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I. Overview
On January 23, 2024, GSA issued a proposed regulation at 89 FR 4268, suggesting alterations to the FTR concerning relocation MEA. This regulation finalizes those suggested modifications as outlined above, along with additional detailed explanations below.
In accordance with 5 United States Code (U.S.C.) 5738, the Administrator of General Services is authorized to establish necessary regulations to execute laws pertaining to Federal employees when assigned a temporary change of station (TCS) or when relocated for Government interests. The primary authority for implementation lies within the FTR, codified in Title 41 of the Code of Federal Regulations, chapters 300 through 304.
GSA’s OGP perpetually assesses and modifies policies and regulations under its jurisdiction to meet Government relocation demands and to integrate optimal practices, as appropriate, in line with its ongoing mission to develop policies for travel by Federal civilian employees and other authorized individuals traveling at Government expense.
In accordance with 5 U.S.C. 5724a(f) and 5737(a)(6), an employee transferred for Government purposes from one official station to another, assigned to a TCS site, or who has concluded a TCS assignment and returned to their
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previous official station is approved for a relocation MEA.
The intention behind the relocation MEA is to alleviate some of the expenses incurred from relocating. The allowance pertains to expenses that are typical of living accommodations, such as fees for disconnecting and reconnecting appliances; adjusting and fitting rugs, drapes, and curtains moved from one home to another; utility charges or deposits that are not countered by subsequent refunds; loss of medical, dental, and other non-transferable agreements; and costs associated with changing automobile registrations and driver’s licenses.
The FTR stipulates that a relocation MEA may be disbursed through one of two methods: lump sum or actual expenses. Under the lump sum approach, the agency provides a lump sum amount without necessitating employee documentation of costs. According to the prevailing regulatory language, the lump sum payments are “either $650 or the equivalent of one week’s basic gross salary, whichever is lesser” for an employee relocating without immediate family, and “$1300 or the equivalent of two weeks’ basic gross pay, whichever is lesser” for an employee relocating with immediate family members.
Using the actual expense method, the agency may permit the employee to claim real costs depending on the nature of the expenses incurred, in amounts exceeding the determined lump sum payments. The employee substantiates any actual costs by itemizing and providing supporting documentation. Reimbursement is restricted to one or two weeks’ basic gross salary based on whether the employee has immediate family relocating with them, not to surpass the maximum rate payable for a position at GS-13, Step 10, within the General Schedule (base) (see 5 U.S.C. 5332).
This final regulation modifies the FTR by eliminating the relocation MEA lump sum figures from the FTR and instructing readers to refer to an FTR bulletin that contains the relocation MEA lump sum figures. GSA will issue the initial FTR bulletin with the relocation MEA lump sum figures concurrent with the effective date of the final regulation. Agencies are informed that these lump sum figures for relocation MEA are anticipated to rise since they were last revised in 2011. Going forward, GSA will publish FTR bulletins to regularly update the relocation MEA lump sum amounts, as necessary, based on shifts in the Consumer Price Index (CPI). Furthermore, the final regulation clarifies in the regulatory text that “basic gross pay,” as mentioned in FTR part 302-16, excludes “locality pay.” Refer to 5 U.S.C. 5302 and 5304.
This final rule further updates and clarifies the relocation MEA sections within the FTR and reorganizes them into a more logical sequence, including replacing the table at FTR § 302-16.2 with an updated example list for which relocation MEA may be authorized, and revising the list of examples for which relocation MEA may not be granted. It also removes the relocation MEA employee eligibility table at FTR § 302-16.3 and reformats it into an employee eligibility list.
II. Review of the Final Regulation
A. Summary of Major Changes
GSA has not introduced any substantial changes to the regulatory language from the proposed to the final rule.
B. Evaluation of Public Feedback
GSA received one comment regarding the proposed rule, suggesting that the relocation MEA lump sum should align with the amounts indicated in the Department of State Standardized Regulations (DSSR) and advocated for the retention of the relocation MEA lump sum figures within the FTR instead of being published in a bulletin, due to internal agency distribution concerns. In its reply, GSA explains that it will establish the lump sum figures based on the Consumer Price Index (CPI). While GSA anticipates its relocation MEA lump sum to be similar to that of the DSSR, the CPI varies. Therefore, the figures determined by GSA today may not precisely match the DSSR amounts since those figures were last updated in 2019. In addressing the commenter’s distribution concerns, publishing the relocation MEA lump sum in an FTR Bulletin gives GSA the flexibility to adjust the relocation MEA lump sum as needed to ensure fairer compensation to travelers consistent with the CPI. If GSA were“`html
To keep disseminating the figures in the FTR, such figures can solely be modified through a regulatory amendment, which may not correspond accurately to the existing CPI at that point. Additionally, a bulletin requires less time and administrative resources to release than a rule. Lastly, note 1 to § 302-16.6 comprises a direct link to GSA’s FTR Bulletins for simplified distribution, alongside the fact that announcements of FTR Bulletins are published in the
Federal Register
and contain a link to the Bulletin. GSA’s OGP also sends emails to all Federal agencies’ travel and relocation operations and policy program administrators to notify them of all FTR regulations and bulletins upon publication, suggesting that this information be communicated with pertinent offices within their agency. Moreover, GSA’s OGP briefs agency Senior Travel Official Council (STOC) members on FTR updates at regular intervals. Consequently, GSA will not amend the final rule based on this feedback.
C. Anticipated Cost Effect on the Public
This regulation does not impose cost implications on the public. Nevertheless, the revisions might lead to a minor cost increase for the Federal Government as the relocation MEA lump sum amounts are projected to rise. Specifically, GSA will issue an FTR bulletin detailing the relocation MEA lump sum amounts for an employee moving without immediate family members and for an employee relocating with immediate family members. As outlined in the anticipated rule, GSA foresees the average relocation MEA lump sum amount across Federal agencies escalating to $1,125, resulting in an estimated cumulative rise of $312,973 per annum agencywide (for agencies governed by the FTR).[]
III. Executive Orders 12866, 13563, and 14904
Executive Order (E.O.) 12866 (Regulatory Planning and Review) instructs agencies to evaluate all costs and benefits of available regulatory alternatives and, if regulation is deemed necessary, to choose regulatory methods that maximize net benefits (including potential economic, environmental, public health, safety effects, distributive impacts, and equity). E.O. 13563 (Enhancing Regulation and Regulatory Review) underscores the significance of quantifying both costs and benefits, minimizing costs, harmonizing rules, and fostering flexibility. E.O. 14094 (Revamping Regulatory Review) revises section 3(f) of E.O. 12866 and further reinforces the principles, structures, and definitions related to modern regulatory review as established in E.O. 12866 and E.O. 13563. The Office of Management
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and Budget’s Office of Information and Regulatory Affairs (OIRA) identified that the proposed rule constituted a significant regulatory action; however, following further discussions between GSA and OIRA, it has been confirmed that this final rule is not a significant regulatory action, and as such, it is exempt from review under section 6(b) of E.O. 12866.
IV. Congressional Review Act
OIRA has concluded that this rule is not deemed 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 recognized as the Congressional Review Act or CRA, generally stipulates that before a regulation may take effect, unless exempted, the agency issuing the rule must present a rule report, which includes a copy of the regulation, to each chamber of Congress and to the Comptroller General of the United States. This rule is exempt from CRA reporting obligations outlined under 5 U.S.C. 801 as it pertains to agency management or personnel under 5 U.S.C. 804(3)(B).
V. Regulatory Flexibility Act
This final regulation will not have a notable economic influence on a considerable number of small entities within the interpretation of the Regulatory Flexibility Act, 5 U.S.C. 601,
et seq.
Furthermore, this final regulation is also exempt from the Administrative Procedure Act in accordance with 5 U.S.C. 553(a)(2) due to its relevance to agency management or personnel. Hence, an Initial Regulatory Flexibility Analysis was not carried out.
VI. Paperwork Reduction Act
The Paperwork Reduction Act does not pertain here since the modifications to the FTR do not enforce recordkeeping or information collection obligations, or the gathering of information from offerors, contractors, or the public that necessitate the approval of the Office of Management and Budget (OMB) under 44 U.S.C. 3501,
et seq.
- Government personnel
- Relocation
- Travel and transportation costs
Robin Carnahan,
Administrator of General Services.
For the reasons outlined in the introduction, GSA amends 41 CFR part 302-16 to read as follows:
- 302-16.0
- In general.
- 302-16.1
- What is the objective of the miscellaneous expenses allowance (MEA)?
- 302-16.2
- Who qualifies and who does not qualify for a MEA?
- 302-16.3
- Is it necessary for my agency to authorize payment of a MEA?
- 302-16.4
- In what manner will I obtain the MEA?
- 302-16.5
- Am I allowed to receive an advance on funds for MEA?
- 302-16.6
- What amount can my agency reimburse for miscellaneous costs?
- 302-16.7
- Am I allowed to claim an amount greater than what is specified in this section?
- 302-16.8
- What types of expenses are examples covered by the MEA?
- 302-16.9
- What types of expenses are examples not covered by the MEA?
- 302-16.10
- What level of care is required when incurring miscellaneous expenses?
- 302-16.100
- What governing regulations must we implement for MEA?
- 302-16.101
- How should we manage the authorization and payment of miscellaneous costs?
- 302-16.102
- Are there limitations on the types of costs we can cover?
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5 U.S.C. 5738; 20 U.S.C. 905(a); E.O. 11609, as modified, 3 CFR, 1971-1975 Comp., p. 586.
General information.
(a) The pronouns “I”, “you”, and their variations used throughout subpart A of this part pertain to the employee, unless stated otherwise.
(b) The pronouns “we”, “you”, and their variations used throughout subpart B of this part pertain to the agency.
What is the function of the miscellaneous expenses allowance (MEA)?
The miscellaneous expenses allowance (MEA) aims to assist in covering various costs that arise due to relocation, assignment to a temporary official station (TCS), and the return to the previous official station after completing a TCS assignment.
Who qualifies and who does not qualify for a MEA?
(a) You qualify for a MEA if:
(1) Your agency has authorized or approved a transfer or a TCS;
(2) You have discontinued and established residency in relation to your transfer or TCS;
(3) You satisfy the relevant eligibility criteria in part 302-1 of this chapter; and
(4) You have signed a mandatory service agreement as outlined in part 302-2 of this chapter, if transferred.
(b) You do not qualify for a MEA if you are:
(1) A new appointee;
(2) An employee in the Senior Executive Service (SES) granted “last move home” benefits upon separation from Government employment;
(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 the place of actual residence for separation from Government employment; or
(5) Returning from an OCONUS official station to a new CONUS official station if relocation expenses have not been authorized for the new CONUS official station.
Is it necessary for my agency to authorize payment of a MEA?
Yes, if you fulfill the necessary eligibility conditions in § 302-16.2, your agency is required to authorize payment of a MEA.
In what manner will I obtain the MEA?
Your MEA will be reimbursed following your agency’s internal relocation policy.
Can I obtain a prepayment of funds for MEA?
No, your agency is not permitted to authorize a prepayment of funds for MEA. MEA may be compensated once you have moved to the new official station, upon your assignment to your TCS, or upon the conclusion of your TCS and return to your prior official station, as relevant.
What sum can my agency reimburse me for miscellaneous costs?
The subsequent amounts will be allocated for miscellaneous costs without the need for proof or documentation of expenses:
(a) Either a one-time amount specified in a Federal Travel Regulation (FTR) bulletin or the equivalent of one week’s basic gross remuneration, whichever is the smaller amount, if no immediate family is relocating with you; or
(b) Either a one-time amount specified in an FTR bulletin or the equivalent of two weeks’ basic gross remuneration, whichever is the smaller amount, if immediate family is relocating with you.
GSA issues the one-time amounts in an FTR bulletin periodically at
https://gsa.gov/ftrbulletins.
Can I claim an amount greater than what is stipulated in this section?
Yes, you are allowed to claim an amount beyond what is specified in § 302-16.6 if authorized by your agency; and
(a) Backed by acceptable factual statements, paid receipts, or other satisfactory evidence (documentation) justifying the claimed amounts; and
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(b) The total amount does not surpass your basic gross remuneration (at the point 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 sanctioned cannot exceed the highest 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.
What are some examples of costs covered by the MEA?
Miscellaneous expenses are costs linked with relocation that are not covered by other relocation benefits outlined in this chapter. Allowable expenses include but are not limited to the following and related items:
(a) Charges for disconnecting and connecting utilities (like gas, water, electricity), appliances, equipment (such as a security system or electric vehicle charging station), or conversion of appliances for use with available utilities;
(b) Costs for cutting and fitting rugs, draperies, and curtains when they are transferred from one residence to another;
(c) Deposits or fees for utilities not offset by eventual reimbursements;
(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 related to the cancellation of a contract when a new transfer hindered the employee from completing a purchase of a residence);
(e) Vehicle 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 mandated by host country law;
(g) Post office box rental fee when rented to maintain a stable mailing address during the time an employee departs the old residence and occupies a residence at the new official station;
(h) Rental agent fees typically charged for securing housing in foreign nations;
(i) Reassembly, setup, and tuning of a piano relocated for moving purposes;
(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 house-hunting trip, or are packing or unpacking;
(k) Rental car expenses while awaiting a delayed POV shipment to or from OCONUS if the transportation service provider (TSP) has not coordinated for the employee’s usage of a rental car at TSP expense. Reimbursement may be authorized beginning after the shipping company designated delivery date, shall not exceed 10 days, and does not include the days following the POV delivery or a new POV purchase 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 solely). Costs typically associated with the transportation, quarantine fees, and handling of dogs and cats. This includes pet-related expenses due to air carrier policies or imposed by the legal regulations of the employee’s new residence as an integral part of the process of admissions and licensing;
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(m) Professional relicensing fees mandated by the new official station that are distinctly connected to the employee’s profession, such as fees to undertake the bar examination or teaching certification; and professional relicensing fees or business expenditures (including examination, continuing education courses, business licensing, permit, and registration fees) that are closely tied to the immediate family member’s profession, when the immediate family member was licensed or certified in a profession, or operated a business, at the employee’s prior official station and needs to obtain or maintain a new professional license or certification, or business license or permit, to practice in that profession in a new jurisdiction due to unique licensing or certification prerequisites and authorities; or
(n) Specific shipment of hazardous materials, such as lithium batteries, when federal, state, local, and foreign laws or carrier regulations restrict commercial shipment of particular items not classified as part of household goods, which cannot be otherwise transported to the new official station due to shipping and transportation limitations.
What instances illustrate types of expenses not compensated by the MEA?
Instances of expenses that are not recoverable from the MEA include:
(a) Losses incurred from selling or purchasing real and personal property and expenses related to such dealings;
(b) Cost for extra insurance on household goods during transit to the new official station or expenses due to loss or damage to such assets;
(c) Additional expenses for moving household goods resulting from surpassing the maximum weight limit;
(d) Costs for newly acquired items, including the purchase or installation expenses of new carpets or curtains;
(e) Increased income, real estate, sales, or other taxes due to establishing residency in the new area;
(f) Penalties imposed for traffic violations while traveling to the new official station locale;
(g) Accident insurance premiums or liability expenses incurred in relation to travel to the new official station locality, or any other liabilities imposed on the employee for uninsured damages caused by incidents for which the employee or their immediate family is accountable;
(h) Losses as a result of selling or disposing of personal property items (such as lithium batteries, gasoline, and natural gas) that are deemed inconvenient or impractical to transport;
(i) Damage or loss of clothing, luggage, or other personal belongings while en route to the new official station locale;
(j) Living, travel, or mileage expenditures beyond the amounts reimbursed as per diem or other allowances under this subtitle;
(k) Medical costs incurred due to illness or injuries while traveling to the new official station or during temporary accommodations at Government expense under this chapter;
(l) Expenses incurred in connection with structural modifications (such as remodeling or modernizing living quarters, garages, or other buildings to accommodate privately-owned vehicles, appliances, or equipment [
e.g.,
a security system or electric vehicle charging station]); or replacing or repairing worn-out or defective appliances, or equipment transported to the new location;
(m) Costs associated with preparing a residence for sale or acquisitions (
e.g.,
maintenance, repairs, cleaning);
(n) Delivery fees or expenses related to newly-acquired items (such as appliances, security systems, locksmith services, or a new vehicle) at the new official station for personal preference and not necessitated by the relocation;
(o) Costs not connected to the quarantine, transportation, and care of pets. Additional charges for lodging for a second room or boarding costs, micro-chipping, veterinary fees (
e.g.,
vaccinations,
( print page 3710)
examinations, medical treatment and certification fees), routine care and grooming of pets, and expenses for crates and tags for the pets. Charges for other animals (horses, fish, birds, reptiles, rodents, etc.) are not permitted due to their size, exotic characteristics, shipping restrictions, host country limitations, and special handling challenges; or
(p) Costs associated with acquiring a visa, passport, immigration green card, birth certificate, or other acceptable evidence of birth when needed for official travel to foreign destinations; fees for vaccinations, inoculations, other preventive medical measures, including disease testing, that are required for official travel if not procured via the agency. The expenses in this paragraph (p) may be reimbursable as part of the employee’s miscellaneous expenses during relocation travel as specified in 41 CFR 301-12.1.
What level of diligence must I apply in incurring miscellaneous expenses?
You must apply the same level of prudence in incurring expenses that a wise individual would apply if relocating at their own expense.
What administrative guidelines must we establish for MEA?“`html
For MEAs, it is essential to develop guidelines and protocols addressing:
(a) Who will assess whether payment for an amount surpassing the lump sum MEA is suitable; and
(b) The procedure for disbursing a MEA in compliance with §§ 302-16.2 and 302-16.3.
What is the best way to manage the authorization and payment of miscellaneous expenses?
Payments for miscellaneous expenses should be restricted to only those necessary expenditures.
Are there any limitations regarding the types of expenditures we can reimburse?
Indeed, a MEA cannot be utilized to reimburse:
(a) Expenditures or costs incurred that surpass maximums stipulated by legislation or in this subtitle;
(b) Expenditures or costs incurred that are disallowed in other sections of this subtitle;
(c) Costs reimbursed under different legal provisions or regulations;
(d) Expenditures or costs incurred for reasons of personal preference or taste and not necessary due to the relocation;
(e) Losses that are covered by insurance;
(f) Fines or additional penalties imposed on the employee or members of their immediate family;
(g) Judgments, court costs, and similar expenses arising from civil litigation; or
(h) Any other costs resulting from circumstances, factors, or actions where the relocation to a new official station was not the direct cause.
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