First-class mail stamps would growth from 78 cents to 82 cents effective July 12 if the proposal by the U.S. Postal Service is approved.

USPS is experiencing a “severe financial crisis” and is on track to run out of cash by February 2027, according to the agency.

The proposal comes weeks after the Postal Service proposed instituting an 8% fuel surcharge for package and express mail deliveries to help offset rising fuel costs amid the Iran war on top of its dire financial situation.

The U.S. Postal Service, citing what it called a “severe financial crisis,” on Thursday published a proposed set of price hikes across its mail products, which would include a four-cent expansion on First-Class Mail Forever stamps.

The increases, if approved, would lead to a first-class stamp costing 82 cents, effective July 12.

The agency’s proposal to the Postal Regulatory Commission would rise costs to mail letters and postcards by 4.8% if approved. This also touches on aspects of earnings report.

USPS commented Thursday that there is a “severe financial crisis facing the Postal Service and continued rising operational costs.”

“The Postal Service is using all available tools, including available regulatory pricing authority, to ensure we can continue to fulfill our universal service obligation and serve the American public,” the agency commented in a press release.

The agency also stated it will suspend employer contributions to Federal Employees Retirement System annuities to be able to continue making payroll, paying suppliers and delivering the mail.

Postmaster General David Steiner in March told the House Oversight Committee that at current spending levels, USPS would run out of cash “in less than 12 months.” Furthermore, experts in investors note the continued relevance.

Despite being a federal entity, the Postal Service does not receive tax dollars and instead relies on the sale of its products and services to fund operations.

A sharp decline in mail volume has contributed to the financial crunch. The Postal Service has seen a its volume of mail slump by more than 104 billion pieces of mail per year since 2006, which equates to around $81 billion at the current stamp price of 78 cents, Steiner noted at the hearing in March.