The United States General Services Administration has announced the new fiscal year 2023 per diem rates for government travel in the continental United States. Federal agencies use the per diem rates to reimburse their employees for subsistence expenses incurred while on official travel.
Federal per diem reimbursement rates consist of a maximum lodging allowance component and a meals and incidental expenses component. Most of the the continental U.S. (approximately 2,600 counties) is covered by the standard per diem rate.
For next year, the GSA increased the standard per diem rate and has set all nonstandard area rates at or above the FY2022 rates. The FY2023 continental U.S. per diem rate is $157: $98 for lodging (increased from $96) and $59 for meals (unchanged).
The American Hotel & Lodging Association worked with the GSA to develop a "flexible approach" for the rates. Beyond helping hoteliers set room prices that will attract government travelers, the federal per diem rates also often are used as a guide by other corporations and businesses in setting their own travel standards. "Without this novel action, hotels across the country faced depressed, pandemic-era rates for federal travelers," AHLA President and CEO Chip Rogers said in a statement. "Our team worked closely with GSA, the Biden administration and a bipartisan and bicameral group of legislators. AHLA thanks Sens. Jerry Moran (R-Kan.) and Tim Kaine (D-Va.) and Reps. Bill Posey (Fla.-8) and Charlie Crist (Fla.-13) for their federal legislation (S.2160, H.R. 2104) which would have ensured fair and equitable per diem rates for FY23."