Your Money · Report · File No. 261113-299
Postal Service to raise package prices Jan. 17 after $6.5 billion loss
The Postal Service says it will raise shipping prices on Jan. 17, 2027, days after reporting a $6.5 billion loss. Stamp prices stay the same for now, but the postmaster general warns of 'drastic changes' to post offices.
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The U.S. Postal Service announced Thursday that it will raise shipping prices early next year. The news came days after the agency reported a $6.5 billion loss for fiscal year 2026 1. The Postal Service's Board of Governors approved the changes this week 1.
Domestic prices for Priority Mail, Priority Mail Express, USPS Ground Advantage and Parcel Select will rise an average of 5.9 percent. The changes are set to take effect Jan. 17, 2027 1. International shipping prices will climb about 7.9 percent 1.
What stays the same, and what does not
First-class mail rates and stamp prices will remain unchanged 1. That means the cost of mailing a bill or a card is not part of this round of increases 12.
Packages are a different story. An 8 percent transportation surcharge added in April will become a permanent fuel surcharge, and 3 more percentage points will be added for higher fuel costs. The total will be 11 percent 1. The agency plans to review it in July 2027 based on fuel prices in the first half of the year 1.
From Channel GOPBoyle answers White House letter threatening Democratic investigatorsRep. Brendan Boyle (questioned by Peter Alexander) · 318 plays · captioned, with the source named
The surcharge does not currently apply to international products 1. The changes still need review by the Postal Regulatory Commission, the federal body that oversees postal prices. That review must come before the Jan. 17 date 12.
A warning about post offices
The $6.5 billion loss is smaller than the $9 billion loss a year earlier. Postmaster General David Steiner still said the agency is in critical condition 1.
We will need to make drastic changes in the number of post offices and marketing mail service levels,
In March, Steiner told the House the agency was borrowing from its employees' retirement funds to keep operating. In August, he warned that deliveries could halt altogether in 2027 if funding goals were not met 1. A surcharge and a deal with DHL eCommerce for last-mile parcel delivery now have the agency projected to keep running until at least 2031 1.
The Postal Service has reported net losses of around $120 billion since 2007, as first-class mail use fell with the move to digital communication 1. Steiner said delivering to 170 million addresses six days a week costs $3.4 billion a year. He said 70 percent of routes lose money, as do about 58 percent of the 18,000 post offices 1.
What Congress may do
Rep. Brendan Boyle, a Pennsylvania Democrat, introduced a bill this week on possible closures. It would require the Postal Service to notify customers and certain officials if a post office in a leased building is at risk of closing. It would also require the agency to seek a new site in the same ZIP code 1.
Families count on their local post office.
President Donald Trump has floated privatizing the Postal Service or merging it with the Commerce Department 1. Mark Dimondstein, president of the American Postal Workers Union, argues that selling off the agency would lead to higher prices for postal services and for shipping at FedEx and UPS 1.
The Postal Service now looks to the new Democratic-controlled Congress when it takes office in January 1. That matters because the agency says it needs lawmakers to fix what Steiner called a broken business model 1.
The Record
- USPS reported a $6.5 billion loss for fiscal year 2026, down from $9 billion a year earlier 1.
- USPS announced domestic shipping prices will rise an average of 5.9% and international prices about 7.9%, with an 11% surcharge on domestic packages 1.
- Planned effective date of the new shipping prices, pending Postal Regulatory Commission review 12.
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Sources
- Newsweek, “USPS Announces Shipping Price Changes for 2027” (2026-11-13). newsweek.com/usps-announces-shipping-price-changes-for-2027-
- Value Added Resource, “USPS Plans Permanent Fuel Surcharge As Shipping Rates Set To Rise Again In January 2027” (2026-11-13). valueaddedresource.net/usps-fuel-surcharge-january-2027-rate
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