Federal Travel Per Diem Rates to Tick Up in FY 2027
Federal employees on official travel will see a slight increase in their per diem rates for fiscal year (FY) 2027 which starts October 1, 2026. This comes after the rates were not raised in FY 2026.
The General Services Administration (GSA) announced that the standard lodging per diem rate for locations in the continental U.S. without specific destination rates will rise by $3– from $110 to $113 per day.
Allowances for meals and incidental (M&I) expenses will remain between $68 and $92, with the standard M&I remaining $68.
The increase follows a decision to keep FY 2026 per diem rates at FY 2025 levels– the first time in five years there wasn’t an increase. At the time the administration cited “cost efficiency.”
GSA sets the rate for employees on official business throughout much of the Continental United States. However, there are 295 nonstandard areas that have higher allowances than standard rates. In some cases, federal employees can request reimbursement of up to 300 percent of the per diem rate based on actual expenses.
The Department of Defense sets rates for Alaska, Hawaii, and U.S. territories while the State Department establishes foreign rates.
Mileage Rate Adjustment
In July, GSA made a mid-year adjustment to mileage reimbursement rates for federal employees who use personal vehicles for work purposes.
That rate rose from 72.5 cents to 76 cents per mile and was applied to travel and relocation that occurred on or after July 1, 2026.
That followed the IRS decision to raise the standard business mileage reimbursement rate to 76 cents per mile due to rising fuel costs.
