The U.S. Postal Service (USPS) is under scrutiny for proposed changes aimed at reducing costs and improving service reliability. Postmaster General Louis DeJoy has suggested a series of measures that include reducing delivery days and increasing the price of 'Forever' stamps in 2025. These changes are part of a broader strategy to address the agency's financial challenges, which include declining mail volumes and rising fuel costs [433679eb].
One significant proposal involves implementing a one-day delay for mail traveling over 50 miles from processing centers, which DeJoy believes could streamline operations and save the agency approximately $3 billion annually. However, this proposal has raised concerns among advocates, particularly Annie Norman from the Save the Post Office Coalition, who emphasizes the critical role of mail delivery for rural residents, seniors, and veterans [433679eb].
The USPS has already faced significant financial losses, reporting a net loss of $9.5 billion for the fiscal year ending September 30, 2024. This loss is part of a troubling trend, as the agency has accumulated over $100 billion in losses since 2007 and is projected to face additional losses of $160 billion over the next decade [39e89c16].
In the UK, Royal Mail has similarly struggled with delivery performance, leading to a £10.5 million fine from Ofcom for failing to meet delivery targets. This fine comes on the heels of a £5.6 million penalty imposed in November 2023, highlighting ongoing issues within postal services across both the UK and the U.S. [f960a469].
As both postal services navigate these challenges, there are calls for innovative solutions, including the introduction of new revenue streams such as postal banking, which could help stabilize finances and improve service delivery [433679eb].