Order Code RS22611
Updated April 6, 2007
Common Questions About
Postage and Stamps
Kevin R. Kosar
Analyst in American National Government
Government and Finance Division
Summary
Constituents and interest groups often approach congressional offices with
questions about postage and stamps. This report provides brief answers to commonly
asked questions and provides sources where congressional staff may learn more about
these topics.
What Is the Difference Between Postage and Stamps?
Postage is the price a customer pays to have the U.S. Postal Service (USPS) deliver
a letter or package. In order to show that the postage has been prepaid on a letter or
package to be delivered, various postage indicia have been created.1 Stamps are one type
of postage indicia.2 Stamps may be issued by USPS alone.3 Some of the other forms of
postage that look like stamps, such as “customized postage,” may be produced by private
firms with the approval of USPS.
1 According to a spokesperson at USPS, there are two instances in which a letter may be mailed
without an indicia. If a letter is sent by a member of the U.S. armed services deployed overseas,
he or she may write “free mail” in the upper right corner of an envelope. The Department of
Defense reimburses USPS for the expense of delivering this mail. Also, certain types of mailings
may be sent without postage to persons who are visually impaired. Congress provides an annual
appropriation to reimburse USPS. See USPS, Mailing Free Matter for Blind and Visually
Handicapped Persons: Questions and Answers, Publication 347 (Washington: USPS, May 2005),
at [http://www.usps.com/cpim/ftp/pubs/pub347.pdf].
2 The exceptions are the Federal Migratory Bird Hunting and Conservation Stamps, also known
as “duck stamps.” They are not valid for postage. Duck stamps were created in 1934 and serve
as a federal license for hunting migratory birds (16 U.S.C. 718-719). Duck stamps also raise
revenues for the conservation of wetlands. For further details, see the website of the Federal
Duck Stamp Program at [http://www.fws.gov/duckstamps/].
3 39 U.S.C. 404(a)(4) empowers USPS “to provide and sell postage stamps [...] and to provide
such other evidences of payment of postage and fees as may be necessary or desirable.”

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What Kinds of Stamps Exist?
Various types of stamps exist, including definitive stamps, commemorative stamps,
and semipostal stamps. Each of these types of stamps is described below.
Definitive Stamps. Definitive stamps are issued by USPS for regular customer
use. Unlike a commemorative stamp, a definitive stamp (e.g., U.S. flag stamp) is issued
year after year, and the quantity produced is not capped. These stamps come in a wide
range of denominations (e.g., 2 cents, 29 cents,$5.00) and carry a substantial range of
images, including animals (e.g., birds); famous persons (e.g., Presidents George
Washington and Andrew Jackson); and esteemed household items (e.g., Tiffany lamp).4
Commemorative Stamps. Each year, USPS issues stamps to commemorate or
celebrate persons, anniversaries, and things.5 In 2007, for example, USPS will release
stamps featuring images of the poet Henry Wadsworth Longfellow, the 100th anniversary
of Oklahoma’s statehood, and the Hershey Kiss candy.6 Typically, each commemorative
stamp has a limited production run and is sold for only one year. Though usable as
postage, commemorative stamps often are held by collectors and sold privately at auctions
and through other means (e.g., online).7
Semipostal Stamps. By law, semipostal stamps are “issued and sold by the
Postal Service, at a premium, in order to help provide funding for a cause.”8 Thus, a first-
class definitive stamp may be purchased for 39 cents, but a first-class semipostal costs 45
cents. USPS has the authority to decide what causes to support through the sales of
semipostal stamps.9 Nevertheless, all semipostal stamps issued thus far by USPS have
been compelled by statute. Congress has required USPS to issue semipostal stamps to
raise funds for breast cancer research (P.L. 105-41; 39 U.S.C. 404), domestic violence
prevention programs (P.L. 107-67, Title VI, Section 653; 115 Stat. 558), and assistance
to the families of rescue workers killed or disabled in the terrorist attacks of September
11, 2001 (P.L. 107-67, Title VI, Section 652; 115 Stat. 557).
Forever Stamps. USPS introduced Forever stamps in 2007. A Forever stamp
costs the same as a standard first-class definitive stamp, however, it may be used as
first-class postage on standard envelopes weighing one ounce or less forever. Thus, if a
customer buys a Forever stamp for 41 cents, and two years later the price of first-class
4 Examples of common postage stamps may be found on the website of the U.S. Postal Service
at [http://shop.usps.com/].
5 CRS Report RS20221, Commemorative Postage Stamps: History, Selection Criteria, and
Revenue Potential, by Kevin R. Kosar.
6 USPS, “The 2007 Commemorative Stamp Program,” Oct. 25, 2006, at [http://www.usps.com/
communications/newsroom/2007stamps/].
7 The online auction site, eBay, for example, features thousands of stamps for sale at
[http://buy.ebay.com/stamps].
8 39 U.S.C. 416(a)(1).
9 USPS may “issue and sell semipostals ... in order to advance such causes as the Postal Service
considers to be in the national public interest and appropriate” (39 U.S.C. 416(b)).

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stamps rises to 43 cents, the Forever stamp could still be used to mail a letter. The
customer would not need to purchase an additional 2 cents in postage.
Other than Stamps, What Kinds of Postage Indicia Exist?
USPS permits the use of several postage indicia.10 These include meter indicia,
mailing permit imprints, and customized postage. Each of these forms of postage is
described below.
Postage Meter Indicia. A postage meter or mailing machine is a device that is
used to print postage indicia directly onto mailpieces or pieces of adhesive tape that are
to be affixed to mailpieces.11 USPS does not produce postage meters; rather, private firms
manufacture meters to meet standards set in regulations issued by the Postal Service.12
To use a postage meter, a mailer must fill out an application with USPS and enter into a
rental agreement with a postage meter manufacturer. The mailer then prepays for postage,
and this prepayment is registered in his postage meter. When he wishes to mail an item,
the mailer places it in the meter, which weighs it and prints the required postage. The
customer may then drop the item into any mailbox within the 5-digit ZIP code in which
the meter is registered for delivery by USPS. Indicia made by postage meters may be
customized to include advertisements or messages. A customer may do this by designing
and purchasing an ad plate from the firm that provided his postage meter.
Mailing Permit Imprints. Mailing imprints are rectangular indicia printed at the
top right of envelopes.13 Mailing permit imprints may be made on envelopes “by printing
press, handstamp, lithography, mimeograph, address plate, or similar device.”14
Typically, mailing permit imprints are used by firms to send mass mailings of identical
mailpieces. Thus, for example, if a not-for-profit firm wanted to send letters to its 5,000
donors, it first would fill out an application with USPS to receive a mailing permit and
imprint. The firm then would hire another firm to print 5,000 envelopes with the imprint
on them. The not-for-profit company would then stuff these envelopes with letters and
deliver them to the post office from which it received its mailing permit. USPS would
receive the mail, and the firm would pay for the postage required on the spot.15 According
to USPS, mailing permit imprints may not be customized to include advertisements or
messages.
10 See USPS website at [http://www.usps.com/postagesolutions/].
11 Examples of meter indicia may be found on the USPS website at [http://pe.usps.com/text/
qsg300/images/graphics/Q024a.jpg].
12 U.S. Postal Service, Quick Service Guide 604c, Basic Standards for All Mailing Services:
Postage Meters and PC Postage Systems (Washington: USPS, 2006), at [http://pe.usps.gov/text/
qsg300/Q604c.htm].
13 Examples of mailing permit imprints may be found on the USPS website at
[http://pe.usps.com/text/qsg300/images/graphics/Q025b.jpg].
14 U.S. Postal Service, Quick Service Guide 604d, Basic Standards for All Mailing Services:
Permit Imprints (Washington: USPS, January 2006), at [http://pe.usps.com/text/qsg300/
Q604d.htm].
15 USPS also allows for prepayment of mailing permit imprint mail.

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Customized Postage Indicia. USPS began its first test of customized postage
indicia in August 2004. USPS’s authorization to experiment with customized postage
indicia was expanded by Section 1192 of the Violence Against Women and Department
of Justice Reauthorization Act of 2005 (P.L. 109-162; 119 Stat. 2960). The act amended
18 U.S.C. 475 to except indicia of “postage payment” from a more than century old law,
which prohibited the counterfeiting of government obligations or securities and the
placement of advertisements on said obligations or securities. USPS has entered into
agreements with a number of private firms, such as Stamps.com and Zazzle.com, that
permit these firms to create stamp-like indicia that carry advertisements and images
chosen by the purchaser (e.g., a photographic image of one’s pet cat) along with indicia
of postage paid.16 USPS requires firms that produce customized postage indicia to limit
the messages and images that may be placed on them. To cite just two of the restrictions:
customized postage indicia may not carry partisan or political content or messages; and
they may not depict profanity, nudity, or sexually explicit functions. Despite their
appearance, customized postage indicia are not stamps. Rather, they are adhesive stickers
that indicate postage paid. Customized postage indicia are sold at a premium by
authorized private companies. A sheet of 20 39-cent customized postage indicia may cost
$17.99 or more; a sheet of 20 39-cent USPS definitive stamps costs $7.80. The extra cost
of customized postage goes to the licensees, though, in some instances, a portion of the
extra cost may be used to support a particular charity or cause. (See below.)
Which Forms of Postage May Be Used
to Raise Revenues for Worthy Causes?
Semipostal stamps (see above) may be used to raise funds for causes. Customized
postage also has been used for this purpose. For example, the Humane Society of the
United States (HSUS) produced customized postage indicia through Zazzle.com that
generated proceeds for its animal protection programs.17
May Citizens, Groups, or Businesses Put Images,
Messages, or Advertisements on Stamps?
No. Stamps are produced by USPS alone and may not carry images, messages, or
advertisements promoting political causes, private businesses, etc. However, persons,
groups, and businesses may put images, messages, and advertisements on certain forms
of postage, such as customized postage and postage meter indicia.18
16 For examples of customized postage indicia, see the website of Zazzle.com at
[http://www.zazzle.com/pd/find/pt-172?sz=1].
17 For details, see the website of Zazzle.com at [http://www.zazzle.com/hsus].
18 For example, Stamps.com permits companies to create postage that advertises their brands,
products, etc. For details, see [http://photo.stamps.com/Store/business/].

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How Does One Request That the Postal Service Issue
a Stamp in Honor of a Person, Place, or Event?
To aid USPS in the development of new commemorative stamps, the Postmaster
General established the Citizens’ Stamp Advisory Committee (CSAC) in 1957. CSAC
operates under 39 U.S.C. 404(a) (4-5), which empowers USPS to provide stamps and
philatelic services. CSAC assesses proposals for new commemorative stamps against 12
criteria and advises the postmaster general, who has final authority to determine both
subject matter and design, on appropriate and desirable proposals.19 Anyone may propose
a new commemorative stamp. Proposals for new commemorative stamps should be sent
to the Citizens’ Stamp Advisory Committee, c/o Stamp Development, U.S. Postal
Service, 1735 North Lynn St., Suite 5013, Arlington, VA 22209-6432.
How Much Do Stamps and Postage Cost?
Perhaps, the easiest way to determine current postage rates is to visit the “Postage
Rates and Fees” webpage on the website of the Postal Regulatory Commission at
[http://www.prc.gov/rates/rates.htm]. Consumers also may call USPS at 1-800-275-8777.
How Are Postage Rates Set?
Currently, postage rates are set by the Postal Rate Commission with the agreement
of the Postal Service. USPS initiates a rate case by submitting a request to the
commission to raise postage prices that details the proposed increases and the
justifications for them. Any interested party, including a citizen or a business firm, may
submit testimony to the commission to support or criticize USPS’s proposal. The
commission then issues a recommended decision. USPS’s Board of Governors may
accept the commission’s decision or reject it in part or in toto.20
The recently enacted Postal Accountability and Enhancement Act (P.L. 109-435; 120
Stat. 3198) will change the process for setting postage rates by June 2008.21 The law
divides USPS products into two categories, market-dominant products22 and competitive
products.23 The postage rates for market-dominant products, such as first-class mail, will
be set by USPS in accordance with the requirements of the new regulatory system. The
19 For an enumeration of these criteria, see CRS Report RS20221, Commemorative Postage
Stamps: History, Selection Criteria, and Revenue Potential, by Kevin R. Kosar.
20 For further details on the current rate-setting process, see 39 U.S.C. 36.
21 P.L. 109-435, Sec. 201 requires that this new system must be in place within 18 months after
enactment of the law, which was signed on Dec. 20, 2006.
22 P.L. 109-435, Sec. 203 defines a market-dominant product as a product “in the sale of which
the Postal Service exercises sufficient market power that it can effectively set the price of such
product substantially above costs, raise prices significantly, decrease quality, or decrease output,
without risk of losing a significant level of business to other firms offering similar products. The
competitive category of products shall consist of all other products.”
23 Competitive products are those products and services that do not meet the definition of a
market-dominant product (P.L. 109-435, Sec. 203).

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new Postal Regulatory Commission will design this system,24 and the major feature of the
system for market-dominant products will be a price cap (P.L. 109-435, Section 201).
Each year, USPS will be able to raise the price of postage no more than the increase in the
Consumer Price Index for All Urban Consumers. The postage rates for competitive
products, such as overnight package delivery, will be set by USPS’s Board of Governors
in accordance with regulations promulgated by the Postal Regulatory Commission, which
will require prices to reflect “the direct and indirect postal costs attributable” to the
production and provision of these products (P.L. 109-435, Section 202).
Are Revenues from the Sales of Stamps Used to Support
the “War on Terror” or Other Government Operations?
No. An Online Journal article circulating on the Internet entitled “George W. Bush’s
War Stamp Tax,” by Wayne Madsen, asserts that the Bush Administration has increased
the price of stamps in order to “pay for its Iraq war adventure.”25 This is not an accurate
description of the way the Postal Service is funded or the reasons for the increases in
postage costs. Postal Service funds have not been diverted to the war on terrorism. By
law, the Postal Service is a self-funding enterprise that operates independently from the
executive branch of which it is a part. The Postal Service Fund, in the Treasury
Department, is essentially the USPS’s checking account. Postal revenues go into the fund
and are withdrawn to pay for postal expenses, such as compensation and benefits,
transportation and services, depreciation, and retirement obligations. Postage rate
increases are a consequence of rising USPS operational costs.
May the Families of Members of the
Armed Services Send Mail to Them for Free?
No. During the 109th and 110th Congresses, bills have been introduced to permit
certain persons to send letters and packages free of postage to servicemen and women in
combat zones. None of these bills have been enacted into law.26
May Any Active Duty Members of the
Armed Services Send Mail for Free?
Yes, a member of the armed services may do so, provided that he or she is on duty
in a designated combat area, the mail is personal correspondence, and the mail is
addressed to someone in the United States (39 U.S.C. 3401).27 The Department of
Defense (DOD) reimburses USPS for a portion of the delivery costs.
24 News on the development of the new regulatory system may be found at [http://www.prc.gov].
25 See [http://onlinejournal.com/artman/publish/article_779.shtml].
26 For further details on these proposals, see CRS Report RS22203, Free Mail for Troops
Overseas, by Kevin R. Kosar.
27 For further details on members of the armed services and postal services, see the website of the
Military Postal Service Agency at [http://hqdainet.army.mil/mpsa/].

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