NTEU Presses GSA to Increase Mileage Reimbursement Rate

Press Release January 29, 2008

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

The increase, from the current rate of 48.5 cents per mile, would match the rate authorized by the Internal Revenue Service (IRS)—which was effective Jan. 1—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 allowed by the IRS.

“Many federal employees use their personal vehicles for government work,” said National Treasury Employees Union (NTEU) President Colleen M. Kelley. “Even this modest increase will not fully cover their costs but it would help.”

In late November President Kelley sought assurances from GSA that the rate would be increased on Jan. 1. In a letter to GSA Administrator Lurita Doan, Kelley referenced the IRS rate which had recently been announced and asked GSA to match it. The union leader also referenced a delay from GSA in setting the rate for 2007.

“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 in her November letter to Administrator Doan.

“Here we are a year later in the same situation,” President Kelley said. “It is not fair and it is not right to expect federal employees to cover the cost of gas and maintenance from their own pockets. GSA must act immediately to match the IRS rate.”

Gas prices are currently hovering around $3 per gallon. NTEU has repeatedly pressed the IRS for a higher mileage deduction rates in recent years, particularly in the wake of volatile gasoline prices. Last summer, due to record-high gas prices, President Kelley called on the IRS to make a rare, mid-year upward adjustment in the mileage reimbursement rate for business travel.

“Despite NTEU’s best efforts, GSA continues to drag its feet on an issue of critical importance to government workers nationwide,” President Kelley said. “I urge GSA to act quickly.”

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

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