President signs federal travel reform law

Attention federal travelers: Put away your own plastic. You need to use your agency's travel charge card for travel expenses.

President Clinton on Monday signed the 1998 Travel and Transportation Reform Act (H.R. 930), which authorizes the General Services Administration to require federal employees to use government charge cards, rather than personal credit cards, for travel expenses. The bill allows GSA to permit some exceptions if agencies request waivers from the rule.

In passing the requirement, Congress hoped that agencies will take advantage of charge card companies' rebate offers. The more the government uses the cards, the more money agencies can earn back in rebates. Congress also hopes to improve federal recordkeeping through greater use of charge cards, which make tracking expenses easier than with paper vouchers.

In addition, the bill requires agencies to reimburse employees for travel expenses within 30 days, or the agencies must pay the employees a late fee. GSA will decide how much the late fee will be.

The bill also mandates that agencies audit bills for travel expenses before paying them. By conducting pre-payment audits, GSA expects to save $50 million a year in reduced overpayments and collection activities.

Federal employees who were hit with huge tax bills after a 1992 change in tax laws will be reimbursed under H.R. 930. The 1992 Energy Act limited the income tax deduction for business-related travel expenses incurred while away from home to a maximum of one year, but the IRS did not inform agencies until December 1993. So some employees were hit with large tax bills that year. GSA will repay about $4 million to the affected employees.