The United States Postal Service (USPS) has proposed raising the cost of a First-Class “Forever” stamp from 78 cents to 82 cents, a roughly 5% increase that could take effect as early as July 2026 if approved by regulators, reported Bloomberg.
The proposal is part of a broader effort to stabilize the agency’s finances, which have been under pressure for years. USPS officials say the increase reflects rising operational costs, including transportation and fuel, as well as a continued decline in traditional mail volume.
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First-class mail — historically the postal service’s most profitable product — has dropped dramatically, falling from about 220 billion pieces in 2006 to roughly half that amount in recent years.
Financial Challenges Are Significant
The USPS has reported cumulative losses of about $118 billion since 2007 and warned it could run out of cash within the next year without major changes. In its most recent reporting, the agency posted a quarterly loss of $1.25 billion, underscoring the urgency behind the proposed rate hikes.
Postal leaders argue that price increases are one of the few tools available to address these deficits. Postmaster General David Steiner has indicated that even higher rates — potentially as much as 90 to 95 cents per stamp — may be necessary in the future to fully stabilize finances, according to CBS News.
The proposal has drawn criticism from some industry groups, which argue that raising prices while reducing service levels could further drive customers away from traditional mail. Critics say the strategy risks accelerating the very decline the Postal Service is trying to offset.
The stamp increase must still be approved by the Postal Regulatory Commission before taking effect, continuing a steady upward trend in postage prices; the cost of a Forever stamp has already risen from 55 cents in 2020 to 78 cents today.
Despite the increases, USPS officials note that U.S. postage rates remain relatively low compared with other countries.
FedEx and UPS Show Different Outlooks
Fellow shipping and delivery establishments FedEx Corp (NYSE:FDX) and United Parcel Service Inc (NYSE:UPS) are showing diverging financial performance in 2026.
FedEx has reported strong momentum, posting quarterly revenue of about $24 billion and solid profitability, while also raising its full-year outlook to roughly 6% to 6.5% revenue growth, reflecting improved demand and cost efficiencies.
Meanwhile, UPS has faced more muted performance, with revenue declining about 2.6% in 2025 to $88.7 billion, as volumes softened and the company adjusted its business mix, according to company guidance and analyst reports.
While UPS continues to focus on margin improvement and expects about $89.7 billion in 2026 revenue, FedEx’s stronger growth outlook suggests it is currently outperforming its rival.
Photo: Rix Rix Photography via Shutterstock
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