In a bid to address its ongoing financial challenges, the financially beleaguered US Postal Service (USPS) has filed a notice with its regulators to increase the prices of First-Class "Forever" stamps. If approved by the Postal Regulatory Commission, the price of these stamps will rise from 68 cents to 73 cents, marking yet another price hike for the struggling federal agency.

The planned increase, which is expected to take effect in July, would raise the cost of mailing services products by nearly 8%. Stamp prices alone have surged by a staggering 36% since 2019 when they were priced at 50 cents. Earlier this year, the Postal Service implemented a two cent price increase in January, following a three cent hike in July 2023.

According to a statement released by the USPS, these adjustments are necessary to achieve the financial stability outlined in the agency's 10-year plan introduced by Postmaster General Louis DeJoy in 2021. The aim of the plan is to improve competitiveness and modernize the USPS. The statement also highlights that USPS prices remain among the most affordable worldwide.

In addition to the increase in First-Class stamp prices, other changes include a rise in domestic postcard prices from 53 cents to 56 cents, and an increase in international postcard prices from $1.55 to $1.65.

Although it is not common, there is a possibility that regulators could decline the USPS's request. In 2010, the Postal Regulatory Commission rejected a price hike due to the USPS's failure to quantify the impact of the recession on its finances and demonstrate how its rate request related to the resulting decline in mail volume.

The decline in First-Class mail is attributed to the growing popularity of online communication. Over the past decade, there has been a 50% decrease in the number of individual letters being sent each year.

Postmaster General Louis DeJoy, who was appointed during the Trump administration, has been implementing sweeping changes in an effort to improve the agency's finances. However, the USPS still expects a projected loss of $6.3 billion in 2024.

As the USPS awaits a decision from regulators on its price increase request, the agency continues to face significant financial challenges amidst changing communication trends and declining mail volume.