USPS Announces Major Price Hikes Amid $9 Billion Loss

The United States Postal Service (USPS) has revealed significant price increases for its services, set to take effect on January 18, 2026. This announcement comes as the USPS grapples with a staggering $9 billion loss for the fiscal year 2025. The decision, approved by the USPS governors and reported to the Postal Regulatory Commission (PRC), has sparked considerable dissatisfaction among users and small business owners reliant on affordable shipping options.

The forthcoming price adjustments will impact several key services. Priority Mail rates will rise by 6.6%, while Priority Mail Express will see a 5.1% increase. USPS Ground Advantage will experience a 7.8% hike, and Parcel Select will increase by 6%. In a statement addressing these changes, the USPS confirmed that the cost of a First-Class stamp will remain unchanged, stating, “As previously announced, the postal service will not raise January prices for mail services.”

Financial Challenges Facing USPS

Despite some slight improvements in operational metrics, the USPS continues to confront serious financial challenges. The organization reported a controllable loss of $2.7 billion for fiscal year 2025, which marks an increase from $1.8 billion in the previous year. In light of these financial struggles, Postmaster General David Steiner emphasized the need to explore new revenue opportunities and public policy changes. He stated, “To correct our financial imbalances, we must operate more efficiently and compete more effectively to better fulfill our public service mission.”

Many users have taken to social media to express their frustration over the impending price increases. Comments reflect concerns about the impact on small businesses and consumers who rely on USPS for shipping. One user noted, “How the heck are they raising rates again in January? They already have a ‘holiday’ surcharge until January. Why do they keep losing $? They’re really hurting small businesses and consumers. They should be privatized.” Another pointed out the challenges of finding affordable shipping alternatives, stating, “We’ve all gotten into trouble: we can’t find what we need in the city anymore, we have to buy online and pay $$$ for shipping.”

The Role of USPS in the American Economy

Founded in 1775, the USPS is one of the oldest postal entities in the United States. As an independent agency of the federal government, it plays a critical role in delivering mail and packages both domestically and internationally. Its services encompass a wide range, including sending letters, packages, certified mail, express shipments, and business solutions such as direct mail and volume discounts.

As the USPS prepares for these price adjustments, the future of affordable shipping remains uncertain for many customers and businesses. The organization’s efforts to balance financial viability with its public service commitments will be closely monitored as it navigates these challenges.