U.S. federal lodging per diem rates take effect for 2026

New federal per diem rates for work travel, established by the U.S. General Services Administration (GSA), took effect on October 1, 2026. These rates dictate the daily allowance for lodging, meals, and incidental expenses for government employees and many private sector travelers.

An analysis by the business travel platform Engine reveals significant variations in how far these caps stretch across different cities. While the standard lodging cap rose from $110 to $113 per night, 295 destinations maintain higher specific caps. New York and Boston have the highest average caps at $291 and $284, respectively, yet they struggle to cover many hotel options; only 38% of rates in New York and 44% in Boston fit within the cap.

Conversely, travelers in cities like Aurora, Colorado, find more value. Aurora shares a $203 cap with Denver, but 96% of its hotel rates fall under the limit, compared to 67% in Denver. Similarly, in Irving, Texas, which uses the Dallas cap of $184, 85% of rates are covered. In Dallas, the cap is sufficient to cover 3.5-star hotels.