USPS Cost Problems 4-20-25

The US Postal Service is running a $6.9 billion deficit, despite recent modernization investments. More automation is needed and additional services would help. USPS could increase its revenue by taking a role in US Census Counts for Commerce Dept. 

The US established the Postal Service as a Federal Power in the original US Constitution, but has moved from letter writing to Internet Surfing.

The cost of a One Ounce or First Class Stamp has increased from 2 cents in 1865 to 73 cents in 2025.

Year  Cents

1865 .02

1932 .03

1958 .04

1968 .06

1971 .08

1974 .10

1975 .13

1978 .15

1981 .20

1988 .25

1995 .32

2002 .37

2008 .42

2018 .50

2022 .60

2024 .73

https://en.wikipedia.org/wiki/History_of_United_States_postage_rate

Before the Internet an I-Phones, everybody used USPS. They paid their monthly bills by check, sent Holiday and Birthday Cards and pictures by Mail and sent them all through the USPS Mail.

Checks are not dead. In fact, according to a recent survey by GOBankingRates, 17% of Americans are still writing checks on a monthly basis — and 15% send a few checks every month.

 According to the survey, 23% of Gen X Americans are still sending checks on a monthly basis. Unsurprisingly, younger generations are not sending as many checks, but it is interesting that those age 65 and older are sending the least amount — only 13% send monthly checks.

According to the survey, 23% of Gen X Americans are still sending checks on a monthly basis. Unsurprisingly, younger generations are not sending as many checks, but it is interesting that those age 65 and older are sending the least amount — only 13% send monthly checks.

When it comes to Gen Z and Millennials, nearly 50% of them did not send one check in the last year. This should come as no surprise, as digital payment methods are everywhere these days.

https://finance.yahoo.com/news/many-still-regularly-write-checks-200011807.html

The U.S. Postal Service (USPS) has faced significant financial losses for years, with a projected $6.9 billion net loss for FY 2025, despite a 10-year reform plan, and blames factors like retiree costs, inflation, and declining mail volume. 

Here's a more detailed breakdown:

Financial Challenges:

USPS has struggled to cover its expenses and debt for over 15 years, relying on increasing debt and unfunded liabilities to continue operations. 

The agency's expenses are growing faster than its revenues, partly due to declining mail volume, especially for its most profitable product, First-Class Mail. 

USPS reported a $9.5 billion net loss in FY 2024 and anticipates a $6.9 billion loss in FY 2025. 

The last time USPS saw a net profit was in fiscal 2022, with a $56 billion net profit. 

Factors Contributing to Losses:

Retiree Costs and Workers' Compensation: A significant portion of the losses is attributed to retiree pension liabilities and non-cash workers' compensation adjustments. 

Declining Mail Volume: The shift to electronic communication has led to a decline in mail volume, impacting the USPS's revenue. 

Congressional Mandates: Some experts suggest that a congressionally mandated retirement healthcare funding program, which no other government agency is required to observe, contributes to the financial shortfall. 

USPS's Response: Postmaster General Louis DeJoy has implemented a 10-year reform plan, "Delivering for America," aimed at improving the agency's financial outlook and operational efficiency. 

The plan includes cost-cutting measures, network optimization, and strategic pricing and product strategies. 

USPS has raised postage rates twice in 2024, with a two-cent per stamp increase in January and a second boost in July, which raised the cost of a Forever stamp to 73 cents. 

Future Outlook: Despite the reform efforts, USPS continues to face financial challenges, and projections show the agency will end FY 2025 with a $6.9 billion net loss. USPS management remains steadfast that its current course is the correct one, despite the mounting losses. 

https://www.google.com/search?q=usps+losing+money+for+years

Comments

USPS could increase its revenue by taking a role in US Census Counts for Commerce Dept. USPS could develop its Name and Address database to run in real-time with open access to other Federal databases to ensure Election Integrity and Proof of Citizenship. Law Enforcement also benefits from USPS records to track and prevent identity theft and fraud. AI data analysis would catch name changes that don’t match previous addresses.

Full Identity discovery methods need to be maintained including fingerprints, birth certificates, signatures, previous names, previous addresses, photo ID Drivers Licenses, Passports, blood type, Facial Recognition and DNA. Shared databases, frequent review and updating of data and retention of original document copies are required. AI will do the rest.

Norb Leahy, Dunwoody GA Tea Party Leader