TOMS RIVER, NJ – Price increases will hit the tri-state area on Sunday when the U.S. Postal Service hits Americans with a price increase once again. The change will not only affect people living in New Jersey, New York and Pennsylvania, but the entire country, of course.
Effective Sunday, the United States Postal Service (USPS) will raise the price of first-class mail stamps from 63 cents to 66 cents. This increase is part of a series of price hikes aimed at offsetting inflationary pressures and the decline in first-class mail volumes. In January, stamp prices were raised from 60 cents to 63 cents, and now they will see another 5.4% increase with the approval of the Postal Regulatory Commission.
Stamp prices have risen by 32% since early 2019 when they went from 50 cents to 55 cents. According to USPS, these price adjustments are necessary to generate much-needed revenue for the Postal Service. The volume of first-class mail has decreased by 3% in the past year, reaching its lowest level in 50 years, and it has declined by 51% since 2006.
First-class mail is the mail class that generates the highest revenue for USPS, accounting for $24.2 billion, or 31% of the total revenue of $78.8 billion in 2022. To mitigate projected losses, USPS has implemented regular price increases, adopted reforms, and received financial relief from Congress, cutting its projected losses by more than half through 2031.
USPS plans to raise stamp prices twice a year and expects this new pricing policy to generate an additional $44 billion in revenue by 2031. In April 2022, President Joe Biden signed legislation providing USPS with $48 billion in financial relief over a decade and requiring future retirees to enroll in a government health insurance plan.
Furthermore, USPS has requested accounting changes for retirement contributions from the Biden administration. If approved, these changes would eliminate amortization payments and potentially save USPS $2 to $3 billion annually and up to $34.6 billion over 10 years.