November 15, 2023
USPS loses $6.5B in 2023, Keep US Posted calls to end postage hikes
Nonprofit advocacy group Keep US Posted warned that postage rate hikes are contributing to the U.S. Postal Service’s mounting losses after the USPS announced a loss of $6.5 billion for the fiscal year 2023 — the same year it was projected to break even under Postmaster General DeJoy’s Delivering for America plan.
During the open session, the USPS Board of Governors announced the staggering $6.5 billion loss for the year, driven by mail volume declines of more than 9% and an over 2% drop in package volumes. The Board of Governors also announced that it anticipates a $6.3 billion loss next year and noted that the 10-year Delivering for America plan — which depended on package growth that has not materialized — could face changes.
“Louis DeJoy’s Delivering for America plan promised that the unprecedented postage increases which have taken place every six months since January 2022 would help USPS regain financial solvency, but they are clearly only triggering a dramatic loss in mail volume and fueling even more debt for the U.S. Postal Service,” said former Congressman Kevin Yoder (R-Kan.), executive director of Keep US Posted. “Twice-annual, above-inflation postage hikes are worsening the USPS’ financial woes and trapping it in quicksand, as even more mail is driven out of the system.”
Yoder added: “Rate hikes are sabotaging traditional mail, which still accounts for the majority of Postal Service revenue. Not only are the American people slated to endure an unprecedented fourth stamp hike in two years this January, but we’ll be bailing out the Postal Service, unless Congress acts now to provide more oversight. DeJoy shouldn’t receive any more blank checks from Congress to only raise postage rates, cut service and drive more debt.”