rates of metered international letters from $1.65 to $1.70 for the first ounce, metered domestic letters from 69 to 74 cents for the first ounce and domestic postcards from 56 to 62 cents.
That would put postcards close to the 63 cents that first-class stamps cost in early 2023.
Critics have called the frequent rate hikes ineffective and unsustainable.
Keep US Posted, a group that advocates for “a more reliable and affordable” mail service, has pointed to figures showing that mail volume drops and expenses increase with each rate hike.
“Given that the USPS board simply followed DeJoy’s plans for another massive rate hike this week, taking stamps to 78 cents, and even higher rates for newspapers, nonprofits and businesses, Keep US Posted is calling on Congress to completely replace the USPS board and freeze rates for July,” a Keep US Posted spokesperson said Friday.
In a statement to The Washington Times, a Postal Service spokesperson defended the increases as part of “a more rational and realistic approach to pricing” based on “judicious” estimates.
“They will also help enable our $40 billion investment strategy in core infrastructure over the next 10 years — necessary to overcome a defective pricing model of over 15 years and deferred maintenance,” the spokesperson said.
