USPS wants to hike stamp prices in July. It's just the beginning of a plan to raise prices at 'an uncomfortable rate.'

Postage stamp price going up

The U.S. Postal Service is expected to increase prices in July, raising the cost of a Forever stamp from 58 cents to 60 cents. And that may not be the only price hike in the near future.

Postmaster General Louis DeJoy said May 5 he expected the Postal Service to continue to raise prices "at an uncomfortable rate" until the agency becomes self-sufficient.

The USPS proposed the rate increase a month ago, on April 6, the same day President Biden signed the Postal Service Reform Act of 2022, legislation meant to bolster the agency, which has faced financial challenges as well as stiff competition from shippers such FedEx and UPS.

In addition to ensuring six-day-a-week mail delivery, the new law is expected to save the agency an estimated $50 billion over the next decade, DeJoy said. That comes primarily from ending the requirement of the USPS paying into a health benefit fund for current and retired employees for 75 years into the future. Retired postal employees now are required to enroll in Medicare.