The United States General Services Administration is set to increase the fiscal year 2027 standard per diem rates for federal employees traveling in the continental United States.
Starting Oct. 1 and effective through Sept. 30, 2027, the standard daily lodging allowance for most of the continental U.S. will increase by $3 to $113 per day. Additionally, many individual markets saw upward adjustments. The standard meals and incidental expenses allowance will remain $68 per day.
Each year, the GSA sets per diem rates to reimburse federal employees’ lodging and meals expenses for official travel within the continental U.S., and operators use these rates to attract government travelers to their properties. The rates are calculated based on the average daily rate for lodging and meals from a trailing 12-month period, minus 5 percent. Earlier this week, a report from Hotels.com noted that government workers report the lowest average per diem, at less than $79.
“It’s been two years since rates were increased and this reflects the significant work AHLA has led behind the scenes to advocate for federal per diem rates that better align with market conditions and the economic realities hotels are facing,” Rosanna Maietta president & CEO of the American Hotel & Lodging Association, wrote in an email to members. “This progress, while not complete, is especially significant because many private sector businesses rely on federal per diem rates as benchmarks when setting their own travel reimbursement policies, extending the impact well beyond government travel.
“A strong economy requires a thriving hospitality sector,” Maietta continued in the email. “AHLA is proud to work with the GSA and members of Congress to achieve this rate increase and will continue to advocate for increases that accurately reflect market rates.”
In a statement, Maietta applauded the rate increases. “Fair, market-based federal per diem rates that reflect current operating costs are essential to sustaining hotels, supporting local jobs, and generating community investment. Government travel is a critical economic driver, making it imperative that per diem rates keep pace with increased costs. A strong economy requires a thriving hospitality sector and this increase will help achieve that goal.”