Why Are Postal Stamp Prices Going Up Again?
The United States Postal Service has once again filed to increase postal rates. This is a continuation of USPS’s Delivering for America Plan (DFA), a 10-year roadmap aimed at financial stability.
If approved by the Postal Regulatory Commission, new rates will take effect July 13, 2025. This would mark the seventh price hike since 2021 and a continuation of a troubling trend for those who rely on the Postal Service.
When is the Cost of Stamps Going Up?
The cost of a First-Class Mail Forever stamp is set to rise by 5 cents, from 73 cents to 78 cents. This is part of a broader 7.4% increase across mailing services.
The USPS Board of Governors approved these proposed adjustments. However, they still require final authorization from the Postal Regulatory Commission before they can be implemented.
If approved by the Postal Regulatory Commission, new rates will take effect July 13, 2025.
What Happened Last Year?
In 2024, USPS implemented its sixth rate increase since 2021, raising the price of a First-Class stamp from 68 cents to 73 cents.
While intended to stabilize finances, the hikes instead contributed to:
- Declining mail volume, down 13 billion pieces since 2020
- Reduced service performance, with only 83% of First-Class Mail delivered on time—well below the 95% target
- Continued financial shortfalls despite previous legislative support, including the Postal Service Reform Act of 2022
Why It Matters for the Paper Industry
The USPS is a vital service for the paper and wood products industry. Nearly 39% of U.S.-produced communication papers, about $6.5 billion in product value, are delivered via the postal system.
The DFA strategy to increase revenue while lowering USPS costs isn’t working. Both mail volume and USPS profits are declining instead of improving.
Raising prices again, especially for commercial mailers who are the largest users, will lead to even more mail leaving the system. Increasing prices while decreasing service is not a winning strategy.
Looking Ahead
A new Postmaster General, Daniel Steiner, is slated to come on board in July. This is an opportunity for mail stakeholders to voice their concerns and advocate for halting the Delivering for America plan.
DFA should be replaced with policies that will allow the Postal Service to improve their financial stability and ensure the affordable, efficient delivery of mail and packages that meet customer needs.
AF&PA will continue to advocate for transparency and collaboration, ensuring any reforms support the industries and communities that depend on USPS.