What you need to know about USPS cost-saving changes
The United States Postal Service is undergoing a transformation aimed at increasing efficiency and reducing costs. Here’s how it affects you:
The United States Postal Service has announced shipping rate increases for 2026.
The USPS filed a notice of change with the Postal Regulatory Commission (PRC), which oversees the postal service. The price increase for delivery services will take effect from January 18, 2026.
Despite rising prices for delivery services, the Postal Service is sticking to its original plan and announced in January that it would not increase prices for delivery services. In other words, the price of first-class postage stamps will remain unchanged.
The agency announced the changes in a news release on Friday, Nov. 14, saying the changes are part of the service’s 10-year transformation plan to deliver a financially sustainable and excellent service.
What will happen to these price increases?
Examples of price increase plans based on the Consumer Price Index and adjusted to market conditions include 5.1% for Priority Mail Express Service, 6% for Parcel Select, 6.6% for Priority Mail Service, and 7.8% for USPS Ground Advantage.
The Postal Service generally does not receive tax dollars for operating costs and relies on sales of postage, products and services, he said. Officials believe the new shipping fees will keep agencies competitive while providing needed revenue.
Price increase announced on the same day as 2025 financial report
News of the price increases came on the same day the Postal Service released its fiscal year 2025 financial report. The Postal Service’s controllable losses (net losses adjusted for non-operational costs such as workers’ compensation) increased from $1.8 billion in 2024 to $2.7 billion in 2025. This is an increase of $900 million, the Postal Service said.
The agency added that net loss decreased by $542 million compared to 2024, and operating revenue increased by 1.2%, totaling $80.5 billion. The increase in sales was primarily due to growth in the USPS Ground Advantage service and “strategic price increases,” the agency said.
Saleen Martin is a reporter for USA TODAY’s NOW team. She is from Norfolk, Virginia. – Email sdmartin@usatoday.com.
