The United States Postal Service (USPS) has proposed a five-cent increase in the price of a first-class “Forever” stamp, raising the cost from 73 cents to 78 cents.
If approved by the Postal Regulatory Commission, the change would take effect on July 13, 2025. This proposed seven-point-four per cent rate hike is part of USPS’s ongoing efforts to achieve financial stability amid declining mail volumes and increasing operational costs.
In addition to the increase in first-class stamp prices, USPS has proposed adjustments to other mailing services:
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Metered letters would rise from 69 cents to 74 cents.
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Domestic postcards would increase from 56 cents to 62 cents.
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International postage would go from $1.65 to $1.70.
These proposed changes come in the wake of significant financial challenges for the USPS. The agency has reported losses exceeding $100 billion since 2007, including a $9.5 billion deficit in the fiscal year ending September 2024. Although there was a reported net income of $144 million for the last quarter of 2024, the USPS continues to face financial hurdles. The volume of first-class mail has declined by 80 per cent since 1997, reaching its lowest level since 1968.
In response to these challenges, the USPS has implemented a restructuring plan aimed at reducing projected losses. Despite receiving substantial federal financial support, including a $50 billion relief package and $10 billion in loan forgiveness, the agency still forecasts $80 billion in losses over the next decade. Further cost-cutting measures are planned to address this shortfall.
The proposed rate increase follows the resignation of Postmaster General Louis DeJoy in March 2025. DeJoy had advocated for aggressive price hikes to offset inflationary pressures and had warned of the need for persistent rate increases due to a long-standing flawed pricing model. Deputy Postmaster General Doug Tulino is currently serving as the interim postmaster general until a permanent successor is appointed.
Looking ahead, the USPS has indicated plans for additional price increases, with adjustments scheduled for January and July of both 2026 and 2027. These consecutive adjustments are part of a long-term financial strategy to ensure the agency’s sustainability.
The proposed changes underscore the ongoing transformations and financial challenges within the USPS as it seeks to adapt to changing mailing habits and economic pressures.