The US Postal Service (USPS) has proposed to increase the cost of a first-class stamp by USD 0.03. If the proposal goes through, mailing a letter could soon cost USD 0.49. The Board of Governors of the USPS had submitted its hike proposal to the Postal Regulatory Commission (PRC). Federal Law prevents the USPS from raising its prices to more than the inflation rate without getting approval from the PRC. In the event that the PRC would approve the proposal, the new postal rate would be enforced on January 26 next year.

The proposal for an increase came as the USPS earlier acknowledged that it was in the midst of a financial disaster. In his testimony to the US Senate Committee on September 19, Postmaster General Patrick R. Donahoe said he projected USPS to lose USD 6 billion in 2013. In the past two years, the agency had posted net losses of USD 20 billion. It also defaulted on mandated USD 11.1 billion retiree health benefits to the US Treasury. Donahoe also said USPS would default another USD 5.6 billion in retiree health benefits payments due at the end of this month.