WASHINGTON, D.C. – The U.S. Postal Service (USPS) faces criticism over its plan to raise stamp prices again in July, amid a decline in mail volume. Keep US Posted, a nonprofit advocacy group, is urging the Postal Regulatory Commission to reject the proposed hike and calling on Congress to re-evaluate the Delivering for America plan, which includes regular stamp price increases.
The proposed increase would raise the price of a first-class stamp from 68 cents to 73 cents, a nearly 7.4% jump, far exceeding current inflation rates. Keep US Posted argues that frequent price hikes contribute to declining mail volume, noting a 9% decrease in fiscal year 2023.
Kevin Yoder, Executive Director of Keep US Posted, warns of a vicious cycle: “Price hikes are driving disastrous declines in mail volume, which is still the biggest money-maker for the USPS.” A report by NDP Analytics suggests the USPS’s pricing model may be flawed, potentially worsening its financial problems.
In response, the USPS cites rising operational costs and the need to maintain reliable mail service, especially in rural areas. They emphasize innovation and modernization efforts, such as expanding package delivery services.
The Postal Regulatory Commission will decide on the proposed increase, weighing the USPS’s financial needs against the risk of further mail volume decline. Congress may also consider legislative solutions to ensure the USPS’s long-term economic health while keeping postage rates affordable.