The short version
- From October 1, 2026, the standard federal lodging rate is $113 a night, up $3. Meals and incidentals stay at $68 standard, $68 to $92 by location.
- 295 cities and counties have their own higher lodging rates. Some moved a lot.
- The IRS business mileage rate rose from 72.5 to 76 cents per mile on July 1, 2026.
For federal agencies, and for the many universities, school districts and state and local offices that tie their own travel rules to federal numbers, October 1 is rate-change day. Here's what's new for fiscal year 2027.
Lodging: a small increase after a freeze
The General Services Administration kept per diem rates flat for FY 2026. For FY 2027, it raised the standard lodging rate for the continental U.S. by $3, from $110 to $113 per night. The new rates apply to travel on or after October 1, 2026, through September 30, 2027.
The standard rate covers most of the country. 295 non-standard areas, mostly larger cities and their surrounding counties, get their own higher lodging limits. Because GSA sets those using the prior year's hotel rates, markets where hotel prices climbed see bigger jumps. Albuquerque had the largest increase this year, up 44%.
Look up the exact rate for any destination with GSA's per diem lookup.
Meals and incidentals: no change
The M&IE tiers stay at $68 to $92 per day, with $68 as the standard rate. GSA last adjusted those tiers in FY 2025 and plans to review them again for FY 2028.
Mileage: a mid-year bump
The IRS set the 2026 business mileage rate at 72.5 cents per mile starting January 1. It then raised it to 76 cents per mile for driving on or after July 1, 2026, citing fuel costs. If your reimbursement forms still show 72.5 cents, they're out of date for the back half of the year.
A short checklist
- Update rate tables in your expense system, and test a trip that crosses September 30 into October 1. Each night should use the rate for that date.
- Check your own policy. Many state agencies, universities and school districts set their own limits that follow, cap or adjust the federal rates. Your policy is what governs your travelers.
- Look at your most-visited cities. If a conference city's lodging rate moved, next year's budget should too.
- International trips use a different set of rates, set by the U.S. Department of State.
Where a travel agency helps
Per diem limits only work if travelers can find rooms under them. We book inside your policy limits by default and flag it before a trip goes over, with a reason attached, so approvals aren't a surprise after the fact. That's a core part of travel program management and our work with education and public-sector clients.
Have a question about how this affects your travelers? Ask us, or learn more about our Athens corporate travel agency.