USPS says “forced” price reductions will cost $2 billion annually

Prices for certain postal products and services, including the “Forever” stamp, will decrease April 10, leading to what the United States Postal Service says worsening financial conditions.  In a news release from the USPS, the agency said the reduction is because of absent Congressional or court actions to extend exigent surcharges for mailing products and services. The USPS said the decrease in pricing is a mandatory action that will worsen the Postal Service’s financial condition because it will reduce revenues and increase net losses to the tune of $2 billion.

In a statement, the USPS Postmaster General and CEO, Megan J. Brennan said, “The exigent surcharge granted to the Postal Service last year only partially alleviated our extreme multi-year revenue declines resulting from the Great Recession, which exceeded $7 billion in 2009 alone. Removing the surcharge and reducing our prices is an irrational outcome considering the Postal Service’s precarious financial condition.”

An order from the Postal Regulatory Commission is requiring a 4.3 percent surcharge to be reversed after the USPS will have made $4.6 billion by the April 10 mark, according to the release.

Surcharge removal will affect the following products and services:

Letters (1 oz)  will decrease from 49 cents to 47 cents.

Letters additional ounces will decrease from 22 cents to 21 cents.

Letters to all international destinations will decrease from $1.20 to $1.15.

Postcards will decrease from 35 cents to 34 cents.

Commercial decreases can be found at

The release said the Postal Service receives no tax dollars for operating expenses and relies on the sales of postage, products and services to fund its operations.