GSA Drops Plan to Change Per Diem Calculations But Freezes Rates

The U.S. General Services Administration has decided not to change the way it calculates per diem rates, a move that would have effectively cut the amount that federal employees are permitted to spend on lodging by about 30%. A coalition of travel industry associations, hotel chains and owners, destination marketing associations and others lobbied hard against the proposal, which they said would have cost the industry $885 million in revenue. Instead, the agency will freeze the reimbursement rates for lodging, meals and incidentals at current levels for 2013 to help meet a directive from the Office of Management Budget to cut travel budgets by 30%. The move will reduce government spending by an estimated $20 million. federaltimes.com