The U.S. Postal Service (USPS) seeks a temporary 8 percent charge on some of its most widely used shipping products, including Priority Mail, as it looks to offset rising transportation costs.
USPS filed notice Wednesday with the Postal Regulatory Commission requesting approval for the increase, which would take effect April 26 and remain in place through January 17, 2027. The proposal is subject to final regulatory approval.
The filing comes as Postmaster General David Steiner has warned lawmakers that the Postal Service faces mounting financial pressure as traditional mail volumes continue to decline. Steiner has told Congress that without changes to existing law, the agency could run out of cash within a year.
“We have steadfastly avoided surcharges, and this charge is less than one-third of what our competitors charge for fuel alone,” the Postal Service said, adding that the increase would still leave it offering competitive shipping rates.
If approved, the 8 percent charge would apply to Priority Mail Express, Priority Mail, USPS Ground Advantage and Parcel Select. The agency said no other products or services would be affected, including First-Class Mail and postage stamps.
Steiner has urged lawmakers to lift a decades-old borrowing cap and grant USPS greater flexibility to raise prices to cover losses. He has also pointed to broader reforms as necessary to stabilize the agency’s long-term finances while maintaining nationwide service obligations.
Why USPS Says the Surcharge Is Necessary
Postal officials say the temporary surcharge is meant to address transportation costs that have surged faster than the agency can adjust its base prices. In filings with the Postal Regulatory Commission, USPS said fuel and contracted transportation expenses have risen sharply, while competitors like UPS and FedEx have long relied on fuel surcharges that fluctuate with market conditions.
The agency described the surcharge as a “time‑limited price adjustment” intended to bridge the gap until longer‑term pricing mechanisms can be considered.
Postmaster General Warns of Cash Crisis
The filing comes amid stark warnings from Steiner, who has told lawmakers the Postal Service could run out of cash within a year unless Congress allows it to borrow more money. In testimony and interviews with The Associated Press, Steiner said the agency may be unable to pay employees or vendors by early 2027 under current law.
The Postal Service has been constrained by a $15 billion borrowing cap that has been in place since 1990. Steiner has urged Congress to lift that cap, arguing it is the fastest way to stabilize USPS finances while broader reforms are debated. Without action, he has said the agency could be forced to consider unpopular measures like reducing delivery days or closing post offices.
“In order to ensure our survival beyond next year, we need to increase our borrowing capacity so that we don’t run out of cash,” Steiner told Congress last week. “The failure to do this could lead to the end of the Postal Service as we know it now.”
Declining Mail Volume Adds Pressure
USPS’s financial strain has been exacerbated by a long‑term decline in traditional mail. According to the agency’s most recent annual results, First‑Class Mail volume fell by 5 percent in fiscal year 2025, even as the number of delivery addresses continues to grow.
While shipping revenue has increased—driven in part by USPS Ground Advantage—those gains have not been enough to offset rising labor, transportation and infrastructure costs. The Postal Service reported a net loss of $9 billion in fiscal year 2025, following a $9.5 billion loss the year before.
What Happens Next
The Postal Regulatory Commission must approve the proposed surcharge before it can take effect on April 26. USPS has said it will reassess its pricing strategy when the surcharge expires in January 2027 and determine whether a permanent adjustment mechanism is needed.
For now, postal officials argue the surcharge is a limited but necessary step to keep the agency operating as fuel costs climb and Congress weighs whether to intervene.
Updates: 3/25/26, 7:44 p.m. ET: This article was updated with new information and remarks.
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