January 1, Postmaster’s New Price Hike Plan Faces Lawmaker Opposition: USPS Future at Stake

Just a few months ago, Postmaster General Louis DeJoy led the U.S. Postal Service (USPS) to raise mailing service prices by around 2 percent. Now, the agency plans to implement another price hike in the coming months. This has led lawmakers to demand a change to these “unsustainable” USPS price increases.

In an April 9 press release, USPS filed notice with the Postal Regulatory Commission (PRC) for proposed mailing service price changes. This includes a 5-cent increase on First-Class Mail Forever stamps and an overall 7.8 percent increase. If implemented, it would be one of the agency’s largest price hikes.

The USPS claims that as the mailing and shipping marketplace evolves, these price adjustments are necessary for the financial stability sought under their Delivering for America (DFA) 10-year plan. If approved by the PRC, the new prices would take effect on July 14.

However, lawmakers are striving to prevent these increases. A group of U.S. senators, led by Wisconsin’s Tammy Baldwin, sent a letter to the USPS Board of Governors on April 23. They urged them to “halt these changes and prevent further consequences for American families and businesses who depend on USPS.”

The senators expressed concern about the USPS’s future and its DFA plan, initiated by DeJoy in 2021. They stated that the policies have led to “diminished quality of customer service, unsustainable postage increases, and drastic declines in businesses whose commerce relies on USPS.”

Under the DFA, DeJoy plans to raise mail prices twice every year to optimize the agency’s revenue. Lawmakers argue that these price hikes are instead creating a “destructive and repetitive cycle.”

The senators’ letter explains, “As USPS increases rates, mailers predictably reduce their mail volume and, in turn, USPS is forced to increase rates again to replace the lost revenue from volume reduction.”

In conclusion, lawmakers believe the twice-annual price hikes have not improved the Postal Service’s financial situation and could potentially worsen it in the long run. They urge the Board of Governors to intervene before further harm is caused to Americans and businesses relying on USPS services.

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