NE Missouri News

Last week, U.S. Representatives Sam Graves (R-MO) and Emanuel Cleaver, II (D-MO) spearheaded a group of lawmakers urging the U.S. Postal Service (USPS) to cease implementing price hikes on stamps. This comes after the USPS implemented its fourth rate increase in the past eighteen months, prompting concerns about the negative impact on mail volume, customer volume, and the financial viability of the USPS itself.

In a letter addressed to USPS Board of Governors Chairman Roman Martinez, the lawmakers expressed their apprehension regarding the consecutive rate increases. They emphasized that while these hikes may contribute to increased profit, the USPS leadership has failed to acknowledge the adverse effects they have had on the agency's bottom line.

The letter stated, "Given last fiscal year's disastrous financial results and widespread service issues, we once again echo our concerns regarding the Delivering for America plan, and believe the USPS must pause and reassess its aggressive rate increase strategy."

The lawmakers pointed out that USPS management has indicated its intention to continue implementing postal rate increases twice yearly until at least 2026. Therefore, they emphasized that it is the responsibility of the USPS Board of Governors to intervene to prevent further damage to the financial viability of the U.S. mailing industry and the long-term sustainability of the USPS.

The lawmakers' concerns stem from the USPS's failure to break even despite the implementation of the Delivering for America Plan. Postmaster General Louis DeJoy introduced this plan in 2021 with the aim of making the USPS more efficient, competitive, and profitable. However, the agency incurred a loss of $6.5 billion in the last fiscal year, and it is projected to lose another $6.3 billion in Fiscal Year 2024, even after accounting for additional stamp price increases.

Representatives Graves and Cleaver have been vocal about their concerns over USPS performance issues, particularly in Western Missouri. In October 2022, they wrote a letter to Postmaster General DeJoy expressing their concerns about the agency's failure to provide six-day mail delivery as mandated by Congress. In December 2022, the Postal Service responded by citing low unemployment rates in the Kansas City region and encouraging residents to apply for USPS jobs, without presenting a plan to fulfill their obligation.

The lawmakers insist that these performance issues must be addressed and a plan put in place before considering any further price increases for consumers. They have previously called on Postmaster General DeJoy to address mail delivery delays and fulfill the USPS's legal obligation to deliver mail six days a week. As a result, the USPS Office of Inspector General conducted an audit of delayed mail and delivery operations in the Northland and Kansas City area, which was completed in August of last year.

The letter from the lawmakers can be found here [link to the official letter].

Overall, the lawmakers are urging the USPS to halt further rate increases on stamps due to concerns about the negative impact on mail volume, customer volume, and the USPS's financial viability. They believe that the USPS should reassess its aggressive rate increase strategy and that it is the responsibility of the USPS Board of Governors to intervene. Despite the reforms and rate increases introduced in the Delivering for America Plan, the USPS has not been able to break even financially, prompting the lawmakers to call for a pause and reassessment.