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Mileage Reimbursement Rate Increases for January

The General Services Administration (GSA) announced it is increasing the mileage reimbursement rate for federal employees to 58 cents from 54.5 cents per mile. The increase brings the federal rate to that recently set by the Internal Revenue Service (IRS) for private sector employees. 

The increase brings the federal rate to that recently set by the Internal Revenue Service (IRS) for private sector employees. When the IRS announced the hike, NTEU National President Tony Reardon immediately wrote to GSA asking them to consider matching the IRS hike, effective Jan. 1.

“I am sure you are aware that vehicle operating costs have created a great burden for federal employees who use their personal vehicle for government business,” Reardon wrote to GSA Administrator Emily Murphy.  “After years of pay freezes or inadequate pay raises, many federal employees are financially pressed.”  

GSA separately sets the rate for the federal workforce, but it cannot exceed the limit established by the IRS. Every year, NTEU keeps close track of this issue on behalf of the tens of thousands of federal employees who use their private vehicles in their work.