News Media Alliance raises alarm on proposed postage increases

USPS has filed proposed postage increases that are, in some cases, seven times the rate of inflation, says the News Media Alliance.

The average increase for market-dominant mail, including first class, periodicals and marketing mail, is 6.9 percent. Periodical mail, which is used by local newspapers across the country, will see a rate increase of more than 8 percent on average, says a statement from the News Media Alliance.

“This increase will have detrimental effects on small businesses, including small-market and rural newspapers that cannot afford the increased costs, particularly as they strive to recover from the economic impact of COVID-19,” says the News Media Alliance in a statement on the proposed hikes.

These new rates, on top of rates increased earlier in the year, will push mail out of the system and, in some cases, may put companies out of business, says the statement.

The new rates come after a decision by the Postal Regulatory Commission on Nov. 30, 2020, that overturned a congressionally mandated inflationary price cap for mail products that USPS has a monopoly on delivering: first class, periodicals, and marketing mail. This change, which was based on USPS’s financial standing in 2017, allowed the Postal Service to raise rates that exceed the Consumer Price Index.

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