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[Federal Register Volume 90, Number 9 (Wednesday, January 15, 2025)]
[Rules and Regulations]
[Pages 3706-3710]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-00497]

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GENERAL SERVICES ADMINISTRATION

41 CFR Part 302-16

[FTR Case 2022-04 Docket No. GSA-FTR-2023-0017, Sequence No. 2]
RIN 3090-AK65

Federal Travel Regulation (FTR); Relocation Allowances--
Miscellaneous Expenses Allowance

AGENCY: Office of Government-wide Policy (OGP), General Services 
Administration (GSA).

ACTION: Final rule.

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SUMMARY: The United States (U.S.) General Services Administration (GSA) 
is issuing a final rule amending the Federal Travel Regulation (FTR) to 
remove the relocation miscellaneous expenses allowance (MEA) lump sum 
amounts from the FTR. These lump sum amounts will be published in FTR 
Bulletins on an intermittent basis, much like what is done for per diem 
and mileage rates. The relocation MEA actual expense (as opposed to 
lump sum) amounts are unchanged and will remain in the FTR. This final 
rule also updates the types of expenses that may or may not be 
reimbursed by relocation MEA when employees itemize under actual 
expense. Additionally, this final rule updates and clarifies other 
relocation MEA regulatory sections and rearranges them into a more 
sequential order.

DATES: Effective January 15, 2025.

FOR FURTHER INFORMATION CONTACT: For clarification of content, contact 
Mr. Rodney (Rick) Miller, Program Analyst, Office of Government-wide 
Policy (OGP), at 202-501-3822 or [email protected]. For information 
pertaining to status or publication schedules, contact the Regulatory 
Secretariat Division at 202-501-4755 or [email protected]. Please cite 
FTR Case 2022-04.

SUPPLEMENTARY INFORMATION:

I. Background

    GSA published a proposed rule at 89 FR 4268 on January 23, 2024, 
which proposed FTR changes to relocation MEA. This rule finalizes those 
proposed changes as summarized above, and as set forth in greater 
detail below.
    Pursuant to 5 United States Code (U.S.C.) 5738, the Administrator 
of General Services is authorized to prescribe regulations necessary to 
implement laws regarding Federal employees when assigned a temporary 
change of station (TCS) or when otherwise transferred in the interest 
of the Government. The overall implementing authority is the FTR, 
codified in title 41 of the Code of Federal Regulations, chapters 300 
through 304.
    GSA's OGP continually reviews and adjusts policies and regulations 
under its purview to address Government relocation needs and to 
incorporate best practices, where appropriate, as a part of its ongoing 
mission to provide policies for travel by Federal civilian employees 
and others authorized to travel at Government expense.
    Pursuant to 5 U.S.C. 5724a(f) and 5737(a)(6), an employee 
transferred in the interest of the Government from one official station 
to another, assigned to a TCS location, or who has completed a TCS 
assignment and returned to their

[[Page 3707]]

previous official station is authorized a relocation MEA.
    The purpose of the relocation MEA is to defray some of the costs 
incurred due to relocating. The allowance is related to expenses that 
are common to living quarters, such as fees for disconnecting and 
connecting appliances; cutting and fitting rugs, draperies, and 
curtains moved from one residence to another; utility fees or deposits 
that are not offset by eventual refunds; forfeiture of medical, dental, 
and other non-transferrable contracts; and the cost of changing 
automobile registration(s) and driver's licenses.
    The FTR provides that a relocation MEA may be paid using one of two 
methods: lump sum or actual expense. Under the lump sum method, the 
agency pays a lump sum amount without requiring employee documentation 
of expenses. Under the current regulatory language, the lump sum 
amounts are ``either $650 or the equivalent of one week's basic gross 
pay, whichever is the lesser amount'' for an employee without immediate 
family members relocating with them, and ``$1300 or the equivalent of 
two weeks' basic gross pay, whichever is the lesser amount'' for an 
employee with immediate family members relocating with them.
    Under the actual expense method, the agency may authorize the 
employee to claim actual costs depending on the type of expenses 
incurred, in an amount in excess of the prescribed lump sum amount. The 
employee justifies any actual expenses by itemizing with supporting 
documentation. Reimbursement is limited to one or two weeks' basic 
gross pay depending on whether or not the employee has immediate family 
relocating with them, not to exceed the maximum rate payable for a 
position at GS-13, Step 10, of the General Schedule (base) (see 5 
U.S.C. 5332).
    This final rule amends the FTR by removing the relocation MEA lump 
sum amounts from the FTR and directing readers to an FTR bulletin with 
the relocation MEA lump sum amounts. GSA will publish the initial FTR 
bulletin with the relocation MEA lump sum amounts concurrent with the 
final rule's effective date. Agencies are advised that the relocation 
MEA lump sum amounts are expected to increase since they were last 
updated in 2011. Moving forward, GSA will publish FTR bulletins to 
update the relocation MEA lump sum amounts, as needed, based on changes 
to the Consumer Price Index (CPI). The final rule also clarifies in the 
regulatory text that ``basic gross pay'', as referenced in FTR part 
302-16, does not include ``locality pay.'' See 5 U.S.C. 5302 and 5304.
    This final rule also updates and clarifies the relocation MEA 
sections in the FTR and rearranges them into a more sequential order, 
to include replacing the table at FTR Sec.  302-16.2 with an updated 
list of examples for which the relocation MEA may be authorized, and 
updating the list of examples for which the relocation MEA may not be 
authorized. It also removes the relocation MEA employee eligibility 
table at FTR Sec.  302-16.3 and reformats it as an employee eligibility 
listing.

II. Discussion of the Final Rule

A. Summary of Significant Changes

    GSA has not made any significant changes to the regulatory language 
from the proposed to final rule.

B. Analysis of Public Comments

    GSA received one comment to the proposed rule suggesting that the 
relocation MEA lump sum match the amounts listed in the Department of 
State Standardized Regulations (DSSR) and urged that the relocation MEA 
lump sum amounts remain in the FTR instead of being published in a 
bulletin due to intra-agency distribution concerns. In response, GSA 
notes that it will determine the lump sum amounts based on the Consumer 
Price Index (CPI). While GSA expects its relocation MEA lump sum 
amounts to be similar to the DSSR's, the CPI fluctuates. Accordingly, 
the amounts to be determined by GSA in the present day may not exactly 
match the DSSR amounts since those were last updated in 2019. In 
response to the commenter's distribution concerns, publication of the 
relocation MEA lump sum in an FTR Bulletin affords GSA the flexibility 
to update the relocation MEA lump sum as needed to more fairly 
compensate travelers in line with the CPI. If GSA were to continue 
publishing the amounts in the FTR, such numbers can only be updated via 
a regulatory amendment, by which time, it may not accurately reflect 
the current CPI. Also, a bulletin takes less time and administrative 
effort to publish than a rule. Finally, note 1 to Sec.  302-16.6 
includes a direct link to GSA's FTR Bulletins for ease of distribution, 
in addition to the fact that notices of FTR Bulletins are published in 
the Federal Register and include a link to the Bulletin. GSA's OGP also 
emails all Federal agencies' travel and relocation operations and 
policy program managers to inform them of all FTR rules and bulletins 
when they are published, and recommends that such information be shared 
with relevant offices within their agency. GSA's OGP also briefs FTR 
changes to agency Senior Travel Official Council (STOC) members at 
regular intervals. Therefore, GSA will not change the final rule based 
on this comment.

C. Expected Cost Impact to the Public

    This rule does not result in cost impacts to the public. However, 
the changes may result in a slight increase in cost to the Federal 
Government as the relocation MEA lump sum amounts are expected to 
increase. Specifically, GSA will publish an FTR bulletin containing the 
relocation MEA lump sum amounts for an employee relocating without 
immediate family members and for an employee relocating with immediate 
family members. As detailed in the proposed rule, GSA expects the 
average relocation MEA lump sum amount across Federal agencies to 
increase to $1,125, for an estimated total increase of $312,973 per 
year agencywide (for those agencies subject to the FTR).\1\
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    \1\ GSA used data from the GSA's Business Travel and Relocation 
Dashboard for each agency to determine what was the average cost per 
MEA from FY18-FY22, and what the additional cost would be given the 
MEA increase of $650 to $750 for single employees and $1,300 to 
$1,500 for employees with families. GSA calculated the difference 
between the average MEA cost against $1,125 IF the average MEA cost 
was less than $1,125. This is because if the MEA cost is greater 
than the new MEA amount, then the employee would be more likely to 
do actual expense and there wouldn't be an additional cost to the 
MEA increase because the employee would be more likely to do actual 
expense rather than the old MEA amount as well. As a result, only 4 
agencies had an average MEA cost lower than the average of the new 
MEAs. GSA multiplied the difference for those 4 agencies against the 
number of MEAs for those 4 agencies and summed it up to $312K.
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III. Executive Orders 12866, 13563, and 14904

    Executive Order (E.O.) 12866 (Regulatory Planning and Review) 
directs agencies to assess all costs and benefits of available 
regulatory alternatives and, if regulation is necessary, to select 
regulatory approaches that maximize net benefits (including potential 
economic, environmental, public health and safety effects, distributive 
impacts, and equity). E.O. 13563 (Improving Regulation and Regulatory 
Review) emphasizes the importance of quantifying both costs and 
benefits, of reducing costs, of harmonizing rules, and of promoting 
flexibility. E.O. 14094 (Modernizing Regulatory Review) amends section 
3(f) of E.O. 12866 and supplements and reaffirms the principles, 
structures, and definitions governing contemporary regulatory review 
established in E.O. 12866 and E.O. 13563. The Office of Management

[[Page 3708]]

and Budget's Office of Information and Regulatory Affairs (OIRA) 
determined that the proposed rule was a significant regulatory action; 
however, after further discussion between GSA and OIRA, OIRA has 
determined that this final rule is not a significant regulatory action, 
and therefore, it is not subject to review under section 6(b) of E.O. 
12866.

IV. Congressional Review Act

    OIRA has determined that this rule is not a ``major rule'' under 5 
U.S.C. 804(2). Title II, Subtitle E of the Small Business Regulatory 
Enforcement Fairness Act of 1996 (codified at 5 U.S.C. 801-808), also 
known as the Congressional Review Act or CRA, generally provides that 
before a rule may take effect, unless excepted, the agency promulgating 
the rule must submit a rule report, which includes a copy of the rule, 
to each House of the Congress and to the Comptroller General of the 
United States. This rule is excepted from CRA reporting requirements 
prescribed under 5 U.S.C. 801 as it relates to agency management or 
personnel under 5 U.S.C. 804(3)(B).

V. Regulatory Flexibility Act

    This final rule will not have a significant economic impact on a 
substantial number of small entities within the meaning of the 
Regulatory Flexibility Act, 5 U.S.C. 601, et seq. This final rule is 
also exempt from the Administrative Procedure Act pursuant to 5 U.S.C. 
553(a)(2) because it applies to agency management or personnel. 
Therefore, an Initial Regulatory Flexibility Analysis was not 
performed.

VI. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the changes to 
the FTR do not impose recordkeeping or information collection 
requirements, or the collection of information from offerors, 
contractors, or members of the public that require the approval of the 
Office of Management and Budget (OMB) under 44 U.S.C. 3501, et seq.

List of Subjects in 41 CFR Part 302-16

    Government employees, Relocation, Travel and transportation 
expenses.

Robin Carnahan,
Administrator of General Services.

    For reasons set forth in the preamble, GSA revises 41 CFR part 302-
16 to read as follows:

PART 302-16--ALLOWANCE FOR MISCELLANEOUS EXPENSES

Sec.
302-16.0 In general.
Subpart A--General Rules
302-16.1 What is the purpose of the miscellaneous expenses allowance 
(MEA)?
302-16.2 Who is and who is not eligible for a MEA?
302-16.3 Must my agency authorize payment of a MEA?
302-16.4 How will I receive the MEA?
302-16.5 May I receive an advance of funds for MEA?
302-16.6 What amount may my agency reimburse me for miscellaneous 
expenses?
302-16.7 May I claim an amount in excess of that prescribed in this 
part?
302-16.8 What are examples of types of costs covered by the MEA?
302-16.9 What are examples of types of costs not covered by the MEA?
302-16.10 What standard of care must I use in incurring 
miscellaneous expenses?
Subpart B--Agency Responsibilities
302-16.100 What governing policies must we establish for MEA?
302-16.101 How should we administer the authorization and payment of 
miscellaneous expenses?
302-16.102 Are there any restrictions to the types of costs we may 
cover?

    Authority: 5 U.S.C. 5738; 20 U.S.C. 905(a); E.O. 11609, as 
amended, 3 CFR, 1971-1975 Comp., p. 586.

Sec.  302-16.0  In general.

    (a) Use of pronouns ``I'', ``you'', and their variants throughout 
subpart A of this part refers to the employee, unless otherwise noted.
    (b) Use of pronouns ``we'', ``you'', and their variants throughout 
subpart B of this part refers to the agency.

Subpart A--General Rules

Sec.  302-16.1  What is the purpose of the miscellaneous expenses 
allowance (MEA)?

    The miscellaneous expenses allowance (MEA) is intended to help 
defray various costs incurred due to relocation, assignment to a 
temporary official station (TCS), and return to the previous official 
station upon completion of a TCS assignment.

Sec.  302-16.2  Who is and who is not eligible for a MEA?

    (a) You are eligible for a MEA if:
    (1) Your agency authorized or approved a transfer or a TCS;
    (2) You discontinued and established a residence in connection with 
your transfer or TCS;
    (3) You meet the applicable eligibility conditions in part 302-1 of 
this chapter; and
    (4) You signed a required service agreement in part 302-2 of this 
chapter, if transferred.
    (b) You are not eligible for a MEA if you are:
    (1) A new appointee;
    (2) A Senior Executive Service (SES) employee authorized ``last 
move home'' benefits upon separation from Government service;
    (3) Assigned under the Government Employees Training Act (5 U.S.C. 
4109);
    (4) Returning from an Outside the Continental United States 
(OCONUS) official station to place of actual residence for separation 
from Government service; or
    (5) Returning from an OCONUS official station to a new CONUS 
official station if relocation expenses have not been authorized to the 
new CONUS official station.

Sec.  302-16.3  Must my agency authorize payment of a MEA?

    Yes, if you meet the applicable eligibility conditions in Sec.  
302-16.2, your agency must authorize payment of a MEA.

Sec.  302-16.4  How will I receive the MEA?

    You will be reimbursed your MEA in accordance with your agency's 
internal relocation policy.

Sec.  302-16.5  May I receive an advance of funds for MEA?

    No, your agency may not authorize an advance of funds for MEA. MEA 
may be paid after you have transferred to the new official station, 
upon assignment to your TCS, or upon completion of your TCS and return 
to your previous official station, as applicable.

Sec.  302-16.6  What amount may my agency reimburse me for 
miscellaneous expenses?

    The following amounts will be paid for miscellaneous expenses 
without support or documentation of expenses:
    (a) Either a lump sum amount set in a Federal Travel Regulation 
(FTR) bulletin or the equivalent of one week's basic gross pay, 
whichever is the lesser amount, if you have no immediate family 
relocating with you; or
    (b) Either a lump sum amount set in an FTR bulletin or the 
equivalent of two weeks' basic gross pay, whichever is the lesser 
amount, if you have immediate family relocating with you.

    Note 1 to Sec.  302-16.6: GSA publishes the lump sum amounts in 
an FTR bulletin on an intermittent basis at https://gsa.gov/ftrbulletins.

Sec.  302-16.7  May I claim an amount in excess of that prescribed in 
this part?

    Yes, you may claim an amount in excess of that prescribed in Sec.  
302-16.6 if authorized by your agency; and
    (a) Supported by acceptable statements of fact, paid bills or other 
acceptable evidence (documentation) justifying the amounts claimed; and

[[Page 3709]]

    (b) The aggregate amount does not exceed your basic gross pay (at 
the time you reported for duty, at your new official station) for:
    (1) One week if you are relocating without immediate family; or
    (2) Two weeks if you are relocating with immediate family.
    (c) The amount authorized cannot exceed the maximum rate of grade 
GS-13, Step 10 General Schedule (base) salary (excluding locality pay) 
(see 5 U.S.C. 5332) at the time you reported for duty at your new 
official station.

Sec.  302-16.8  What are examples of types of costs covered by the MEA?

    Miscellaneous expenses are costs associated with relocating that 
are not covered by other relocation benefits detailed in this chapter. 
Expenses allowable include but are not limited to the following, and 
similar, items:
    (a) Fees for disconnecting and connecting utilities (such as gas, 
water, electricity), appliances, equipment (such as a security system 
or electric vehicle charging station), or conversion of appliances for 
operation on available utilities;
    (b) Fees for cutting and fitting rugs, draperies, and curtains when 
they are moved from one residence to another;
    (c) Deposits or fees for utilities not offset by eventual refunds;
    (d) Losses that cannot be recovered by transfer or refund and are 
incurred due to early termination of a contract (e.g., medical, dental, 
private institutional care for immediate family members with 
disabilities, nonrefundable education enrollment fee, real estate 
expenses connected with the cancellation of a contract when a new 
transfer prevented the employee from completing a purchase of a 
residence);
    (e) Automobile registration, driver's license, and use taxes 
imposed when initially bringing privately-owned vehicles (POVs) into 
certain jurisdictions;
    (f) Reinstalling or removing automobile parts upon vehicle reentry 
into the United States or entry into a foreign country, when removal or 
installation of those automobile parts was required by host country 
law;
    (g) Post office box rental fee when rented to provide a constant 
mailing address between the time an employee departs the old residence 
and occupies a residence at the new official station;
    (h) Rental agent fees customarily charged for securing housing in 
foreign countries;
    (i) Reassembly, set up, and tuning of a piano moved for relocation;
    (j) Pet care (for cats and dogs only), child care, or adult care 
for dependent parents or other adult dependents incapable of self-care 
at home while the employee or spouse are away on a househunting trip, 
or are packing or unpacking;
    (k) Rental car fees while awaiting a delayed POV shipment to or 
from OCONUS if the transportation service provider (TSP) has not 
arranged for the employee's use of a rental car at TSP expense. 
Reimbursement may be authorized starting after the shipping company 
designated delivery date, shall not exceed 10 days, and does not 
include the days after the POV is delivered or a new POV is purchased 
at location. The rental car for the employee and immediate family 
members must be the same or comparable size or model as the POV the 
employee shipped;
    (l) Transportation and quarantine of pets (cats and dogs only). 
Costs normally associated with the transportation, quarantine fees, and 
handling of dogs and cats. This includes pet-related costs due to air 
carrier rules or imposed by the law of the jurisdiction of the 
employee's new residence as an integral part of the process of 
admissions and licensing;
    (m) Professional relicensing fees required by the new official 
station that are directly related to the employee's occupation, such as 
fees required to take the bar exam or teaching certification; and 
professional relicensing fees or business costs (including exam, 
continuing education courses, business license, permit, and 
registration fees) that are directly related to the immediate family 
member's occupation, when the immediate family member was licensed or 
certified in a profession, or owned a business, at the employee's 
previous official station and is required to secure or maintain a new 
professional license or certification, or business license or permit, 
to engage in that profession in a new jurisdiction because of unique 
licensing or certification requirements and authorities; or
    (n) Specialized shipment of hazardous materials, such as lithium 
batteries, when Federal, state, local, and foreign country laws or 
carrier regulations prohibit commercial shipment of certain articles 
not included as part of household goods, which cannot be otherwise 
transported to the new official station because of shipping and 
transportation restrictions.

Sec.  302-16.9  What are examples of types of costs not covered by the 
MEA?

    Examples of costs that are not reimbursable from the MEA are:
    (a) Losses in selling or buying real and personal property and 
costs related to such transactions;
    (b) Cost of additional insurance on household goods while in 
transit to the new official station or cost of loss or damage to such 
property;
    (c) Additional costs of moving household goods caused by exceeding 
the maximum weight limitation;
    (d) Costs of newly acquired items, such as the purchase or 
installation cost of new rugs or draperies;
    (e) Higher income, real estate, sales, or other taxes as the result 
of establishing residence in the new locality;
    (f) Fines imposed for traffic infractions while en route to the new 
official station locality;
    (g) Accident insurance premiums or liability costs incurred in 
connection with travel to the new official station locality, or any 
other liability imposed upon the employee for uninsured damages caused 
by accidents for which the employee or their immediate family is held 
responsible;
    (h) Losses as the result of sale or disposal of items of personal 
property (such as lithium batteries, gasoline, and natural gas) not 
considered convenient or practicable to move;
    (i) Damage or loss of clothing, luggage, or other personal effects 
while traveling to the new official station locality;
    (j) Subsistence, transportation, or mileage expenses in excess of 
the amounts reimbursed as per diem or other allowances under this 
subtitle;
    (k) Medical expenses due to illness or injuries while en route to 
the new official station or while living in temporary quarters at 
Government expense under the provisions of this chapter;
    (l) Costs incurred in conjunction with structural alterations (such 
as remodeling or modernizing of living quarters, garages or other 
buildings to accommodate privately-owned automobiles, appliances or 
equipment [e.g., a security system or electric vehicle charging 
station]); or replacing or repairing worn-out or defective appliances, 
or equipment shipped to the new location;
    (m) Costs incurred in connection with preparing a residence for 
sale or purchase (e.g., maintenance, repairs, cleaning);
    (n) Delivery charges or costs associated with newly-acquired items 
(such as appliances, security systems, locksmith service, or new 
vehicle) at the new official station for reasons of personal taste or 
preference and not required because of the relocation;
    (o) Costs unrelated to the quarantine, transportation, and handling 
of pets. Additional costs for lodging for a second room or boarding 
fees, micro-chipping, veterinary expenses (e.g., inoculations,

[[Page 3710]]

examinations, medical care and certification fees), routine care and 
grooming of pets, and purchases of crates and tags for the pets. 
Expenses for other animals (horses, fish, birds, reptiles, rodents, 
etc.) are not authorized because of their size, exotic nature, 
restrictions on shipping, host country restrictions, and special 
handling difficulties; or
    (p) Costs related to obtaining a visa, passport, immigration green 
card, birth certificate or other acceptable evidence of birth when 
required for official travel to foreign locations; charges for 
immunization, inoculations, other disease-preventative medical 
prophylaxis, including disease testing, that are required for official 
travel if not obtained through the agency. The expenses in this 
paragraph (p) may be reimbursable as part of the employee's relocation 
en route travel miscellaneous expenses as specified in 41 CFR 301-12.1.

Sec.  302-16.10  What standard of care must I use in incurring 
miscellaneous expenses?

    You must exercise the same care in incurring expenses that a 
prudent person would exercise if relocating at personal expense.

Subpart B--Agency Responsibilities

Sec.  302-16.100  What governing policies must we establish for MEA?

    For MEAs, you must establish policies and procedures governing:
    (a) Who will determine whether payment for an amount in excess of 
the lump sum MEA is appropriate; and
    (b) How you will pay a MEA in accordance with Sec. Sec.  302-16.2 
and 302-16.3.

Sec.  302-16.101  How should we administer the authorization and 
payment of miscellaneous expenses?

    You should limit payment of miscellaneous expenses to only those 
expenses that are necessary.

Sec.  302-16.102  Are there any restrictions to the types of costs we 
may cover?

    Yes, a MEA cannot be used to reimburse:
    (a) Costs or expenses incurred which exceed maximums provided by 
statute or in this subtitle;
    (b) Costs or expenses incurred but which are disallowed elsewhere 
in this subtitle;
    (c) Costs reimbursed under other provisions of law or regulations;
    (d) Costs or expenses incurred for reasons of personal taste or 
preference and not required because of the move;
    (e) Losses covered by insurance;
    (f) Fines or other penalties imposed upon the employee or members 
of their immediate family;
    (g) Judgments, court costs, and similar expenses growing out of 
civil actions; or
    (h) Any other expenses brought about by circumstances, factors, or 
actions in which the move to a new official station was not the 
proximate cause.

[FR Doc. 2025-00497 Filed 1-14-25; 8:45 am]
BILLING CODE 6820-14-P
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