In a recent press release, the U.S. Postal Service (USPS) announced it would seek to increase prices for postage and shipping starting in early 2026. The move is the latest by the USPS to seek to remain competitive in the face of a rapidly changing shipping and logistics landscape.
Price changes are scheduled to go into effect on January 18, 2026, assuming there are no regulatory delays and that the Trump administration does not intervene in any way. The U.S. Postal Service is technically an independent agency of the federal government, but the governors on the Postal Service Board of Governors are nominated by the White House. The Board has approved the price increases as of now.
Price increases are part of the agency’s long-term profitability plan.
The press release noted that the move to increase prices was in line with its vision as part of a “10-year transformation plan for achieving financial sustainability and service excellence.”
The changes were officially submitted as part of formal notice that is required to be filed with the Postal Regulatory Commission (PRC) that governs USPS transparency and some operations along with the Postal Service Board of Governors.
Price increases across different USPS services
The new price increase will apply to select USPS services only. For example, the USPS has emphasized that First-Class mail stamps will be unaffected, with prices remaining the same. The services that will change are as follows:
- USPS Priority Mail: prices will increase by 6.6 percent
- USPS Priority Mail Express: prices will increase by 5.1 percent
- USPS Ground Advantage: prices will increase by 7.8 percent
- USPS Parcel Select: prices will increase by 6.0 percent
USPS is seeking to stem financial losses, hoping price increases will help.
USPS has emphasized that keeping prices indexed to general consumer prices is a key part of its transformation plan. For much of the past decade, the USPS has been the subject of Congressional and White House scrutiny from both Democratic and Republican politicians across the political spectrum due to its insolvency and financial issues. Many have argued that reform is sorely needed, and since the Covid era, some reforms have begun to be rolled out at the USPS.
In fiscal year 2025, the USPS announced a $9 billion net loss, $2 billion more than was originally projected. While the ultimate goal is for the agency to be “break even”, just narrowing the gap in its losses will be well-received. This move is possibly a step in that direction.
Many shipping options today means more competition for USPS
Although decades ago, there were not many shipping choices for consumers and businesses alike, today there are major carriers such as UPS, FedEx, DHL, OnTrac (formerly LaserShip), and others. This means USPS has major competition. Also, many e-commerce giants also handle their own shipping, making the market even more competitive than ever. This means USPS must stay competitive to keep customers using its services over the private-sector options that are out there.
