The General Services Administration (GSA) has just finalized the most significant overhaul of federal travel and relocation policies since 1998. As reported by FEDweek, this sweeping modernization of the Federal Travel Regulation (FTR) cuts red tape, updates reimbursement limits, and introduces critical new financial protections for employees on the move.
Whether you are looking at a Permanent Change of Station (PCS) or frequent temporary duty (TDY) travel, these changes directly impact your wallet and your paperwork load.
🚚 Key Changes You Need to Know
The new rules focus on flexibility and aligning federal policy with modern real estate and travel realities. Here are the standout updates:
1. Faster Household Goods (HHG) Approvals
Previously, agencies were often required to perform a complex cost comparison between the “Commuted Rate” (a lump sum based on weight/distance) and the “Actual Expense” method (reimbursement for every receipt) before authorizing a move.
- The Change: Agencies now have the flexibility to authorize the Commuted Rate without this mandatory comparison if they determine it is efficient.
- The Benefit: This cuts administrative delays, potentially getting your move approved faster and putting the control of the logistics back in your hands sooner.
2. TQSE “Lodgings Plus” is Now the Standard
For Temporary Quarters Subsistence Expenses (TQSE), the GSA has shifted its preference.
- The Change: The “Lodgings Plus” method is now the preferred reimbursement model. This method reimburses your actual lodging costs (up to a limit) plus a flat per diem for meals and incidentals.
- The Impact: This simplifies record-keeping compared to the “Actual Expense” method, where every sandwich and coffee needed a receipt trail. Agencies can now discontinue the Actual Expense method if they deem it burdensome.
3. Real Estate Broker Fees: A Massive Win
In response to recent shifts in the real estate industry (specifically the National Association of Realtors settlement), the GSA has issued a temporary waiver that is a game-changer for homebuyers.
- The Change: Agencies can now reimburse employees for buyer’s broker fees or commissions if they are required to pay them when purchasing a home at a new duty station.
- Retroactive: This provision is retroactive to August 17, 2024, meaning if you moved recently and paid these fees out of pocket, you may be eligible for reimbursement.
📊 Sound Data: More Cash for “Miscellaneous” Costs
One of the most immediate financial wins in this overhaul is the update to the Miscellaneous Expenses Allowance (MEA). This allowance covers the hidden costs of moving—like disconnecting appliances, cutting rugs, or new vehicle registration.
The GSA has increased the lump-sum limits to reflect inflation:
- Employee Only: The new lump sum is $905 (or the equivalent of one week’s basic gross pay, whichever is less).
- Employee with Family: The new lump sum is $1,810 (or two weeks’ basic gross pay, whichever is less).
Why this matters: Most employees choose the lump sum to avoid the hassle of itemizing every small expense. These higher limits mean more cash in your pocket upfront to handle the inevitable small costs of a PCS move.
🛡️ Relocation is a Financial Event. Treat it Like One.
A PCS move is more than just a logistical challenge; it is a major financial disruption. Between managing lump sums, navigating tax implications (remember, some moving expenses are taxable income), and handling cash flow while waiting for reimbursements, your financial plan can easily get derailed.
This is where Internal Benefit Advisors steps in. We help you look beyond the boxes to see the bigger financial picture.
How We Help You Navigate a Move:
- Lump Sum Tax Strategy: We help you prepare for the tax impact of relocation incentives and lump-sum payments so you aren’t surprised by a bill from the IRS.
- Cash Flow Management: We help you structure your finances to bridge the gap between paying for moving costs and receiving your government reimbursement.
- Retirement & Location: If this is your final move before retirement, we analyze how your new locality pay and state tax laws will impact your pension and TSP withdrawal strategy.
The GSA has updated its rules to help you. Now, update your financial plan to match.
Contact Internal Benefit Advisors today for a comprehensive review of your benefits and financial strategy.
References
- FEDweek. “GSA Finalizes Changes to Travel, Relocation Policies.”
- General Services Administration (GSA). FTR Bulletin 25-05: Relocation Allowances – Miscellaneous Expenses Allowance.
- General Services Administration (GSA). FTR Bulletin 25-03: Waiver for Broker Fees.
- Federal Register. Federal Travel Regulation; Reorganizing and Streamlining. (FTR Amendment 2025-02).
- Internal Benefit Advisors. Retrieved from https://internalbenefitadvisors.com
