Federal employees who use their own cars when traveling on government business will be reimbursed 1.5 cents less per mile beginning this week, the General Services Administration announced.
Effective April 1, the reimbursement rate falls from 32.5 to 31 cents per mile. The rate applies when an employee uses a privately owned vehicle while on government travel.
The rate drop comes just seven months after GSA raised the reimbursement rate from 31 to 32.5 cents. GSA pushed up the rate on Sept. 8. But the IRS subsequently announced that the standard mileage rate business people can claim for tax deductions would drop to 31 cents per mile on Apr. 1. By law, the government's reimbursement rate cannot be higher than the IRS rate.
Federal employees who use their motorcycles on government travel will continue to be reimbursed at 26 cents per mile. The government will reimburse federal travelers who use a private airplane at 88 cents per mile.
GSA announced the reimbursement rate change in the March 31 Federal Register.
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