Federal hotel reimbursement rates will change Oct. 1

Federal employees traveling on official business in the continental United States will use a new hotel-reimbursement schedule beginning Oct. 1, 2026, when the General Services Administration raises the standard lodging allowance from $110 to $113 per night.

The FY 2027 schedule applies to travel performed from Oct. 1, 2026, through Sept. 30, 2027. The change affects federal travelers, agency travel managers and hotels that serve government customers, but it is not a general change to consumer hotel prices or a rate that every hotel must accept.

The national standard is only one part of the system

The $113 figure is the standard CONUS lodging rate. It is not the maximum reimbursement for every U.S. destination. GSA says 295 non-standard areas will continue to receive higher lodging allowances because local lodging costs are higher.

Locality-specific rates can also vary by month. Travelers should check the GSA lookup tool or the FY 2027 rate files using the work destination, applicable locality and travel dates before booking a room.

GSA says reimbursement is generally based on the location of the work activity, not the hotel where the traveler stays. If lodging is unavailable at the work location, an agency may authorize the rate for the place where lodging is obtained.

Meals and incidental expenses remain unchanged

The FY 2027 meals-and-incidental-expenses, or M&IE, tiers remain between $68 and $92. The standard M&IE rate remains $68.

For a traveler in a standard-rate locality, the listed lodging and standard M&IE amounts total $181 before any locality adjustment: $113 for lodging and $68 for meals and incidentals. The two allowances are separate. Federal rules do not allow travelers to transfer unused M&IE money to lodging or combine the rates to pay for a more expensive room.

Local changes will vary

GSA’s FY 2027 materials include both increases and decreases at the locality level. FedSmith reported that Albuquerque’s maximum lodging allowance rises from $144 to $208, while other localities received smaller increases or reductions. That example illustrates why federal travelers and travel managers should use the applicable locality and month rather than rely on the national standard.

GSA’s official materials explain the boundaries used for per diem localities, which may be defined by a key city, county or other specified area. The agency’s rates are based on lodging-market data, so changes in local hotel costs can affect a later fiscal year’s reimbursement schedule.

When a higher hotel bill may be reimbursed

A room above the applicable per diem rate is not automatically reimbursable. Under the Federal Travel Regulation, an agency may authorize actual-expense reimbursement when the applicable rate is insufficient, including when suitable rooms are unavailable within the limit.

That authorization can permit reimbursement of up to 300% of the applicable maximum per diem rate under FTR section 301-11.17. The approval is conditional, must follow agency procedures and should be obtained as required before travel or before the expense is incurred. It is not a blanket entitlement for every federal traveler.

Hotels also are not required to honor the federal per diem rate. A property’s GOV rate may be different from the federal rate, and GSA says travelers should not assume that a GOV rate is the same as the reimbursement limit. Lodging taxes in the continental United States generally are handled separately from the lodging per diem and remain subject to federal travel rules.

What travelers and hotels should do before Oct. 1

Federal travelers should verify the work location, applicable locality and travel month in the FY 2027 lookup before booking. They should retain lodging receipts and confirm whether agency approval is required for a room above the applicable ceiling.

Hotels and federal travel managers should review the locality files and update booking, contracting and reimbursement procedures before the new schedule takes effect. Alaska, Hawaii, U.S. territories and possessions use Department of Defense rates rather than the GSA CONUS schedule.

Sources

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