Postal Service, Facing Steep Losses, Seeks to Increase Prices

Americans would have to pay extra to mail a letter below a collection of worth will increase that the Postal Service proposed on Friday as a part of a plan meant to reverse $160 billion in projected working losses over the following decade.

Under the proposal, the worth of a first-class stamp would improve for the primary time since Jan. 27, 2019, to 58 cents from 55 cents. A postcard would improve to 40 cents from 36 cents and a global letter to $1.30 from $1.20.

The Postal Service said that the modifications would take impact on Aug. 29, if authorised by the Postal Regulatory Commission.

The proposed modifications are a part of a 10-year plan lately unveiled by the beleaguered company, which has been reeling under nationwide delivery delays and falling use of conventional mail.

The plan would additionally lengthen promised supply instances, scale back submit workplace hours, consolidate places, restrict the usage of planes to ship the mail and loosen the supply customary for first-class mail to inside 5 days within the continental United States from inside three days.

The Postal Service mentioned its goal was to obtain monetary stability and meet its 95 % goal for on-time supply, because it confronts heavy monetary losses and declining mail quantity. Over the final 10 years, mail quantity has plummeted by 46 billion items, or 28 %, the company mentioned.

The company, which is meant to be self-sustaining, has misplaced $87 billion previously 14 fiscal years and is projected to lose an extra $9.7 billion in fiscal yr 2021 alone.

The proposed price will increase got here after the Postal Regulatory Commission introduced new guidelines in November 2020 meant to give the company larger flexibility to set mail costs.

The postmaster basic, Louis DeJoy, a Trump megadonor who has confronted criticism over his dealing with of the company, mentioned in a press release that, for the previous 14 years, the company had “limited pricing authority to respond to changing market realities.”

The Postal Service and the Board of Governors “are committed to judiciously implementing a rational pricing approach that helps enable us to remain viable and competitive and offer reliable postal services that are among the most affordable in the world,” Mr. DeJoy mentioned.

Democrats have sharply criticized the 10-year plan. In March, Speaker Nancy Pelosi of California vowed to advance an infrastructure invoice “to ensure that the Postal Service has the resources needed to serve the American people in a timely and effective manner.”

Last week, a bipartisan group of senators additionally introduced legislation meant to deal with the company’s dire funds.

The laws would eradicate the requirement below a 2006 regulation that the Postal Service pre-fund its well being advantages for retirees and would combine its well being care with Medicare, which the senators and the Postal Service each estimate may save the company greater than $40 billion over the following decade.

Senator Rob Portman of Ohio, the highest Republican on the Homeland Security and Governmental Affairs Committee, mentioned in a press release that the laws, together with Mr. DeJoy’s 10-year plan, may “help turn around the substantial losses at the Postal Service over the last decade and ensure self-sustaining, high-quality postal service for all Americans.”

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