Mileage reimbursement rate going up

Good news for federal travelers: The mileage reimbursement rate for travel by car is going up.

GSA sets the reimbursement rate for federal employees. The rate cannot exceed the rate established by the IRS. In November, the IRS announced it would increase its standard mileage reimbursement rate by two cents, to 34.5 cents per mile, in 2001.

The General Services Administration has decided to mirror that decision, raising the federal rate to 34.5 cents as well. But the new rate is not yet in effect. According to Jim Harte, travel team leader at GSA, approval of the new rate is in the final stages. GSA notified the secretaries of Defense and Treasury of the change, and the final package is awaiting a signature from the GSA administrator's office. Once language changing the rate is signed, the new rate will be published in the Federal Register and become effective.

GSA and IRS increased the rates to compensate for increasing costs in gasoline prices nationwide.