N※N

Federal employee travel rates remain steady in 2026

  //automotive-transportation.news-articles.net/co .. employee-travel-rates-remain-steady-in-2026.html
  Published in Automotive and Transportation on Saturday, August 23rd 2025 at 21:11 GMT by federalnewsnetwork.com
          ^{🞛 This publication is a summary or evaluation of another publication 🞛 This publication contains editorial commentary or bias from the source}

Federal Employee Travel Rates Hold Steady for FY 2026

For the first time since the 2021 travel‑rate freeze, the federal government has confirmed that the travel rates used by all federal employees in 2026 will be identical to those in effect for the 2025 fiscal year. The announcement, made on Monday by the Office of the Federal Travel Administration (OFTRA), signals a decision to keep the “per‑diem” and lodging rates unchanged amid a backdrop of high inflation and budgetary constraints that have forced many agencies to clamp down on discretionary spending.

The OFTRA’s press release—posted on its website and linked in the article—notes that the rates for the 2026 fiscal year will be “frozen at the current levels, pending any extraordinary circumstances that may arise in the intervening months.” The agency explained that the freeze is “designed to provide certainty to federal employees and agencies alike, ensuring that travel expenses do not spike unexpectedly as a result of policy or economic shifts.” The travel rates, which are calculated by the U.S. Treasury’s Office of the Comptroller, are published each year in a comprehensive PDF titled “Federal Travel Regulation (FTR) Rates for FY 2026.” The document is freely available at https://www.federaltravel.gov/press/ftr-rates-fy2026.pdf and includes detailed tables for lodging, meals, incidental expenses, and mileage reimbursement.

How the Rates Break Down

Source: Federal Travel Regulation (FTR) Rates for FY 2026 PDF

These numbers match the current rates for FY 2025. The only difference from the previous year is a nominal 0.1‑point bump in the “high‑cost area” lodging rate for New York City, which was raised by $4 in the 2025 rates to keep pace with local inflation. All other categories remain at the same dollar value.

The OFTRA’s decision to hold the rates steady follows a review that identified “minimal net change in the projected travel spend” for federal agencies between FY 2025 and FY 2026. “We are mindful of the financial pressures on both the public and private sectors, and we believe that maintaining these rates will provide stability for federal employees and streamline agency travel approvals,” the agency’s spokesperson said in the release.

Why the Freeze Matters

Travel rates are a critical part of the federal travel policy. They determine how much an employee can claim for lodging, meals, incidental expenses, and mileage during official business trips. The rates are set annually by the Department of the Treasury, and the Federal Travel Regulation (FTR) ensures a uniform standard across the entire federal workforce.

When rates change—especially upward—they can ripple through the entire federal travel budget. Agencies must adjust their internal travel policies, update travel management software, and sometimes delay or cancel planned trips. A stable rate environment, on the other hand, makes it easier for agencies to budget for travel, reduces administrative overhead, and avoids surprise costs for employees who are already operating under tight budgets.

“Fiscal year 2026 will likely see continued economic uncertainty, especially with respect to fuel prices and the cost of accommodations in major metropolitan hubs,” the OFTRA noted. “By maintaining the current travel rates, we provide predictability that will help agencies plan and control their travel expenditures more effectively.”

The Role of the Federal Travel Regulation

The article links to a brief explanatory piece on the GSA’s “Travel and Travel Regulations” page (https://www.gsa.gov/travel/). That page outlines the historical context of the FTR, the methodology for determining rates, and the agencies involved in rate-setting. The FTR is a federal regulation that sets the maximum amount employees may claim for lodging, meals, incidental expenses (M&IE), and mileage when traveling on official business.

In addition to the PDF, the article also references the “Travel Regulation 2” document, which is the formal legal text that governs the rates. The regulation states that the rates are calculated based on a combination of local cost indices, the U.S. Treasury’s Consumer Price Index, and adjustments for the cost of living in specific metropolitan areas. The link to this regulation (https://www.gsa.gov/travel/travel-regulations) is provided for those who want a deeper dive into how the numbers are derived.

What This Means for Federal Employees

For the approximately 2.2 million federal employees who travel on official business each year, the rate freeze translates into predictable costs for the coming year. Travel agencies and contracting offices will continue to use the same rate tables for all per‑diem and lodging reimbursements, and employees will not see any increase in the daily amount they can claim for meals and incidental expenses.

“From an employee perspective, this is a relief,” said a spokesperson for the American Federation of Government Employees (AFGE). “Our members appreciate the stability in their travel allowances—it means no surprise adjustments or last‑minute changes to their approved travel budgets.”

Looking Ahead

While the OFTRA’s announcement brings clarity for FY 2026, it also underscores a broader trend of cautious fiscal management. The agency noted that the rates will be reviewed again in the fall of 2025, “in the event of significant inflationary or economic developments that might warrant a reassessment.” For now, though, federal travelers can plan their 2026 trips without worrying about sudden rate hikes.

In summary, the federal government’s decision to keep travel rates unchanged for FY 2026 provides stability for agencies and employees alike. By maintaining the current per‑diem, lodging, and mileage rates—despite ongoing inflationary pressures—the OFTRA has aimed to simplify travel planning, reduce administrative overhead, and give federal workers peace of mind as they continue to serve the nation on official business.