Higher U.S. mailing rates coming

The U.S. Postal service has announced its first quarterly profit since fiscal 2022, which was the first profit in 15 years. Net income at the USPS reportedly was $144 million for the first quarter of its fiscal 2025, compared to a net loss of $2.1 billion for the same quarter last year. 

Modernization of the system and aggressive price increases were the primary reasons for the profit. Pricing for nonprofit rates have not been spared. The anticipated increases reported are premised on USPS using all of its rate authority. The anticipated increases are: 

• First Class: 8% (an 80-cent first class stamp) 

• Marketing Mail Letters: 11.6% 

• Marketing Mail Flats: 13.6% 

• Periodicals: 9.4% 

There will be changes to the workshare discount system. Discounts for delivery to network distribution centers (DNDC) are being discontinued and those for sectional center facility delivery (DSCF) will be decreased. Co-mingling might become the money-saver of last resort for many, according to The Nonprofit Alliance. 

The Postal Regulatory Commission (PRC) in February granted a USPS request to get a refund from all mailers for the revenue it did not receive due to mailers’ having taken advantage of USPS promotional discounts. The July rates will include the predicted cap amounts plus an additional amount attributable to the PRC-approved claw-back. 

The mail will also be slower, with the USPS is expected to add a day to its service standards which will, among other things, add a day to business reply mail delivery. 

The Postal Service is an independent agency governed by a board nominated by the president and confirmed by the U.S. Senate. That board, which by law must be bipartisan, jointly hires and oversees the postmaster general and is responsible for major decisions at the agency, such as service and price changes.