A few days ago, the federal General Services Agency, i.e., GSA, announced the new federal lodging as a part of per diem rates for 2023. The agency accounts for federal lodging per diem rates for the next year for all cities in the United States.
In addition, these per diem rates for 2023 will be effective starting from October 1, 2022. Considering the current economic condition of the United States, setting the new per diem rates for 2023 was quite a challenge for the federal General Services Agency. We should also not neglect the effect of COVID-19 on the travel industry.
While many federal and private sector employees were waiting for a satisfactory increase, the announced rates led to disappointment for many people. Considering the rapidly increasing inflation rates, only a $2 increase in lodging is referred to as frustration.
The federal General Services Agency calculates these per diem rates by considering the average daily rate of the previous fiscal year. However, since the pandemic significantly affected the travel industry, there would be about a five-percent decrease, according to these calculations.
AHLA also took part in this decision-making process and intervened in the calculations to prevent any decrease. The pandemic-related recovery was on the agenda, and the per diem rates were increased at very low rates as a result.
For example, in Texas, the new rate per night for lodging is not $98. This rate was already $96 per diem in 2020. It is worth noting that these rates vary depending on the state and even metro areas.
This CONUS rate, which refers to the default federal per diem rate for each area, is not covered by a specific federal per diem rate increase of $2. Keep in mind that the per diem rate is designed for federal government travelers. However, many companies from the private sector also take these rates as a basis for travel payments.
Unfortunately, the CONUS rate is the only per diem rate that has changed for 2023. The federal daily per diem rate for incidental expenses and meals will remain the same in the coming year.
You can always visit the official General Services Agency website to learn the per diem rates for 2023, depending on your state.