Senate Holds Hearing on Postal Reform

By  | 

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 dollars 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 dollars 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.