USPS SLAMS Families With Brutal 7.4% Hike

Row of USPS mail trucks parked in lot.

The U.S. Postal Service just slammed American families and small businesses with a brutal 7.4% rate hike, adding insult to injury after years of declining service quality and fiscal mismanagement under previous administrations.

Story Overview

  • USPS implemented a crushing 7.4% price increase on July 13, 2025, hitting mailing and shipping services
  • The agency posted a staggering $9.5 billion net loss in 2024 and projects $160 billion in losses over the next decade
  • Small businesses and families will bear the brunt of higher costs while USPS continues its pattern of biannual rate hikes
  • Mail volumes have plummeted 68% since 2007, yet the bloated bureaucracy refuses to address structural pension and benefit costs

USPS Financial Crisis Exposes Government Mismanagement

The Postal Service’s financial collapse represents decades of government incompetence and fiscal irresponsibility. Despite mail volumes crashing 68% since 2007 due to digital alternatives, USPS leadership has failed to restructure operations or address massive pension obligations. The agency’s $9.5 billion loss in fiscal 2024 demonstrates how government-run entities consistently burden taxpayers and consumers while refusing accountability for their failures.

Rate Hikes Punish Working Families and Small Business

This latest price increase directly attacks the backbone of American commerce—small businesses and hardworking families who rely on affordable postal services. First-Class Mail, postcards, and international shipping all face steep increases, while shipping services like Priority Mail and Ground Advantage jumped between 6.3% and 7.6%. These costs inevitably get passed to consumers, fueling inflation and making it harder for entrepreneurs to compete against big corporations.

Bureaucratic Pattern of Endless Price Increases

The USPS has adopted a troubling pattern of biannual rate hikes since 2021, treating American consumers like ATMs for their mismanagement. Postmaster General Louis DeJoy and the Postal Regulatory Commission filed these increases in April 2025, giving minimal notice before implementation. This bureaucratic approach ignores market realities and customer needs, prioritizing institutional survival over service excellence that Americans deserve from their postal system.

Long-Term Consequences for American Commerce

Experts predict continued rate increases unless Congress forces major reforms to address USPS’s structural problems. Small businesses may abandon postal services for private competitors like FedEx and UPS, potentially undermining the universal service mandate that justifies USPS’s monopoly on letter delivery. The agency’s refusal to modernize operations or reduce pension costs threatens to price out ordinary Americans while rewarding bureaucratic inefficiency.

President Trump’s administration now inherits this mess from years of postal mismanagement. Real reform requires addressing bloated pension obligations, streamlining operations, and prioritizing customer service over bureaucratic self-preservation. American families and businesses deserve better than endless price increases from a failing government agency that refuses to adapt to modern realities.

Sources:

USPS Shipping Rate Hike: What to Know

USPS Adjusts Prices

USPS Recommends New Prices for July 2025

USPS Announces 7.4% Rate Hike Effective July 13, 2025