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Washington, D.C.—Heeding longstanding advice from the nation’s largest independent union of federal employees, the General Services Administration (GSA) today raised the federal mileage reimbursement rate to 50.5 cents per mile for government employees who use their personal vehicles on official business.

The increase, up from 48.5 cents per mile, matches the rate authorized by the Internal Revenue Service (IRS) for taxpayers who deduct mileage when using their vehicles for business purposes, which became effective on Jan. 1, 2008. GSA sets the rate for federal employees but its figure cannot exceed the maximum allowed by the IRS. Unfortunately, GSA’s regulation does not go into effect until March 19 for government employees.

National Treasury Employees Union (NTEU) President Colleen M. Kelley said the increase was long overdue. “It is not right to expect federal employees to continue to cover the cost of gas and maintenance out of their own pockets,” she said. “This increase will not fully cover rising costs, but it should help.”

In the wake of volatile gasoline prices in recent years, NTEU repeatedly has pressed the IRS for higher mileage deduction rates. Gas prices now are currently above $3 per gallon, with some market analysts predicting $4 per gallon gas prices this summer.

“With so many regions of the country now facing rapidly rising gas prices, timely, fair and adequate mileage reimbursement for all public servants is critical,” President Kelley said.

In a letter to GSA Administrator Lurita Doan last fall, President Kelley referenced the new IRS rate which had recently been announced and asked GSA to match it on Jan. 1. The union leader also referenced a two-month delay from GSA in setting the rate for 2007.

“I am glad the GSA has stopped dragging its feet on such a critically important issue and decided to give a little pocketbook relief to government employees across the country,” Kelley said.

NTEU is the largest independent federal union, representing 150,000 employees in 31 agencies and departments.