The U.S. Postal Service, citing what it called a “severe financial crisis,” on Thursday announced a proposed set of price hikes across its mail products, which would include a four-cent increase on First-Class Mail Forever stamps.
The increases, if approved, would lead to a first-class stamp costing 82 cents, effective July 12.
The agency’s proposal to the Postal Regulatory Commission would increase costs to mail letters and postcards by 4.8% if approved.
Postmaster General David Steiner in March told the House Oversight Committee that at current spending levels, USPS would run out of cash “in less than 12 months.”
Despite being a federal entity, the Postal Service does not receive tax dollars and instead relies on the sale of its products and services to fund operations.
A sharp decline in mail volume has contributed to the financial crunch. The Postal Service has seen a its volume of mail decrease by more than 104 billion pieces of mail per year since 2006, which equates to around $81 billion at the current stamp price of 78 cents, Steiner said at the hearing in March.