First-class letters will cost a nickel more to mail starting July 14 if a proposed U.S. Postal Service first-class rate hike is approved by the independent Postal Regulatory Commission. The cost of a one-ounce stamped letter will go from 68 cents to 73 cents.
The hike would be the sixth price hike in two years and follows statements by Postmaster General Louis DeJoy that the USPS has to catch up on years of underpricing its services. Regular rate increases are part of Mr. DeJoy’s “Delivering for America” 10-year plan for financial stability, the agency said.
In a news release, the quasi-governmental corporation said that prices would rise approximately 7.8% for mailing services, including domestic and international postcards and letters.
The USPS said the additional-ounce price for domestic letters will go from 24 to 28 cents. Metered first-class letter prices will rise from 64 to 69 cents under the proposal.
The USPS also wants to hike fees for money orders and Certified Mail service. However, postal insurance costs will be cut by 10%, and the agency is not seeking an increase in Post Office Box rental charges.
Rising mail rates are causing a drop in mail volume, critics contend. In March, a report commissioned by the Greeting Card Association, a trade group, and the Association for Postal Commerce, an alliance of businesses that use the USPS for commercial purposes, said the USPS is underestimating the price sensitivity of postal consumers.
According to the report, the “USPS must retain volume to achieve and maintain solvency in the long run. … If rate increases continue to proceed at this frequency and magnitude without critical review, it risks plummeting volume further and exacerbating USPS’s financial challenges.”
In February, the USPS reported a $2.1 billion loss for its first fiscal quarter, up from a $1 billion net loss in the same period a year earlier. The agency said total operating revenue was $21.6 billion for the quarter, an increase of $115 million, or 0.5%, compared to the same period in 2023.
Kevin Yoder, executive director of the advocacy group Keep US Posted, said Tuesday the rate hikes are “far and above” the rate of inflation. He said the agency posted a $6.5 billion loss in its 2023 fiscal year, a point where the USPS was supposed to break even.
Mr. Yoder, a former Republican congressman from Kansas, predicted more losses as the rate hikes continue.
He said, “It’s time for the Postal Regulatory Commission to hit the brakes on price increases — and for Congress to take a hard look at the numbers and how they affect the financial solvency of the U.S. Postal Service.”
In announcing the latest rate increase proposal, the agency said its postal prices “remain among the most affordable in the world.”
A USPS spokesman told The Washington Times he had no information on whether any subsequent rate increases would be filed this year.
• Mark A. Kellner can be reached at mkellner@washingtontimes.com.
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