January 1, USPS Fee Hikes Set to Hit This Holiday Season

As we advance in the digital age, with conveniences like online banking and effortless shopping on platforms like Amazon, the U.S. Postal Service (USPS) remains a vital institution for many Americans. Whether it’s mailing holiday cards or sending wedding invitations, there are times when we still rely on good old snail mail. This becomes even more crucial when dealing with important documents requiring certified mail or sending a signed check.

Recently, the USPS announced another round of fee hikes just as the busy holiday season approaches, causing concern among Americans who rely on this service.

Louis DeJoy, appointed as the 75th Postmaster General in 2020, has been at the center of these changes. His 10-year “Delivering for America” plan aims to transform the financially-struggling USPS into a self-sustaining and high-performing entity. This vision has come at a cost, with several price hikes implemented under DeJoy’s tenure, a move necessary according to DeJoy, to counteract a “defective pricing model” damaged by years of fiscal mismanagement.

Starting early this year, stamp prices and other mailing costs saw a 2 percent hike. July witnessed another round, with a 5-cent increase on First-Class Mail Forever stamps and a significant 7.8 percent jump for mailing services. These increases were some of the most substantial in USPS history and were part of DeJoy’s broader strategy to ensure the organization’s survival and efficiency amidst rising inflation.

Interestingly, the USPS recently announced it would not raise stamp prices in January 2025, with DeJoy indicating that current strategies are yielding positive results and projected inflation is on the decline. As a result, the price hikes from July will hold steady into the new year.

However, USPS customers will still face other increased costs during the 2024 holiday season. A press release detailed temporary rate changes effective from Oct. 6 through Jan. 19, 2025, impacting services like Priority Mail and USPS Ground Advantage, albeit sparing stamp prices from additional hikes. This move serves as a reminder that while some relief is offered, the economic realities necessitating these changes still loom large.

As DeJoy continues to steer the USPS through turbulent times, these adjustments exemplify a broader effort to preserve a crucial American institution while adapting to modern fiscal challenges.

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