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Senate Holds Hearing on Postal Reform

Senate Holds Hearing on Postal Reform

By FOX 47 News. CREATED Sep 26, 2013

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.