NTEU Supports Legislation to Increase Mileage Reimbursement Rate for Feds and Private Sector

Press Release September 12, 2005

Washington, D.C.—The introduction today of legislation to increase the mileage reimbursement rate for federal employees would provide “much needed relief” to those who use their personal vehicles during the course of their government jobs, said Colleen M. Kelley, President of the National Treasury Employees Union (NTEU).

A bill (S. 1678) introduced today by Sen. Charles E. Schumer (D-N.Y.) would raise the mileage reimbursement rate through the end of 2006 for all workers—public and private—to 60 cents per mile. The legislation would also increase to 60 cents per mile the reimbursement rate for charitable works, moving and medical expenses.

Additionally, the bill specifically requires the General Services Administration (GSA), which sets the reimbursement rate for federal employees, to set its rate at 60 cents until the end of 2006.

“Sen. Schumer correctly realizes the impact that higher fuel costs are having on federal employees and I applaud his explicit instructions to GSA in his legislation,” Kelley said. “Federal employees should not have to dip into their own pockets to cover the cost of doing their jobs and this legislation would alleviate this untenable situation.”

The bill’s introduction follows action taken on Friday by the Internal Revenue Service (IRS) to increase the reimbursement rate to 48.5 cents per mile from 40.5 cents until the end of this year. President Kelley on Friday noted the increase but said it “simply isn’t enough.”

“Federal employees who drive their own cars—and pay for their own gas—in order to do their jobs need real relief from the staggering fuel costs,” the NTEU leader said. NTEU will support this legislation, she said, along with companion legislation due to be introduced shortly in the House of Representatives by Rep. John Lewis (D-GA).

It was just a week ago that President Kelley requested an immediate increase in the mileage reimbursement rate set by the IRS, so that GSA was free to follow suit. Under law, GSA cannot set a higher rate than that allowed by the IRS. In a letter to IRS Commissioner Mark Everson, President Kelley said “I hope you will do whatever you can to see that all Americans who must depend on their cars to perform their jobs get some relief, including those who work for the federal government.”

NTEU is the largest independent federal union, representing 150,000 employees in 30 agencies and departments.

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