USPS Board Accepts PRC Decision; Rate Hike Takes Effect Jan. 8
This rate increase, the first since 2002, is needed to fulfill the requirement of a federal law enacted in 2003 requiring the postal service to establish a $3.1 billion escrow account. Without this federal mandate, a rate increase in 2006 would have been unnecessary, the USPS has said.
Among the rate adjustments, the single-piece rate for First-Class mail will rise from 37 cents to 39 cents and the postcard rate will increase 1 cent to 24 cents.
"The governors take this action mindful of our obligation to assure the financial integrity of the nation's postal system," board chairman Jim Miller said in a statement. "These increases will allow the postal service to meet the obligation established by Congress to place funds in escrow in 2006."