Senate Holds Hearing on Postal Reform
FOX 47 News
A hearing will be held on Capitol Hill to discuss ways to reform the US Postal Service. Postmaster General Patrick Donahoe wants to raise prices to 49-cents by next year.
A first-class stamp currently costs 46 cents. The Postal Service lost $16 billion last year, and Donahoe says he expects the agency to lose six billion this year.
Much of its money woes stem from a congressional mandate to pay $5 billion a year for retiree health care benefits. In addition to discussing the stamp hike proposal, today's hearing will also look for "out of the box" ideas to fix the cash-strapped agency.
The rate hike proposal must be approved by the independent postal regulatory commission for it to go into effect.