Articles

GSA Freezes Federal Travel Reimburesement Rates

News Release

U.S. General Services Administration
August 14, 2012
Contact: Mafara Hobson, Mafara.Hobson@gsa.gov

GSA Freezes Federal Travel Reimbursement Rates
Per Diem Rates for Fiscal Year 2013 Remain at 2012 Levels to cut costs

WASHINGTON -- Today, the U.S. General Services Administration (GSA) announced it will set government-wide per diem travel reimbursement rates for fiscal year (FY) 2013 at current 2012 levels. The action will help federal agencies meet the Obama Administration's directives to reduce travel costs government-wide. GSA sets the federal government’s reimbursement rates for lodging, meals, and incidentals for federal employees’ official government travel. Freezing the federal travel reimbursement rates will save an estimated $20 million in avoided costs in FY 2013.
This action supports an Office of Management and Budget memorandum, directing federal agencies to decrease all travel spending in FY 2013 by 30 percent compared to FY 2010. In addition, as part of Acting Administrator Dan Tangherlini’s ongoing top-to-bottom review of GSA operations, freezing per diem rates is one of several measures the administrator has taken to ensure the agency is closely evaluating travel spending.
“GSA is undergoing a rigorous review process to find ways in which we can streamline agency operations and save money across the government,” said Acting Administrator Dan Tangherlini. ”By keeping per diem rates at current levels, we are supporting federal agencies in controlling costs and ensuring that taxpayer dollars are used wisely.” FY13 Per Diem Rates go into effect Oct 1. Current Per Diem rates are available on GSA’s Per Diem web page.

Travel Industry Blocks GSA Move to Arbitrarily Slash Per Diem Rates

Dear Travel Colleague:

Standing shoulder-to-shoulder in defending the value of government travel, our industry successfully avoided a potentially devastating policy change when the U.S. General Services Administration (GSA) announced it would not alter its method for calculating lodging per diems, which could have cost the industry $885 million in revenue and thousands of American jobs.

Thanks to the joint advocacy efforts of travel industry associations, local hotel owners, national lodging chains, destination marketing organizations and many others, we were able to defend against a policy proposal that would have cut federal lodging per diem rates by roughly 30 percent.  The GSA was considering this drastic change as part of a government-wide initiative to reduce federal conference and travel spending.  Instead, the GSA decided to freeze lodging per diem rates at current levels for the upcoming fiscal year. 

This decision was reached because so many industry leaders sent a clear message that travel is an essential tool for the government and critical to local economies.  Working with the American Hotel & Lodging Association and the U.S. Chamber of Commerce, among others, we successfully generated dozens of letters from leaders on Capitol Hill and met repeatedly on this issue with members of the Administration to support this issue.  State travel associations and destination marketing organizations from across the nation hosted roundtables with government officials to discuss the importance of federal travel.  In the end, our message was heard loud and clear.  

We should be thankful to the GSA, travel leaders in Congress and the Obama Administration for continuing to work collaboratively with our industry, and for their recognition of the importance of travel.  Given the negative media attention surrounding federal conferences, a contentious political environment and a shrinking federal budget, a freeze in the per diem rates is a sensible policy decision that minimizes economic impact on the travel industry and protects taxpayer dollars during these tight fiscal times.

There are still difficult challenges ahead.  Federal agencies face 30 percent cuts to their travel budgets and government conferences remain under intense scrutiny.  But the per diem debate provides a valuable lesson on what we can accomplish when we speak with one voice.  From streamlined visa policies, to improvements in aviation, to developing smart and responsible government travel practices, the unified voice of our industry is being heard as never before in Washington, D.C.

I will keep you informed of further developments.

Sincerely,

Roger J. Dow
President and CEO

US Travel Association