Why Postal Service Reform Matters
“The USPS receives no taxpayer funding aside from a recent COVID-related grant, and businesses generate more than 90 percent of its revenues. Rate hikes triple and quadruple (the rate of) inflation, paired with decreased service, will drive many U.S. companies either out of business or drive them away from using USPS for their business,” says Art Sackler, executive director of C21 in a statement released on behalf of members.
“With further attention from Congress, this legislation can help guarantee affordable, reliable mail and shipping options for recovering businesses large and small, and more importantly, preserve a lifeline for millions of Americans, especially those living in rural areas,” he adds.
The USPS relies on revenue from postage stamps sales, package shipping, and other products and services to fund its operations. Because of changes in revenue and volume, the USPS already announced a plan to increase rates in August, raising the price of a first-class stamp from 55 cents to 58 cents. The proposal also will affect other classes of mail.
The proposed increases “will impose new and substantial costs to the detriment of the American public and businesses, especially small businesses, nonprofits and charities, consumers generally … and, of course, the millions of jobs postal-reliant businesses support,” according to a letter from the coalition to the Senate Committee on Homeland Security in early June.