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Lodging Allowance for Gov’t Employees to Rise Notably

Come October, the standard reimbursable rate for lodging will rise by nine percent, though the meal allowance will be unchanged.

The U.S. General Services Administration has released the fiscal year 2024 per-diem rates for government travel in the continental United States, with the standard reimbursable lodging rate rising from $98 to $107 for FY ’24, which begins on October 1. However, the rates for non-standard areas—which include most major metropolitan areas around the country—are significantly higher than the standard rate, and these will rise as well.

For example, government-employee lodging rates in Chicago for FY ’23 ranged from $134 per night in winter to $218 in spring and fall. In Denver, rates ranged from $162 in winter to $199 in other seasons. And in Boston, FY ’23 rates ranged from $189 in winter to $309 in fall. Nine-percent increases in those cities would result in daily lodging rates rising by anywhere between $12 and $27. It Is not yet clear, however, whether the same nine-percent increase for lodging will be applied to each major metropolitan area.

Typically, GSA calculates per diems based on the average daily rate from the trailing 12-month period, less five percent. But with average daily hotel rates having risen considerably over the past 12 months, the lodging rates for government employees traveling to mid-sized and large cities will likely see a sizable bump, even if it is not a full nine percent.

Interestingly, the food and beverage allowance across the country will not change; the standard rate is $59. In Chicago, Denver, Boston, and many other big cities, it is $79.

GSA's new per-diem rates "come after months of hard work AHLA put in to lobby the administration on behalf of hoteliers nationwide,” said AHLA President & CEO Chip Rogers in a statement. “These rates include large increases in many non-standard areas. This is a positive step for hoteliers across the country, as government travel supports billions in travel spending and many private-sector organizations also base travel reimbursements from federal per-diem rates.”

One other statement from Rogers that meeting planners should take note of: “We will continue to work with GSA and advocate for lodging- and meal-rate increases that reflect market conditions.”

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