The General Services Administration (GSA) announced on Friday that starting in fiscal year 2025, it will increase both the standard per diem lodging rate and the meals and incidental expenses rate for federal employees traveling in the continental U.S.
Starting October 1, 2024, the standard daily lodging allowance for most of the continental United States will increase by $3 to $110 per day, an increase estimated to be worth approximately $100 million to the hotel industry. The standard meals and incidental expenses allowance will increase by $9 to $68 per day, the first increase for this expense category in three years. The FY25 rates are currently available on the GSA website.
These increases are an important victory for SCRLA and AHLA, which have made fair per diem rates a perennial federal advocacy priority on behalf of our members. Government travel is a vital source of revenue for hotels, and it’s critically important that the federal government’s per diem rates take into account the economic realities hotels are facing, including the lingering effects of inflation and the nationwide workforce shortage. While the majority of the state did see an increase in their lodging per diem, two areas of our state, Charleston and Beaufort, saw declines in their current rate - meaning there is still work to be done. The SCRLA will continue to advocate on this issue on behalf of our members at the American Hotel & Lodging Association's annual Hotels on the Hill Conference in Washington, D.C., where SCRLA members and staff will sit down with our entire federal congressional delegation to discuss this and other critical issues impacting South Carolina's traditional lodging sector.
A huge thank you to AHLA, Congressman Joe Wilson (SCRLA/Rep. Wilson letter to GSA), Congressman Jim Clyburn, and their staff for their assistance in securing this win for South Carolina hoteliers and restaurateurs!
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