SUBSISTENCE EXPENSES

• Citation: 41 CFR Part 301-11
• Sections: 28

§ 301-11.1 Eligibility for subsistence expense reimbursement.

Employees are eligible for reimbursement of per diem or actual subsistence expenses when:

(a) Performing official travel away from their official station or other areas defined by their agency;

(b) Incurring subsistence expenses while performing official travel; and

(c) In a travel status for more than 12 hours.

§ 301-11.2 Agency requirement to pay subsistence expenses.

The agency must pay subsistence expenses (either a per diem allowance or actual expense) unless:

(a) The travel is to a training event under the Government Employees Training Act (5 U.S.C. 4101-4121), and the employee agrees not to be paid subsistence expenses; or

(b) The travel is for a pre-employment interview, and the interviewing agency does not authorize subsistence expense payment.

§ 301-11.3 Subsistence expense reimbursement methods.

Subsistence expenses will be reimbursed primarily using the lodgings-plus per diem method. Subsistence expenses may also be reimbursed using the actual expense or the reduced per diem methods. Agencies may allow a different method to be used each calendar day. See appendix A to this part to find out where to access per diem rates for various types of Government travel.

§ 301-11.4 Determining the applicable per diem reimbursement rate.

Generally, the temporary duty (TDY) location determines the per diem reimbursement rate. However, if lodging is obtained outside the TDY location, the agency may authorize or approve the per diem rate for an alternate location if it is advantageous to the government. If arriving at the lodging facility after 12 midnight, an employee may claim the lodging cost for the preceding calendar day.

§ 301-11.5 Entitlement period for subsistence expenses.

The period for subsistence expense entitlement starts on the day the employee departs their residence, office, or other authorized point and ends on the day they return to their residence, office, or other authorized point.

§ 301-11.6 Selecting lodging and making lodging reservations.

(a) Employees must make their lodging reservations through their agency's travel management service.

(b) Employees should always stay in a “fire safe” facility. This is a facility that meets the fire safety requirements of the Hotel and Motel Fire Safety Act of 1990 (the Act), as amended ( see 5 U.S.C. 5707a).

(c) When selecting a commercial lodging facility, first consideration should be given to Government lodging agreement programs such as FedRooms®.

(d) Section 5707a of title 5, U.S.C., does not apply to the government of the District of Columbia.

§ 301-11.7 Lodging reimbursement based on lodging type.

(a) The agency will reimburse employees for different types of lodging:

(1) Conventional lodging (hotel/motel, including extended stay hotels; boarding house). Reimbursed at the single occupancy rate.

(2) Government quarters. Reimbursed for the fee or service charge paid for use of the quarters.

(3) Lodging with friends or relatives. May be reimbursed for additional costs incurred by the host to accommodate the employee if substantiated and deemed reasonable by the agency. Reimbursement does not include the cost of comparable conventional lodging or a flat “token” amount.

(4) Nonconventional lodging. Reimbursable when no conventional lodging is available in the area or when conventional lodging is in short supply, such as during special events. Includes home-sharing or short-term rental properties (excluding extended-stay hotels), college dormitories, rooms that may or may not be offered commercially in private homes, or other non-commercial accommodations.

(5) Recreational vehicle (trailer/camper). Reimbursable for expenses such as parking fees, fees for use of and connection/disconnection of utilities, electricity, fuel, water, sewage, bath or shower fees, and dumping fees.

(b) The agency will not reimburse:

(1) Personally-owned residence. No lodging expenses for staying at a personal residence or real estate expenses related to purchase or sale, except during an authorized relocation.

(2) Personally-owned recreational vehicle. No expenses associated with purchasing, selling, or paying for a recreational vehicle or camper at the temporary duty location.

§ 301-11.8 Computation of daily lodging rate for long-term lodging.

When obtaining lodging on a long-term basis ( e.g., weekly or monthly), the daily lodging rate is computed by dividing the total lodging cost by the number of days of occupancy for which the employee is entitled to subsistence expense reimbursement for lodging. The daily rate may not exceed the daily per diem rate for the TDY location.

§ 301-11.9 Allowable expenses for long-term lodging.

When renting lodging on a long-term basis ( e.g., weekly, monthly), the following expenses may be considered part of the lodging cost:

(a) Rental cost for a furnished dwelling. If renting an unfurnished dwelling, the rental cost of the dwelling and necessary furniture and appliances (such as stove, refrigerator, chairs, tables, bed, sofa, television, or vacuum cleaner);

(b) Costs of connecting, disconnecting, and using utilities;

(c) Reasonable maid fees and cleaning charges;

(d) Monthly telephone use fee (excluding installation and long-distance calls);

(e) Monthly internet/wifi use fee (excluding installation); and

(f) Other costs typically included in a hotel/motel room price in the area.

§ 301-11.10 Reimbursement for prepaid lodging expenses.

If a temporary duty assignment is curtailed, canceled, or interrupted for official purposes or reasons beyond the employee's control and acceptable to the agency, the employee may be reimbursed for pre-paid expenses that are not refundable, including a forfeited rental deposit, provided the employee sought to obtain a refund or took steps to minimize costs.

§ 301-11.11 Subsistence expense calculations when traveling across the international dateline (IDL).

When crossing the IDL, actual elapsed travel time will be used to compute an employee's subsistence entitlement rather than calendar days.

§ 301-11.12 Agency authorization of rest periods during travel.

(a) The agency may authorize a rest period not exceeding 24 hours at an intermediate point or destination when:

(1) The origin or destination is outside the continental United States (OCONUS);

(2) Scheduled flight time, including stopovers, exceeds 14 hours;

(3) Travel is by a direct or usually traveled route; and

(4) The agency has determined that travel by business class is not advantageous and travel is by coach class or premium economy class.

(b) When a rest stop is authorized, the applicable per diem rate is the rate for the rest stop location. The agency may authorize a rest period exceeding 24 hours when no scheduled transportation service departs within 24 hours of arrival at an intermediate point. To qualify, the employee must be scheduled to board the first available scheduled departure. The agency will determine a reasonable additional length of time for rest periods exceeding 24 hours.

§ 301-11.13 Reimbursement for subsistence expenses on non-workdays.

(a) Employees will generally be reimbursed for subsistence expenses during non-workdays (weekends, Federal holidays, or other scheduled non-workdays) when their travel status requires staying at the temporary duty location or traveling during these days. However, the agency should determine the most cost-effective approach, such as remaining in travel status or permitting return to the official station.

(b) For emergency travel due to incapacitating illness or injury, the rules in part 301-30 of this subchapter apply.

§ 301-11.14 Agency reimbursement for return home or to the official station during TDY.

The agency may authorize per diem or actual expense and round-trip transportation expenses for periodic return travel to the employee's home or official station under the following circumstances:

(a) The agency requires the employee to return to their official station to perform official business;

(b) The agency will realize substantial cost savings by the employee's return home; or

(c) Periodic return travel home is justified as part of an extended TDY assignment.

§ 301-11.15 Reimbursement for voluntary return during TDY assignment.

If an employee voluntarily returns home or to their official station on non-workdays during a TDY assignment, the maximum reimbursement for round-trip transportation and subsistence expenses is limited to what would have been allowed had the employee remained at the TDY location.

§ 301-11.16 Lodging tax reimbursement.

(a) For CONUS and non-foreign OCONUS locations, lodging taxes paid by the employee are reimbursable as a miscellaneous travel expense limited to the taxes on reimbursable lodging costs.

(b) For foreign areas, separate claims for lodging taxes are not allowed because lodging taxes have not been removed from foreign per diem rates established by the Department of State.

§ 301-11.17 Options for when the per diem rate is insufficient.

(a) Employees may request reimbursement of their actual expenses up to 300 percent of the per diem rate. There is no authority to exceed this ceiling. However, subject to agency policy, a lesser amount may be authorized.

(b) Agencies may authorize the per diem rate for an alternative location where lodging is obtained if it is advantageous to the Government.

(c) Approval for reimbursement above the per diem amount or at an alternative location is typically provided in advance and at the agency's discretion.

Note 1 to § 301-11.17:

Refer to § 301-70.201 for when an agency can issue a blanket actual expense authorization exceeding the per diem rate.

§ 301-11.18 Reimbursement for advance room deposit.

The agency may reimburse an advance room deposit required by a lodging facility to secure a room reservation before scheduled official travel. If the employee fails to perform the scheduled travel for reasons unacceptable to the agency and forfeits the deposit, the employee is indebted to the Government and must repay the amount as prescribed by the agency.

§ 301-11.19 Overnight lodging reimbursement.

Employees are reimbursed for actual and necessary expenses, not to exceed the applicable lodging per diem rate.

§ 301-11.20 Meals and incidental expenses (M&IE) reimbursement amounts.

(a) Except as provided in paragraph (b) of this section, when travel is more than 12 but less than 24 hours, employees receive a per diem allowance of 75 percent of the applicable M&IE rate for each calendar day they are in a travel status. If their travel is 24 hours or more, on the first day of departure and last day of travel, they receive 75 percent of the applicable M&IE rate. Full days of travel are reimbursed at 100 percent of the applicable M&IE rate.

(b) For travel by ship, whether commercial or Government, the agency will determine an appropriate rate within the applicable M&IE rate.

§ 301-11.21 Allowable M&IE reimbursement when meals are provided.

(a) Except as provided in paragraph (c) or (d) of this section, when M&IE per diem is authorized and meals are provided, either by the Government or included in the registration fee, including meals furnished under the authority of chapter 304 of this subtitle, employees must adjust the amount reimbursed by deducting the appropriate amount shown at https://www.gsa.gov/mie.

(b) For meals provided on the day of departure and the last day of travel, employees must deduct the entire allocated meal cost from the decreased M&IE rate. The total amount of meal deductions made will not cause employees to receive less than the amount allowed for incidental expenses.

(c) Employees do not need to deduct meals provided by a common carrier or a complimentary meal provided by a hotel/motel.

(d) Agencies may allow employees to claim the full M&IE amount if the employee was unable to take part in a Government-furnished meal due to the conduct of official business or:

(1) Was unable to consume the furnished meal(s) because of medical requirements or religious beliefs and purchased substitute meals instead; and

(2) If the employee had advance knowledge of the meals to be furnished:

(i) Requested specific approval to claim the full M&IE allowance prior to travel; and

(ii) Made a reasonable effort to make alternative meal arrangements but was unable to do so.

§ 301-11.22 Circumstances for prescribing a reduced per diem rate.

An agency may prescribe a reduced per diem rate lower than the prescribed per diem rate under the following circumstances:

(a) When the agency can determine in advance that lodging and/or meal costs will be lower than the per diem rate, such as when two employees share a room or kitchen facilities are available, reducing the need for buying prepared meals; and

(b) The lowest authorized rate must be stated in the travel authorization before travel or the traveler must be given sufficient notice once travel has begun to adjust spending ( i.e., finding and occupying alternative lodging).

§ 301-11.23 Itemization requirements for actual expense reimbursement.

Employees must itemize all expenses, including meals (with each meal itemized separately), for which they will be reimbursed under the actual expense method. Receipts are required for:

(a) Lodging, regardless of amount; and

(b) Any individual meal exceeding $75 in cost.

Appendix A Appendix A to Part 301-11—Prescribed Per Diem Rates

(a) For the CONUS per diem rates, see applicable FTR Per Diem Rate Bulletins, issued periodically and available at https://www.gsa.gov/perdiem;

(b) For non-foreign areas, see applicable Per Diem Rate Bulletins issued by the Department of Defense and published periodically in the Federal Register or at https://www.travel.dod.mil/Travel-Transportation-Rates/Per-Diem/; and

(c) For foreign area per diem rates, see per diem rate supplement to section 925, Department of State Standardized Regulations (Government Civilians-Foreign Areas) and available at https://aoprals.state.gov/web920/per_diem.asp.

§ 301-11.601 Duty to recognize a taxable extended TDY assignment.

A taxable extended TDY assignment is a TDY assignment that continues long enough that, under the Internal Revenue Code (IRC), the employee is no longer considered temporarily away from home during any period of employment exceeding one year. The status change becomes effective on the date when either the employee or the agency recognizes the assignment will exceed one year. As soon as either the employee or agency recognizes the assignment will exceed one year-

(a) The recognizing party must notify the other; and

(b) The agency must immediately change the employee's status.

§ 301-11.602 Tax consequences of extended TDY.

(a) For a taxable extended TDY assignment, all travel expense allowances, reimbursements, and direct Government payments made on the employee's behalf in connection with the assignment become taxable income, starting from the date the assignment is recognized as exceeding one year. The agency will reimburse the employee for substantially all income taxes incurred as a result of their taxable extended TDY assignment, through two components:

(1) Withholding Tax Allowance (WTA); and

(2) Extended TDY Tax Reimbursement Allowance (ETTRA).

(b) The WTA and ETTRA cover only TDY benefits described in this subchapter. On an extended TDY assignment, the employee is not eligible for relocation benefits they would have received on a permanent relocation.

§ 301-11.603 Procedures for WTA and ETTRA calculation and reimbursement.

(a) If the agency knows from the beginning that the TDY assignment qualifies as taxable extended TDY, the agency will:

(1) Withhold a WTA;

(2) Pay the WTA as withholding tax to the Internal Revenue Service (IRS) until the assignment ends; and

(3) Increase (or “gross-up”) the WTA amount to reimburse the employee for additional taxes on the WTA.

(b) If the agency realizes during the TDY assignment that taxes will be incurred, the agency will:

(1) Compute the WTA for all taxable benefits received since recognizing the assignment is no longer “temporarily away from home”;

(2) Pay the computed amount to the IRS; and

(3) Begin paying WTA to the IRS until the extended TDY assignment ends.

(c) For the ETTRA, the agency will use the same one-year or two-year process chosen for the relocation income tax allowance (RITA). Additional information on WTA and RITA processes is available in part 302-17 of this subtitle.

(d) If the agency offers a choice, the WTA is optional for the employee.

§ 301-11.604 When to file the required tax information for extended TDY.

Employees should provide the information their agency requires to make the ETTRA calculation. This will include tax information for any Federal and State tax returns filed for the year that the employee was on a taxable extended TDY assignment. Employees should submit this information at the beginning of the extended TDY assignment, or as soon as the employee or agency realizes the assignment will incur taxes.