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Americans may soon see sharply higher costs at the post office as the United States Postal Service plans significant price increases to recover from a $9 billion loss in 2025.

Postmaster General David Steiner told lawmakers that the Postal Service is considering raising first-class stamp prices to nearly $1 as part of a strategy to boost revenue and ensure operations continue. The USPS has faced declining mail volumes and rising costs, contributing to its substantial financial shortfall.

Critical Financial Juncture

Speaking to the House Oversight Committee, Steiner warned that the Postal Service could run out of cash within 12 months if no changes are made. “I am not sure that the American public is aware that the Postal Service is at a critical juncture,” Steiner said via CBS News. He added, “Less than a year from now, the Postal Service will be unable to deliver the mail if we maintain the status quo.”

Significant Price Hike Proposed

Steiner outlined that first-class stamp prices could rise to between 90 and 95 cents, up from the current 78 cents. “There are only three things that any company can do to improve financial performance — sell more products, raise prices, or cut costs,” he said. “On the pricing side, we need to look for higher prices on both our package and mail products.”

The Postmaster General noted that such a hike “would largely solve our controllable loss” and emphasized that the current 78-cent rate remains the lowest among industrialized nations. By comparison, France charges about $3 and the United Kingdom roughly $2.50 for first-class mail — over much shorter distances. “We deliver from the tip of Puerto Rico to the tip of Alaska for 78 cents,” Steiner said.

First-class stamp prices last increased in July, climbing from 73 cents to 78 cents. This proposed jump would mark a much steeper rise, reflecting the USPS’s urgent need to stabilize its finances.