The U.S. Postal Service announced that it will increase prices for most shipping services beginning January 18, 2026, pending regulatory approval, as the self-funded agency works to narrow persistent financial losses.
The changes, already approved by the USPS Board of Governors, would raise Priority Mail rates by about 6.6%, Priority Mail Express by 5.1%, USPS Ground Advantage by 7.8%, and Parcel Select by 6%. Prices for mailing services, including the cost of a First-Class stamp, will remain unchanged in January.
The move follows the release of fiscal 2025 results showing a $9 billion net loss, slightly better than the $9.5 billion the prior year. Operating revenue rose 1.2% to $80.5 billion, helped by growth in the Ground Advantage service and earlier price adjustments.
Postmaster General David Steiner said the agency must “explore new revenue opportunities and public policy changes to improve our business model” to correct ongoing financial imbalances, Newsweek reported.
Chief financial officer Luke Grossmann described the results as reflecting “the difficulties of our mandated cost structure and the continued decline in volume,” partially offset by cost-control efforts and use of pricing authority, according to Newsweek.
Unlike most federal agencies, the Postal Service receives no taxpayer funding for operations and depends almost entirely on revenue from postage and shipping.
At a USPS Board of Governors meeting last week, Steiner noted that customers send about 110 billion fewer pieces through the U.S. mail annually than 18 years ago, representing over $85 billion in lost revenue.
“No business could overcome that magnitude of a revenue drop. So, it is not surprising that the Postal Service has struggled,” Steiner said.
Even though the cost of mailing letters and packages in the U.S. has increased over the years, it is still relatively inexpensive compared to other countries.
“We deliver at a uniform price, at a speed and reliability unmatched when compared to the world. The fact that you can mail a letter from San Juan, Puerto Rico, to Fairbanks, Alaska — a distance of about 3,900 miles — for just 78 cents is astonishing,” Steiner said.
“Especially when in Italy, for example, a country 33 times smaller than the United States, the price of a stamp is about $3. In France, the price is $1.60, and the longest distance that letter will travel in France is about 600 miles. … And in Estonia, a country 210 times smaller than the United States, the price of a stamp is over $2,” Steiner said, adding that “We deliver at a uniform price, at a speed and reliability unmatched when compared to the world.”
The proposed increases, filed with the Postal Regulatory Commission on November 14, are part of a broader modernization plan intended to keep the agency competitive while sustaining six-day delivery nationwide.
The commission will review the filing before the new rates can take effect.