USPS wants to raise costs of a first-class stamp up to 95 cents

The U.S. Postal Service (USPS) is facing significant financial challenges and has proposed raising the price of a first-class stamp to between 90 cents and 95 cents in a bid to address its ongoing financial struggles.

Postmaster General David Steiner revealed this at a congressional hearing on Tuesday, citing a $9 billion loss in 2025 and the need for price increases as a potential solution.

USPS Struggling with Financial Challenges

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For years, the USPS has grappled with high operating costs and declining mail volume, contributing to its worsening financial condition. Despite a 10-year plan to reduce expenses and restore profitability, the agency is facing mounting losses, with Steiner warning that the USPS could run out of cash in 12 months if current trends continue.

In his testimony to the House Oversight Committee, Steiner emphasized that the agency’s options to improve financial performance were limited to three: selling more products, raising prices, or cutting costs.

On the pricing side, Steiner stated that raising the cost of first-class stamps could help address the USPS’s controllable losses, with a hike to 95 cents being a significant step toward financial recovery.

Global Comparison: USPS Prices Still Low

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Steiner pointed out that the current 78-cent price for a first-class stamp is the lowest among industrialized nations. By comparison, other countries with similar services charge much higher fees:

• France: around $3 for a first-class letter
• United Kingdom: around $2.50

Steiner highlighted that the USPS delivers mail across vast distances, including from Puerto Rico to Alaska, for just 78 cents, whereas other countries only cover relatively smaller regions.

Rising Costs and Ongoing Losses

The proposed price increase comes after the USPS continued to experience losses despite previous efforts to raise prices. Louis DeJoy, the former Postmaster General, had implemented the 10-year plan in 2021 to return the USPS to profitability, but Steiner emphasized that additional reforms were now necessary. This includes:

• Raising the USPS borrowing limit from its current $15 billion, a figure that has remained unchanged since the 1990s.
• Reforming the pension system by allowing the USPS to invest in a broader range of securities, which could potentially improve investment returns.

A Critical Crossroads for the USPS

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Steiner stressed that the USPS is at a critical juncture. If changes aren’t made, he warned, the agency may be unable to continue its operations within the next year.

Without reform, the USPS’s ability to deliver mail could be jeopardized, further straining the agency’s financial and operational stability.

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