With the start of the new U.S. fiscal year, the General Services Administration’s per-diem Bulletin FTR 27-01 enters into force today, 1 October 2026. The bulletin lifts the standard lodging cap for continental U.S. (CONUS) travel from US $110 to US $113 and maintains meals-and-incidentals tiers at $68–$92. Two-hundred-ninety-five counties qualify for higher “non-standard area” lodging ceilings. Per-diem rates govern how federal agencies—and by extension many private-sector government contractors—reimburse employees for hotel and subsistence costs. Many companies peg internal travel policies to GSA ceilings to simplify budgeting and tax compliance, so today’s change will flow into corporate booking tools within days. The modest $3 lodging bump reflects hotel-rate inflation in mid-tier business markets such as Louisville, Sacramento and Jacksonville. Major metros like New York and San Francisco already sit well above the standard rate and see separate seasonal bands. GSA left meals allowances unchanged after restaurant price growth cooled to 2 percent year-on-year. Travel managers should refresh per-diem tables in expense platforms and audit any flat-rate “per-trip” allowances that reference the old $110 cap. Failure to update could lead to taxable overpayments or employee out-of-pocket costs. Organisations with travellers to Alaska, Hawaii and U.S. territories should note that Defense and State Department rates—updated separately—also reset today.
Source: GSA Per-Diem Bulletin FTR 27-01
