The U.S. Postal Service on Tuesday proposed an overall nearly 8% increase in postage rates, the latest in a series of stamp price hikes over the past three years.
The new prices are expected to come into effect in July, pending approval by an independent regulatory commission. Other changes include the price of Forever stamps increasing from 68 cents to 73 cents and the price of domestic postcards increasing from 53 cents to 56 cents.
The proposed changes, along with several others for 2021 and beyond, will see the service raise prices and delay some deliveries in an effort to recoup an estimated $160 billion in losses over 10 years. This is part of a 10-year plan.
The Postal Service has faced financial problems for years because it needed to pre-fund retiree health benefits for employees. Like other postal services around the world, the company is facing headwinds as fewer people are sending mail. Its operations are usually not funded by taxes.
The price increases proposed Tuesday must be approved by the Postal Regulatory Commission, an independent agency in Washington that oversees the Postal Service.