§ 301-7.12 - Reductions in maximum per diem rates when appropriate.

An agency may, in individual cases or situations, authorize a reduced per diem rate under certain circumstances, such as when lodgings and/or meals are obtained by the employee at a reduced cost or furnished to the employee at no cost or a nominal cost by the Government; or when for some other reason the per diem costs to be incurred by the employee can be determined in advance. In exercising its responsibilities outlined in § 301-7.2(b), the agency should consider any known factors that will cause the traveler's per diem expenses in a specific situation to be less than the applicable maximum rates prescribed under § 301-7.3. If it can be determined in advance of the travel that such factors are present, the agency should authorize a reduced rate that is commensurate with the known expense levels. Such reduced rate authorized on the travel authorization shall be the per diem rate payable on the travel voucher without receipts and/or itemization by the employee. When reduced rate situations involve partial days, per diem for such days may be three-fourths of the reduced rate, a special reduced rate prescribed for partial days, or an amount determined under the lodgings-plus system, as considered appropriate by the agency. Guidelines for reducing rates and situations where reduced rates may be appropriate include but are not limited to those provided in paragraphs (a) through (d) of this section.

(a) When lodgings/meals are furnished by the Government—(1) Lodgings furnished. Normally when all or part of the lodging is furnished at no cost or at a nominal cost to the employee by the Government, the lodgings-plus per diem system automatically reduces the maximum per diem rate to the M&IE rate (or fraction thereof). When lodging is furnished at no cost to the employee through use of an agency purchase order, the agency shall not authorize or approve a per diem allowance for other per diem expenses that will, when combined with the cost of lodging furnished, exceed the applicable maximum per diem rate prescribed under § 301-7.3.

(2) Meals furnished. When all or part of the meals are furnished at no cost or at a nominal cost to the employee by the Federal Government, the applicable maximum per diem rate or the M&IE rate, as appropriate, shall be reduced to a daily amount commensurate with the expenses expected to be incurred by the employee. If a reduced per diem rate was not authorized in advance of the travel and meals were furnished at no cost or at a nominal cost by the Federal Government, the appropriate deduction prescribed in paragraph (a)(2)(i) or (ii) of this section shall be made from the total per diem payable on the travel voucher. If there is a charge for the meal for which a deduction has been made under this paragraph, reimbursement shall be allowed for the amount paid, not to exceed the amount allocated for the meal in paragraph (a)(2)(i) or (ii) of this section. The total amount of the deductions made on partial days shall not cause the employee to receive less than the amount allocated for incidental expenses.

(i) CONUS locations. The applicable M&IE rate for CONUS locations shall be reduced by the dollar amount shown in the following table when meals are furnished to the employee without charge or at a nominal cost (see paragraph (a)(2) of this section) by the Federal Government.

M & IE Rates$30$34$38$42Breakfast $6 $7 $8 $9Lunch 6 7 8 9Dinner 16 18 20 22Incidentals 2 2 2 2

(ii) Outside CONUS locations. The M&IE rates for localities in both nonforeign and foreign areas shall be reduced by the applicable dollar amount shown in appendix B when meals are furnished to the employee without charge or at a nominal cost (see paragraph (a)(2) of this section) by the Federal Government.

(b) Extended stays. When travel assignments involve extended periods at temporary duty locations and travelers are able to secure lodging and/or meals at lower costs (e.g., weekly or monthly rentals), the per diem rate should be reduced accordingly. If the extended temporary duty is for training, see paragraph (d) of this section. (See also § 301-7.14 for allowable expenses in special situations.)

(c) Meetings and conventions. In the interest of uniform treatment of employees, whenever a meeting or conference is arranged which will involve the travel of attendees from other agencies or components of the same agency, and reduced cost lodging accommodations have been prearranged at the meeting or conference site, the agency or agencies sponsoring the meeting or conference shall recommend to the other participating agencies or components a per diem allowance that would be reasonable.

(d) Per diem for extended training assignments. (1) The Government Employees Training Act (5 U.S.C. 4101-4118) authorizes agencies to pay all or a part of the per diem expenses of an employee assigned to training at a temporary duty station. Implementing regulations prescribed by the Office of Personnel Management (OPM) in 5 CFR 410.603 provide specific guidelines for payment of per diem expenses for employees on extended training assignments of more than 30 calendar days at temporary duty locations.

(2) Generally the OPM guidelines require a reduced per diem of not more than 55 percent of the applicable maximum per diem rate prescribed in this regulation (see § 301-7.3). Per diem above these levels (not to exceed the maximum per diem rates) must be justified. Agencies shall refer to the OPM guidelines in 5 CFR 410.603 for specific criteria to determine the appropriate per diem. Guidelines also are published by OPM in the Federal Personnel Manual, chapter 410, section 6-3.