National Newspaper Association expresses concern over new postal rates slated for July 2024
Apr 11, 2024
FOR IMMEDIATE RELEASE
Contact: Lynne Lance, executive director, lynne@nna.org
PENSACOLA, Florida — The July 2024 proposed Periodicals rate increase amounts to an almost 10% bump for community newspapers that are already paying high rates for subpar service. The rate increase means newspapers are paying about 50% more for postage than three years ago.
The USPS is allowed to raise rates without direct approval by the Postal Regulatory Commission, with only some review by the Commission for illegalities and errors. This is the second increase in 2024, following a pattern of twice-a-year price hikes under Postmaster General Louis DeJoy with his Delivering for America plan.
“This increase, though excessive, was not surprising,” National Newspaper Association Chair John Galer of The Journal-News in Hillsboro, Illinois, said. “The model of continuing to raise rates while providing intensely bad service is becoming increasingly problematic for newspapers and our readers around the country.”
Galer continued, “Concerns about the ability of local newspapers to provide essential information to citizens during an election year is certainly part of this equation. The delays hinder our customers from receiving timely information.”
The Postal Service is driven by the recently developed Delivering for America plan introduced by DeJoy in 2021. The intention was to raise capital to help USPS compete for package and parcel business. Twice a year increases have been part of this plan that allows them to continue to raise prices under expanded rate authority granted by the Postal Regulatory Commission. The 2022 Postal Service Reform Act was expected to lighten the need for major price increases as Congress relieved some of the burden on USPS for retiree health benefits; however, under DeJoy, the benefits relief and the aggressive price increases have all been part of his plan to raise revenue.
The NNA is collaborating with members of Congress to require more accountability through improved regulation and data gathering. It urges its members to contact their Congressional delegations and U.S. Senators to bring attention to the situation.
NNA applauds Senator Gary Peters, D-Michigan, for holding a hearing next week to provide oversight of the USPS and question its leadership about the persistent financial losses of USPS — which were more than $6 billion in 2023 —and the lack of progress with Delivering for America.