Mirror Review
July 14, 2025
Summary:
- The United States Postal Service (USPS) is increasing the price of a First-Class Mail Forever stamp from 73 cents to 78 cents.
- This price change will take effect on July 13, 2025, and is part of a broader increase of approximately 7.4% on postal services.
- The USPS has stated that this rate adjustment is a necessary step to achieve financial stability.
The price of a postage stamp is set to increase again, a move the US Postal Service says is crucial for its financial health.
But is this 5-cent jump for USPS Stamps just about financial stability, or does it have a bigger economic story?
The reality is far more complex than simple inflation.
This is happening because the USPS is caught between a legal mandate to serve every American and the modern challenges that have affected its traditional revenue streams.
The Hidden Cost: Why USPS Stamps Support a National Network
A key reason for the price hike is due to a unique burden the USPS carries: the “Universal Service Obligation” (USO).
1. A Mandate to Serve Everyone:
Unlike private companies like UPS or FedEx, which can choose profitable routes, the USPS is required to deliver to every single address in the nation, regardless of how remote or expensive it is.
This creates a massive, often underestimated, fixed cost that private carriers do not have to bear.
2. The “Last Mile” Challenge:
The most expensive part of delivery is often the “last mile” to a recipient’s doorstep, especially in rural areas.
As the volume of letters has decreased, the cost to service each delivery point has gone up and has placed huge pressure on the USPS’s financial model.
In short, the price of a stamp helps subsidize this vast, universal network.
In this way, the USPS acts less like a business and more like a public utility.
It serves as an economic lifeline for small businesses, rural communities, and even democratic functions like mail-in voting.
Therefore, the cost of a stamp is partly the price of maintaining this essential public service.
A Forced Evolution in a Digital World
The decline of traditional mail has forced the USPS to reinvent itself, a costly and necessary evolution.
3. The Decline of First-Class Mail:
The rise of email, online bill payments, and digital notifications has caused a major drop in First-Class Mail, which was historically the most profitable segment for the USPS.
4. Back to Packages:
To counter this, the USPS has aggressively moved into the e-commerce package delivery market.
While this has opened up new revenue, it has also demanded huge investments in new vehicles, modern sorting facilities, and updated equipment.
These necessary upgrades are expensive and often require borrowing, contributing directly to the need for price increases to fund them.
Regulations and Economic Pressures
The USPS doesn’t operate by itself. It faces strict oversight and the same economic issues as any other large enterprise.
5. Regulatory Oversight:
The Postal Service cannot raise prices freely. It operates under the oversight of the Postal Regulatory Commission (PRC), which has specific rules governing price adjustments.
While the Postal Service Reform Act of 2022 provided huge relief by addressing a mandate to pre-fund retiree health benefits, the financial effects of that past burden still remain.
6. Inflationary Pressures:
The USPS is heavily impacted by inflation, just like any other business. As a massive logistical operation, it is particularly vulnerable to rising costs for fuel, labor, and supplies.
What are the New Prices of USPS Stamps?
The July 2025 price hike is part of a wider increase of about 7.4% across USPS services. Here are some of the key changes:
| Product | Old Price | New Price |
| Forever Stamps / Letters (1 oz.) | 73 cents | 78 cents |
| Metered Letters (1 oz.) | 69 cents | 74 cents |
| Domestic Postcards | 56 cents | 62 cents |
| International Postcards / Letters (1 oz.) | $1.65 | $1.70 |
| Additional Ounce for Letters | 28 cents | 29 cents |
The Ripple Effect of a Price Hike
While necessary for the USPS’s future, these increases have a tangible impact.
Small businesses, non-profits, and direct mail marketers, who depend on the postal service for their operations, will feel the economic effects the most.
Yet, the latest price hike for USPS Stamps is like an investment in the future.
It’s a measure intended not just to cover current costs, but to modernize infrastructure and ensure the Postal Service can remain a sustainable and reliable part of America for years to come.
The USPS argues that even with the increase, its rates are competitive, and the value of its universal service remains high, highlighting the ongoing tension between cost and its unique public mission.
