The United States Postal Service (USPS) is planning to raise the price of first-class mail stamps from 73 cents to 78 cents, effective July 13, 2025, as part of a proposal submitted to the Postal Regulatory Commission. The proposed price increase, which amounts to about 7.4%, also includes adjustments for domestic postcards and international mail services. According to Reuters, this change aims to address the significant financial challenges faced by USPS.

Historically, USPS has struggled with rising operating costs and declining mail volumes, which have impacted its financial performance. Since 2007, the agency has reported losses exceeding $100 billion, including nearly $10 billion in losses for the past fiscal year alone. The demand for first-class mail has dropped drastically due to the rising popularity of electronic communication methods, contributing to an 80% decline in volume since 1997. In a bid to stabilize finances, USPS implemented new service standards projected to save the agency roughly $36 billion over the next decade, as stated in an article from The Hill.

The recent price hike proposal comes amid significant leadership changes within the USPS, as Postmaster General Louis DeJoy resigned in March after nearly five years in charge, leaving the role temporarily to Deputy Postmaster General Doug Tulino. DeJoy's tenure was marked by attempts to reform USPS's pricing structure to reflect the realities of the modern economy, as he noted that the previous pricing model had been defective for over a decade, according to CBS News.

The postal agency is also navigating external pressures, including proposals by former President Donald Trump to potentially merge USPS with the Commerce Department, aiming to address its ongoing financial struggles. If the stamp price increase is approved, it will mark another step in USPS's long-term strategy to achieve self-sufficiency and maintain its critical role in delivering mail across the nation.