The US Postal Service announced plans to raise the price of its first-class stamps from 55 to 58 cents as part of Postmaster Louis DeJoy’s 10-year plan “to achieve financial sustainability.”
Playing Status: The Postal Service has petitioned the Postal Regulatory Commission for the new prices to come into effect on Aug. 29.
- The PRC in November announced new rules that gave the USPS “higher pricing powers,” according to USPS Chief Financial Officer and Executive Vice President Joseph Corbett. the following year, including additional increased rates.
The price change will increase overall product and service costs by 6.9% this summer. and first class letters will increase by 6.8%
The big picture: In March, DeJoy announced USPS̵7;s 10-year “Deliveries to America” plan that would reduce postal hours and carry longer first-class delivery time frames, the Washington Post reported at the time.
- In response, Democratic lawmakers introduced the DEJOY Act, a bill to block planned changes.
What he said: “Over the past 14 years, the postal service has limited pricing power in response to changing market realities,” DeJoy said in a statement.
- “It is part of our 10-year plan to achieve financial sustainability and service excellence. The Postal Service and the Board of Governors are committed to a prudent approach to reasonable pricing that helps us remain competitive. and provide reliable postal service one of the most affordable in the world,” he added.
What to watch: The mailing group is challenging the new rates in the DC Circuit Court of Appeals, according to the Washington Post.