The United States Postal Service (USPS) has embarked on an aggressive price hike as part of its unprecedented financial overhaul. Beginning on July 14th, the price for first-class US mail stamps will increase from 68 cents to 73 cents, marking a 7.8% rise in the price of mailing services products. This increase is part of USPS's ten-year 'Delivering for America' plan, which aims to transform the postal service into a self-sustaining and high-performing organization. The price hike is expected to generate $44 billion in additional revenue by 2031 [59412360] [ca177ab7] [1865cb62].
USPS has been aggressively increasing stamp prices due to significant financial losses. Since 2007, USPS has lost over $100 billion, prompting the need for a comprehensive financial overhaul. The postal service is undergoing a restructuring plan to address projected losses of $160 billion over the next decade. The new pricing policy is a crucial part of this plan and is expected to contribute to the generation of additional revenue [1865cb62].
First-class mail volume has been declining, dropping 6.1% in the 12 months ending September 30, 2023, to 46 billion pieces. This decline in mail volume is the lowest recorded since 1968. To mitigate these challenges, President Joe Biden signed legislation offering USPS approximately $50 billion worth of financial relief over the next decade. This financial support aims to ensure the long-term survival of USPS [1865cb62].
US Postmaster General Louis DeJoy has agreed not to further consolidate the Postal Service's processing network until at least January. This decision is part of ongoing efforts to stabilize and improve USPS operations. The constant restructuring and price adjustments are necessary to address the financial challenges faced by USPS and secure its future [1865cb62].