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Washington, D.C. — The leader of the nation’s largest independent union of federal employees has called on the General Services Administration (GSA) to increase the mileage reimbursement rate to 50.5 cents per mile for federal workers who use their personal vehicles on official government business.
The increase, from the current rate of 48.5 cents per mile, would match the rate authorized by the Internal Revenue Service (IRS)—beginning on Jan. 1, 2008—for taxpayers who deduct mileage when using their vehicles for business purposes. GSA sets the rate for federal employees, but its figure cannot exceed the maximum rate allowed by the IRS.
In a letter to GSA Administrator Lurita A. Doan, National Treasury Employees Union (NTEU) President Colleen M. Kelley said the current reimbursement rate for federal workers is “often insufficient to cover the costs of driving a car on government business.” Thousands of federal employees regularly use their personal vehicle in the performance of their official duties.
Kelley called on GSA to act promptly, especially in view of rapidly fluctuating gas prices, so that federal employees can benefit from the new reimbursement rate as soon at the new IRS rate becomes effective on Jan. 1.
“The previous government rate was not raised until February 2007, despite an early commitment by GSA to make the rates effective at the beginning of the year,” President Kelley said.
With many regions of the country now facing gas prices that exceed $3 per gallon, timely, fair and adequate mileage reimbursement for all public servants is critical, she added.
NTEU has repeatedly pressed the IRS for a higher mileage deduction rates in recent years, particularly in the wake of volatile gasoline prices. This summer, due to record-high gas prices, Kelley called on the IRS to make a rare, mid-year upward adjustment in the mileage reimbursement rate for business travel.
NTEU is the largest independent federal union, representing 150,000 employees in 31 agencies and departments.