Postal Service Rate To Increase By 3 Cents in 2014

The financially struggling Postal Service is seeking a 3-cent increase in the cost of mailing a letter and that would raise the price of a first-class stamp to 49 cents in 2014. The increase would raise about $2 billion in additional revenue a year.

The Postmaster General Patrick Donahoe warned a Senate Committee last week that the agency is in “the midst of a financial disaster.” Donahue wants Congress to give the Postal Service greater authority to improve its finances. “The Postal Service as it exists today is financially unsustainable,” he said.

The rate hike will require approval from the Postal Regulatory Commission because under federal law, rates cannot be raised over the rate of inflation, currently about 2%.

The Postal Service has already cut back 22,000 delivery routes, laid off 203,000 workers and trimmed its annual operating costs by $16 billion since 2006 in an attempt to reach profitability.