Federal Travel Regulation (FTR); Relocation Allowance-Temporary Quarters Subsistence Expenses (TQSE), 37975-37984 [2024-09485]

Agencies

• General Services Administration

[Federal Register Volume 89, Number 89 (Tuesday, May 7, 2024)]
[Rules and Regulations]
[Pages 37975-37984]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-09485]


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GENERAL SERVICES ADMINISTRATION

41 CFR Parts 300-3, 302-6, and 302-17

[FTR Case 2022-02; Docket No. GSA-FTR-2022-0012, Sequence No. 2]
RIN 3090-AK63


Federal Travel Regulation (FTR); Relocation Allowance--Temporary 
Quarters Subsistence Expenses (TQSE)

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) 
with respect to temporary quarters subsistence expenses (TQSE) 
allowances. Changes include implementing a third TQSE methodology, 
redefining the current TQSE methods, lowering the percentage 
multipliers for calculating TQSE maximum daily amounts, and prohibiting 
adjustments to TQSE percentage multipliers for househunting days. The 
final rule also exempts temporary quarters (TQ) located in 
Presidentially-Declared Disaster areas from the ``reasonable 
proximity'' requirement and allows agencies to authorize TQSE at the 
applicable locality per diem allowance or authorize actual expenses on 
an individual basis. This rule establishes an exception to authorizing 
actual expenses on an individual basis by which agencies can issue a 
blanket actual expense authorization for employees authorized to occupy 
TQ in Presidentially-Declared Disaster areas. The final rule will also 
update and clarify some TQSE sections and rearrange them into a more 
sequential order.

DATES: Effective June 6, 2024. Applicability Date: This rule is 
applicable for relocations authorized after June 30, 2024.

FOR FURTHER INFORMATION CONTACT: For clarification of content, contact 
Mr. Rodney (Rick) Miller, Program Analyst, Office of Government-wide 
Policy, 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 2022-02.

SUPPLEMENTARY INFORMATION: 

[[Page 37976]]

I. Background

    GSA published a proposed rule at 88 FR 33067 on May 23, 2023, which 
proposed changes to the FTR with respect to TQSE allowances. 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 Office of Government-wide Policy (OGP) continually reviews 
and adjusts policies and regulations under its purview to address 
current Government relocation needs and 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.
    Each year, the Federal Government spends more than $1.2 billion on 
relocation allowances to reimburse an average of 28,800 employees for 
their related expenses. Federal agencies can offer relocation 
allowances as an incentive to assist with defraying some of the costs 
for relocating individuals. The FTR provides regulatory procedures for 
certain mandatory and discretionary relocation allowances depending on 
the individual's type of movement.
    Pursuant to 5 U.S.C. 5724a(c) and 5737(a)(5), an employee 
transferred in the interest of the Government may be authorized a TQSE 
allowance to reimburse the employee and the employee's immediate family 
members for subsistence expenses incurred when it is necessary to 
occupy TQ. TQSE may be authorized for the following transfers: between 
official duty stations within the U.S.; from a foreign area to an 
official duty station in the U.S.; or assignment to a temporary 
official station and/or permanently assigned to a temporary official 
station within the U.S.
    Agencies may offer two existing methods of TQSE: TQSE-actual 
expense (TQSE-AE) or TQSE-lump sum (TQSE-LS). From fiscal years 2018 to 
2022, Federal agencies have approved about 12,000 TQSE claims annually 
for employees who relocated, with agencies identifying TQSE-AE as the 
more utilized reimbursement method.
    Under the TQSE-AE method, the employee is reimbursed the cost of 
their actual subsistence expenses not to exceed the authorized maximum 
allowable amount. The TQSE-AE method uses the standard continental 
United States (CONUS) per diem rate or the outside the continental 
United States (OCONUS) non-foreign area per diem rate as the applicable 
per diem rate based on the TQ location. The employee and each of the 
employee's immediate family members receives a percentage of that rate. 
The rate is applied to the first 30-day increment of occupying TQ and a 
reduced rate is applied after 30 days. Occupancy of TQ may extend up to 
the statutory maximum of 120 consecutive days. The employee documents 
their incurred daily allowable expenses, which may include: TQ lodging, 
including taxes; meals and/or groceries; fees and tips incident to 
meals and TQ lodging; and laundry/dry cleaning of clothes. The employee 
provides TQ lodging receipt(s) and a receipt for every expense over 
$75, for each 30-day period of TQ occupancy.
    In 2005, the Governmentwide Relocation Advisory Board (GRAB), which 
included representatives from Government agencies, private-sector 
corporate relocation departments, relocation industry associations, 
and/or relocation industry service providers, mentioned in its 
``Findings and Recommendations'' that the TQSE-AE method is 
administratively burdensome and time-consuming for employees, travel 
examiners, and certifying officials.
    Since 1966, Title 5 of the U.S. Code has provided authority for 
agencies to reimburse TQSE in connection with an employee transferred 
in the interest of the Government. At that time, only one per diem rate 
was used within CONUS--the standard CONUS rate. Since that time, 
however, GSA began establishing CONUS non-standard area (NSA) per diem 
rates for areas where the standard CONUS rate was insufficient. 
Currently, Federal agencies have employees assigned to offices and 
military bases in CONUS NSAs where the standard CONUS rate is 
insufficient for obtaining TQ lodging and meals under the TQSE-AE 
method. This is particularly true for single employees. Accordingly, 
for TQSE-AE and all TQSE methods, the final rule will allow for CONUS 
NSA per diem rates to be used as an applicable per diem rate to 
calculate TQSE, depending upon where TQ will be occupied.
    This final rule will also clarify that there is no requirement to 
separate maximum amounts for TQ lodging and M&IE in calculating TQSE-AE 
reimbursement. Accordingly, the separate allowances for TQ lodging and 
M&IE may be combined to produce a single maximum daily amount (which 
will allow some of the M&IE rate to offset the TQ lodging cost). 
Agencies can still ensure that an employee is not overcompensated by 
using the single maximum daily amount while also accounting for the 
rate change after 30 days in TQ.
    Under the TQSE-LS method, agencies may offer a lump sum amount 
based on the standard CONUS, CONUS NSA, or OCONUS non-foreign area per 
diem rates, as appropriate, depending on the locality of the old and/or 
new official stations and wherever TQ will be occupied. Under this 
reimbursement method, a percentage of the maximum applicable per diem 
rate is paid to the employee and the employee's immediate family 
members for a maximum of 30 days of TQSE. Under TQSE-LS, there is no 
requirement to document and itemize expenses; however, the employee 
must certify that they occupied TQ.
    To improve employees' relocation experience and assist agencies in 
processing relocation expenses reimbursement, GSA is implementing a 
third method of TQSE titled ``temporary quarters subsistence expenses-
lodgings plus'' (TQSE-LP). This third method will be the preferred TQSE 
reimbursement method for agencies to offer to employees; however, 
agencies may continue to offer TQSE-AE and/or TQSE-LS as an 
alternative. In accordance with 5 U.S.C. 5724a(h), TQSE-LP must follow 
the limitations prescribed for payments of subsistence expenses under 5 
U.S.C. 5702. TQSE-LP is in line with 5 U.S.C. 5702 which entitles an 
employee who performs official business away from their official 
station, a per diem allowance, reimbursement for actual and necessary 
expenses, or a combination of both. The FTR implements the 
``combination of both'' statutory language by utilizing the temporary 
duty (TDY) ``lodgings-plus per diem'' methodology, which entitles an 
employee to reimbursement of actual lodging expenses up to a maximum 
amount by locality area, as supported by receipts, and a meals and 
incidental expense (M&IE) allowance, which may be reimbursed without 
itemization or receipts. Accordingly, the new TQSE-LP method will 
follow similar principles as the TDY travel ``lodgings-plus'' method of 
per diem for

[[Page 37977]]

reimbursement of TQSE under Chapter 302.
    A difference between TDY lodgings-plus and TQSE-LP is that the TDY 
per diem allowance excludes lodging taxes and laundry/dry cleaning 
expenses from the per diem rates in CONUS and allows the traveler to 
claim them as a separate TDY miscellaneous expense under part 301-12. 
However, part 302-6 does not contain or adopt by reference the 
provisions of Chapter 301 permitting recovery of these types of 
miscellaneous expenses, nor are lodging taxes and laundry/dry cleaning 
expenses included in part 302-16. The final rule clarifies that 
laundry/dry cleaning expenses are included in the TQSE daily allowable 
M&IE expenses and TQ lodging taxes are separately reimbursable TQSE 
miscellaneous expenses.
    The new TQSE-LP method follows TQSE-LS and TQSE-AE by calculating 
reimbursement using the applicable per diem rate for the locality of 
the old and/or new official stations wherever TQ lodging will be 
occupied in the U.S. As with TQSE-AE, the new TQSE-LP method permits 
occupancy of TQ beyond the initial authorization of 30 days (up to a 
maximum of 120 consecutive days), and reduces the maximum daily amount 
of TQSE after the initial 30-day period of TQ occupancy. Unlike TQSE-
AE, however, the TQSE-LP method will require that TQ lodging and M&IE 
remain as separate maximum amounts for purposes of calculating the 
maximum daily amount of TQSE for the employee and the employee's 
immediate family members.
    When compared with TQSE-AE, the new TQSE-LP method results in a 
more efficient process for the traveler, travel examiner, and 
certifying official and significantly reduces the administrative burden 
of maintaining, submitting, and reviewing all subsistence expenses 
receipts and claims, other than the required lodging receipt. The 
reduced administrative burden should increase employee satisfaction 
with the relocation process, which is important for employee 
recruitment and retention purposes.
    The final rule also, in some cases, reduces the percentage 
multipliers used to calculate the TQSE-AE and TQSE-LP maximum daily 
amount for each 30-day increment of TQSE. Because GSA is also 
authorizing the use of CONUS NSA rates instead of requiring use of the 
CONUS standard rate when applicable, GSA has determined that lowering 
the percentage multipliers will still provide reasonable and equitable 
reimbursement to employees and their immediate family members for TQSE-
AE and TQSE-LP.
    Pursuant to 5 U.S.C. 5724a(b), an agency may authorize an employee 
and/or spouse who is transferring between official stations located 
within the United States to take one househunting trip (HHT) to seek 
permanent residence quarters at a new official station. The purpose of 
the HHT is to lower the overall TQ cost. Accordingly, agencies may 
reduce the number of days of TQSE if HHT is authorized. The agency also 
has the discretion to authorize full HHT (5 U.S.C. 5724a(b)) and 
subsequent TQSE (5 U.S.C. 5724a(c)), as the two are separate 
entitlements.
    This final rule clarifies the effect on TQSE when an employee 
performs an HHT prior to relocating to the new official station. 
Specifically, agencies may reduce the number of overall TQSE days by 
the HHT days, but are not permitted to use HHT days to reduce the 
percentage multiplier for calculating TQSE.
    Further, the final rule eliminates the need for GSA to issue an FTR 
bulletin waiving FTR 302-6.9, which currently requires that TQ be in 
reasonable proximity to the old and/or new official stations, and FTR 
302-6.102, which currently limits the applicable per diem allowance for 
TQSE-AE to the standard CONUS rate for TQ located in CONUS. Instead, 
the final rule lists TQ located in a Presidentially-Declared Disaster 
area as an exception to the ``reasonable proximity'' requirement, 
removes the limitation at 302-6.102, and allows agencies to authorize 
TQSE at the applicable locality per diem allowance or to authorize 
actual expenses (not to exceed the 300% ceiling) on an individual basis 
for TQ located in a Presidentially-Declared Disaster area. This rule 
establishes an exception to issuing individual actual expense 
authorizations by which agencies may issue a blanket actual expense 
authorization for employees authorized to occupy TQ in an area subject 
to a Presidentially-Declared Disaster. These changes should result in 
quicker notification to agencies and employees of their TQSE during a 
Presidentially-Declared Disaster rather than waiting for GSA to issue 
an FTR bulletin waiving such provisions.
    Finally, the final rule will also modify some FTR sections 
regarding TQSE and rearrange them into a more sequential order.

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, only minor technical edits and edits 
that clarify the intent of the rule.

B. Analysis of Public Comments

    No public comments were received in response to the proposed rule.

C. Expected Cost Impact to the Public

    GSA performed an economic analysis on the final rule. GSA used the 
Business Travel and Relocation Dashboard to calculate an average of 
28,800 domestic and international relocations per year based on figures 
from across the Federal Government for fiscal years 2018 to 2022, with 
Federal agencies authorizing approximately 12,000 employees to receive 
TQSE annually. TQSE is a discretionary relocation entitlement that the 
agency may authorize. The agency chooses which TQSE methods are 
available to the employee and the number of days authorized for 
reimbursement. GSA notes that Federal agencies are only required to 
track specific relocation data appearing on the Business Travel and 
Relocation Dashboard, but are not required to specify the method of 
TQSE authorized (actual expense or lump sum), if TQSE is for an 
employee only or an employee with immediate family members, locations 
where TQ were occupied, or the total number of days of TQ for each 
claim within the U.S. GSA used the FY23 CONUS per diem rates to 
anticipate how TQSE-LP compares to existing policy in terms of cost for 
those relocating to high cost areas.
    The standard CONUS per diem rate for FY23 was $157 ($98 Lodging + 
$59 M&IE). In FY23, there were 316 non-standard areas (NSAs) where GSA 
established per diem rates that were higher than the standard CONUS 
rate. Approximately half of the NSAs had seasonal rates. Adjustments to 
the TQSE percentage multipliers under the final rule, and their cost 
impact, are analyzed below: for the employee's (and/or unaccompanied 
spouse or domestic partner's) portion, the lodging and M&IE rates use 
the same percentage for the initial 30-days of TQ (currently 100%) and 
the second 30-day increment (currently 75%). However, the final rule 
reduces the percentage for the last 60 days of TQ from the current rate 
of 75% to 55%. The immediate family members' portion (currently 75% for 
accompanied spouses or domestic partners and immediate family members 
aged 12 and over; and 50% for immediate family members under 12) will 
be reduced for the first 30 days of TQ to 50% and 40% respectively, and 
further reduced for each 30 day increment (45% and 35% for the second

[[Page 37978]]

30-day increment, respectively; 40% and 30% for the last 60 days, 
respectively). There are 209 NSAs where the average (across seasons) 
per diem rate reduced to 75% would be less than the standard CONUS rate 
of $157. The average across all 316 NSAs of the average per diem rate 
reduced to 75% is $156, $1 less than the standard CONUS rate.
    The final rule implements the TQSE-LP method which is similar to 
the Department of State foreign transfer allowance (FTA), ``Pre-
Departure Subsistence Allowance and Home Service Allowance--Partial 
Flat Rate'' reimbursement methods used for Foreign Service Officers 
relocating to and from foreign assignments and occupying temporary 
quarters in the U.S. The reduction of TQSE percentage multipliers under 
this rule is similar to the way that temporary quarters subsistence 
allowance (TQSA) is structured for Foreign Service Officers and other 
Federal employees who relocate and occupy temporary quarters in a 
foreign country.
    Use of the new TQSE-LP reimbursement method could result in an 
increase in overall cost; however, such increased costs are likely to 
be offset by anticipated cost savings from streamlining the 
administrative process for the traveler, agency travel examiners, and 
certifying officials. Notably, cost avoidance for employees electing 
TQSE-LP over TQSE-AE is difficult to measure in full as the 
calculations do not take into account time saved by travelers for 
retaining and recording each individual lodging, meal and laundry 
expense for all family members. TQSE-LP will increase employee 
satisfaction with the relocation process and significantly reduce the 
agency and employee administrative burden of maintaining, submitting 
and reviewing all subsistence expenses receipts and claims. 
Accordingly, TQSE-LP could maintain a budget neutral or possible cost 
reduction due to lower anticipated administrative costs.

III. Executive Orders 12866, 13563, and 14094

    Executive Order (E.O.s) 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 and 
Budget's Office of Information and Regulatory Affairs (OIRA) has 
determined that this rule is a significant regulatory action and, 
therefore, it was 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 Parts 300-3, 302-6, and 302-17

    Government employees, Relocation, Travel and Transportation 
expenses.

Robin Carnahan,
Administrator of General Services.

    For reasons set forth in the preamble, GSA amends 41 CFR parts 300-
3, 302-6, and 302-17 as set forth below:

PART 300-3--GLOSSARY OF TERMS

0
1. The authority for part 300-3 continues to read as follows:

    Authority:  5 U.S.C. 5707; 40 U.S.C. 121(c); 49 U.S.C. 40118; 5 
U.S.C. 5738; 5 U.S.C. 5741-5742; 20 U.S.C. 905(a); 31 U.S.C. 1353; 
E.O. 11609, as amended, 3 CFR, 1971-1975 Comp., p. 586, Office of 
Management and Budget Circular No. A-126, revised May 22, 1992.


Sec.  300-3.1  [Amended]

0
2. Amend Sec.  300-3.1 by--
0
a. Adding a note at the end of the definition ``Per diem allowance''; 
and
0
b. Adding in alphabetical order, the definition for ``Presidentially-
Declared Disaster''.
    The additions read as follows:


Sec.  300-3.1  What do the following terms mean?

* * * * *
    Per diem allowance--* * *

    Note 1 to definition of ``Per diem allowance''. For the purposes 
of chapter 302 of this subtitle, laundry/dry cleaning expenses are 
part of the incidental expenses portion of the per diem allowance 
for temporary quarters subsistence expenses (TQSE) and temporary 
quarters (TQ) lodging taxes are separately reimbursable TQSE 
miscellaneous expenses (see Sec.  302-6.28 and part 302-16 of this 
subtitle).

* * * * *
    Presidentially-Declared Disaster--A major disaster or emergency 
declared by the President of the United States pursuant to the Robert 
T. Stafford Disaster Relief and Emergency Assistance Act, as amended 
(42 U.S.C. 5121 et seq.).
* * * * *

0
3. Revise part 302-6 to read as follows:

PART 302-6--ALLOWANCE FOR TEMPORARY QUARTERS SUBSISTENCE EXPENSES

Subpart A--General Rules
Sec.
302-6.1 What are ``temporary quarters subsistence expenses (TQSE)''?
302-6.2 What is the purpose of the TQSE allowance?
302-6.3 What are ``temporary quarters''?
302-6.4 Am I eligible for a TQSE allowance?

[[Page 37979]]

302-6.5 Who is not eligible for a TQSE allowance?
302-6.6 Am I eligible for a TQSE allowance if I transfer to or from 
a foreign area?
302-6.7 Must my agency authorize payment of a TQSE allowance?
302-6.8 Under what circumstances will I receive a TQSE allowance?
302-6.9 Who may occupy temporary quarters at Government expense?
302-6.10 Where may I/we occupy temporary quarters at Government 
expense?
302-6.11 May my immediate family and I occupy temporary quarters at 
different locations?
302-6.12 How soon may I/we begin occupying temporary quarters at 
Government expense?
302-6.13 What is the latest period for which TQSE reimbursement may 
begin?
302-6.14 When does my authorized period for TQSE reimbursement end?
302-6.15 May I and/or my immediate family occupy temporary quarters 
longer than the period for which I am authorized to claim TQSE 
reimbursement?
302-6.16 May the period for which I am authorized to claim TQSE 
reimbursement for myself be different from that of my immediate 
family?
302-6.17 What effect do partial days of temporary quarters occupancy 
have on my authorized period for claiming TQSE reimbursement?
302-6.18 How is my TQSE allowance affected if my temporary quarters 
become my permanent residence quarters?
302-6.19 May I receive a TQSE allowance if I am receiving another 
subsistence expense allowance?
302-6.20 May I be reimbursed for transportation expenses incurred 
while I am occupying temporary quarters?
302-6.21 May I be reimbursed for TQSE while occupying my permanent 
residence quarters at my old official station?
302-6.22 What methods may my agency use to reimburse me for TQSE?
302-6.23 What is the ``applicable per diem rate'' under the TQSE 
reimbursement methods?
302-6.24 How may my TQSE reimbursement be affected if I relocate to, 
or currently occupy, temporary quarters in a Presidentially-Declared 
Disaster area?
302-6.25 Must I document my TQSE to receive reimbursement?
302-6.26 May I receive an advance of funds for TQSE?
302-6.27 Must I use a Government contractor-issued travel charge 
card for TQSE?
302-6.28 Are temporary quarters lodging taxes and laundry/dry 
cleaning expenses included in the TQSE amount?
302-6.29 How long may I be authorized to claim TQSE reimbursement?
302-6.30 May my agency reduce my authorized number of TQSE days if I 
am authorized a househunting trip?
302-6.31 What is a ``compelling reason'' warranting extension of my 
authorized period for claiming TQSE-LP or TQSE-AE reimbursement?
302-6.32 May I interrupt occupancy of temporary quarters?
Subpart B--TQSE Methods of Reimbursement
302-6.100 What am I paid under the TQSE-LP reimbursement method?
302-6.101 What am I paid under the TQSE-AE reimbursement method?
302-6.102 What am I paid under the TQSE-LS reimbursement method?
302-6.103 May my agency reduce my TQSE allowance below the ``maximum 
allowable amount''?
Subpart C--Agency Responsibilities
302-6.200 How should we administer the TQSE allowance?
302-6.201 What governing policies must we establish for the TQSE 
allowance?
302-6.202 Under what circumstances may we authorize the TQSE 
allowance?
302-6.203 What factors should we consider in determining whether the 
TQSE allowance is actually necessary?
302-6.204 What factors should we consider in determining what TQSE 
method(s) to offer an employee?
302-6.205 Must we require transferees to sign a statement that TQSE 
will be incurred?
302-6.206 When must we make the TQSE-LS payment to the transferee?
302-6.207 What factors should we consider in determining whether 
quarters are temporary?

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

Subpart A--General Rules

    Note 1 to subpart A. Use of pronouns ``I'', ``you'', and their 
variants throughout this subpart refers to the employee, unless 
otherwise noted.

Sec.  302-6.1  What are ``temporary quarters subsistence expenses 
(TQSE)''?

    Temporary quarters subsistence expenses or TQSE are subsistence 
expenses incurred by an employee and/or the employee's immediate family 
while occupying temporary quarters. TQSE does not include 
transportation expenses incurred during occupancy of temporary quarters 
(see Sec.  302-6.20).


Sec.  302-6.2  What is the purpose of the TQSE allowance?

    The TQSE allowance is intended to reimburse an employee reasonably 
and equitably for subsistence expenses incurred when it is necessary to 
occupy temporary quarters incident to an official relocation or 
temporary change of station.


Sec.  302-6.3  What are ``temporary quarters''?

    The term ``temporary quarters'' refers to lodging obtained for the 
purpose of temporary occupancy from a private or commercial source 
incident to an official relocation or temporary change of station.


Sec.  302-6.4  Am I eligible for a TQSE allowance?

    You are eligible for a TQSE allowance if you are an employee who is 
authorized to transfer to a new official station, including upon 
assignment to a temporary official station (see FTR 302-3.413(b)) and 
permanent assignment to a temporary official station (see FTR 302-
3.427(e)); and
    (a) Your new official station is located within the United States; 
and
    (b) Your old and new official stations are at least 50 miles apart 
(as measured by map distance) via a usually traveled surface route; and
    (c) Your new official station meets the 50-mile distance test (see 
Sec.  302-2.6(a)).


Sec.  302-6.5  Who is not eligible for a TQSE allowance?

    (a) New appointees;
    (b) Employees assigned under the Government Employees Training Act 
(5 U.S.C. 4109);
    (c) Senior Executive Service (SES) employees making their last move 
home for the purpose of separation from Government service;
    (d) Employees returning from an overseas assignment for the purpose 
of separation from Government service; and
    (e) Employees who were granted a waiver to the 50-mile distance 
test under Sec.  302-2.6(b).


Sec.  302-6.6  Am I eligible for a TQSE allowance if I transfer to or 
from a foreign area?

    (a) You may not receive a TQSE allowance under this part when you 
transfer to a foreign area. However, you may qualify for a comparable 
allowance under the Department of State Standardized Regulations (DSSR) 
(Government Civilians, Foreign Areas) (see Sec.  302-3.101 of this 
chapter).
    (b) You may receive a TQSE allowance under this part when you 
transfer from a foreign area and occupy temporary quarters in the 
United States. You may also be authorized a comparable allowance, 
prescribed by the Department of State, at the foreign area preceding 
final departure subsequent to the necessary vacating of residence 
quarters (see Sec.  302-3.101 of this chapter).


Sec.  302-6.7  Must my agency authorize payment of a TQSE allowance?

    No, TQSE is a discretionary allowance. Your agency determines 
whether it is in the Government's interest to pay TQSE.

[[Page 37980]]

Sec.  302-6.8  Under what circumstances will I receive a TQSE 
allowance?

    You will receive a TQSE allowance if:
    (a) Your agency authorizes it before you occupy the temporary 
quarters;
    (b) Your relocation authorization specifies the TQSE method and the 
number of days allowed for you to receive TQSE;
    (c) You have signed a service agreement; and
    (d) You meet any additional conditions your agency has established.


Sec.  302-6.9  Who may occupy temporary quarters at Government expense?

    Only you and/or your immediate family, as annotated on the 
relocation authorization, may occupy temporary quarters at Government 
expense.


Sec.  302-6.10  Where may I/we occupy temporary quarters at Government 
expense?

    You and/or your immediate family may occupy temporary quarters in 
the United States at Government expense within reasonable proximity 
(approximately 50 miles) of the geographical area of your old and/or 
new official stations. Neither you nor your immediate family may be 
reimbursed for occupying temporary quarters at any other location, 
unless justified by special circumstances (e.g., the temporary quarters 
location is subject to a Presidentially-Declared Disaster) that are 
reasonably related to your transfer.


Sec.  302-6.11  May my immediate family and I occupy temporary quarters 
at different locations?

    Yes. Under various circumstances, you and your immediate family may 
need to occupy temporary quarters at different locations (e.g., if you 
must report to the new official station while the immediate family 
delays the relocation to have family members complete the school year) 
(see Sec.  302-6.16 regarding concurrent TQSE).


Sec.  302-6.12  How soon may I/we begin occupying temporary quarters at 
Government expense?

    You may begin occupying temporary quarters at Government expense 
after your agency has authorized you to receive a TQSE allowance and 
you have signed a service agreement.


Sec.  302-6.13  What is the latest period for which TQSE reimbursement 
may begin?

    The period must begin before the maximum time for completing all 
aspects of your relocation under Sec.  302-2.9.


Sec.  302-6.14  When does my authorized period for TQSE reimbursement 
end?

    The period for TQSE reimbursement ends at midnight on either the 
day before you and/or any member of your immediate family occupies 
permanent residence quarters (even if some, but not all household goods 
have been delivered such that the residence is suitable for permanent 
occupancy), or the day your authorized period for TQSE reimbursement 
expires, whichever occurs first. (See Sec.  302-6.207 for details.)


Sec.  302-6.15  May I and/or my immediate family occupy temporary 
quarters longer than the period for which I am authorized to claim TQSE 
reimbursement?

    Yes, but you will not be reimbursed for any of the expenses you 
incur during the unauthorized period.


Sec.  302-6.16  May the period for which I am authorized to claim TQSE 
reimbursement for myself be different from that of my immediate family?

    No, the eligibility period for which you are authorized to claim 
TQSE reimbursement for yourself and for each member of your immediate 
family must run concurrently.


Sec.  302-6.17  What effect do partial days of temporary quarters 
occupancy have on my authorized period for claiming TQSE reimbursement?

    Occupancy of temporary quarters is based on calendar days and 
partial days are counted as full days of TQSE. You may not receive 
reimbursement under both TQSE allowance and another subsistence 
expenses allowance within the same day, with one exception. If you 
claim TQSE reimbursement on the same day that official travel en route 
to your new official station ends, your per diem will be computed under 
applicable partial day rules, and you also may be reimbursed for actual 
TQSE you incur after 6 p.m. of that day.


Sec.  302-6.18  How is my TQSE allowance affected if my temporary 
quarters become my permanent residence quarters?

    If your temporary quarters become your permanent residence 
quarters, you may receive a TQSE allowance only if you show in a manner 
satisfactory to your agency that you initially intended to occupy the 
quarters temporarily. You will not be entitled to TQSE once your agency 
determines that your temporary quarters are your permanent residence. 
(See Sec.  302-6.207 for details.)


Sec.  302-6.19  May I receive a TQSE allowance if I am receiving 
another subsistence expenses allowance?

    No, unless your immediate family is claiming TQSE and you are 
performing separate official TDY travel, or you receive a cost-of-
living allowance payable under 5 U.S.C. 5941 in addition to a TQSE 
allowance. (See Sec.  302-6.17 for partial days for en route travel 
days.)


Sec.  302-6.20  May I be reimbursed for transportation expenses 
incurred while I am occupying temporary quarters?

    Transportation expenses incurred in the vicinity of the temporary 
quarters, such as rental car or mileage for commuting to/from work, 
parking, and bus or mass transit, etc., are not TQSE expenses, and 
therefore, there is no authority to pay such expenses under TQSE.


Sec.  302-6.21  May I be reimbursed for TQSE while occupying my 
permanent residence quarters at my old official station?

    Your agency may authorize TQSE for a reasonable time when your 
residence at your old official station becomes temporary and no longer 
suitable for permanent residence (e.g., household goods have been 
shipped and are unavailable to you and your immediate family).


Sec.  302-6.22  What methods may my agency use to reimburse me for 
TQSE?

    (a) Your agency may use one of the following TQSE methods:
    (1) TQSE--Lodgings-Plus (TQSE-LP);
    (2) TQSE--Actual Expense (TQSE-AE); or
    (3) TQSE--Lump Sum (TQSE-LS).
    (b) Your agency will reimburse you for TQSE under the ``lodgings-
plus'' method unless it offers you one or more of the alternate 
methods. If your agency makes multiple methods available to you, you 
may select the one you prefer; however, once your travel has begun, the 
authorized TQSE method may not be changed.


Sec.  302-6.23  What is the ``applicable per diem rate'' under the TQSE 
reimbursement methods?

    The ``applicable per diem rate'' is the rate in effect for the 
locality at the old or new official station or combination thereof, 
wherever temporary quarters will be occupied. The applicable per diem 
rate could be the standard CONUS, CONUS non-standard area (NSA), or 
OCONUS non-foreign locality per diem rate as determined by GSA or the 
Department of Defense.


Sec.  302-6.24  How may my TQSE reimbursement be affected if I relocate 
to, or currently occupy, temporary quarters in a Presidentially-
Declared Disaster area?

    Your agency should consider delaying all non-essential relocations 
to Presidentially-Declared Disaster areas because the ability to secure 
temporary quarters lodgings in those areas may be

[[Page 37981]]

compromised. If relocation cannot be delayed, or if you are already 
occupying temporary quarters that have been affected by the disaster in 
a Presidentially-Declared Disaster area, for temporary quarters located 
within CONUS your agency may:
    (a) Authorize you to occupy temporary quarters outside of the 
proximity requirements at Sec.  302-6.10; and
    (b) Authorize TQSE at the applicable locality per diem allowance 
under FTR Sec. Sec.  301-11.100 through 301-11.102 of this subtitle or 
authorize actual expenses on an individual basis under FTR Sec. Sec.  
301-11.300 through 301-11.306 of this subtitle not to exceed 300 
percent of the applicable per diem in accordance with Sec.  301-11.303 
of this subtitle; or
    (c) Issue a blanket actual expense authorization for official 
relocation travel performed on or after the date of the Presidentially-
Declared Disaster.
    (d) The authorizations in paragraphs (a), (b), and (c) of this 
section must apply to a specific Presidential Disaster Declaration, and 
must end on the expiration date of the Declaration, or one year from 
the date the Declaration is issued, whichever is sooner. The maximum 
limit of 120 consecutive days that TQSE may be authorized is 
statutorily based and remains in effect in accordance with FTR Sec.  
302-6.29(a). A blanket authorization issued under this section shall 
not apply to any travel performed pursuant to chapter 301 of this 
subtitle and does not permit an agency to change the TQSE method 
authorized once the travel has begun. See Sec.  302-6.22(b).


Sec.  302-6.25  Must I document my TQSE to receive reimbursement?

    (a) TQSE-LP method. You must file a voucher and provide 
documentation for your temporary quarters lodging expenses, lodging 
taxes, and other subsistence expenses over $75. There is no requirement 
to document meals and incidental expenses.
    (b) TQSE-AE method. You must file a voucher and document all 
temporary quarters lodging, lodging taxes, meals, and other subsistence 
expenses over $75.
    (c) TQSE-LS method. You are not required to document your 
subsistence expenses or file a voucher. However, your agency will 
require you to sign a statement or other document, and provide proof 
that you actually occupied temporary quarters, even if not for the full 
length of time on which the lump sum calculation was based. In the 
absence of sufficient proof of temporary quarters occupancy, your 
agency may demand repayment of the TQSE-LS payment in accordance with 
Sec.  302-6.205.


Sec.  302-6.26  May I receive an advance of funds for TQSE?

    (a) TQSE-LP and TQSE-AE methods. You may receive an advance of 
funds if authorized in accordance with your agency policy and Sec.  
302-2.24 of this chapter. Your agency may advance the amount of funds 
necessary to cover your estimated TQSE expenses for up to 30 days. Your 
agency may subsequently advance additional funds for periods up to 30 
days.
    (b) TQSE-LS method. You will not receive an advance of funds as 
your agency will offer a one-time lump sum payment as close as is 
reasonably possible to the time you will begin occupancy of temporary 
quarters; no additional payments will be authorized. If your TQSE-LS 
payment is more than adequate to cover your actual TQSE expenses, any 
balance belongs to you (e.g., your agency authorizes and you accept a 
lump sum payment for 15 days of TQSE and you vacate temporary quarters 
after 10 days, you would retain the remaining balance for the 5 days of 
TQSE not incurred).


Sec.  302-6.27  Must I use a Government contractor-issued travel charge 
card for TQSE?

    Yes, you must use the Government contractor-issued travel charge 
card as the method of payment for all official relocation expenses, 
including TQSE, unless exempted under part 301-51 of this subtitle.


Sec.  302-6.28  Are temporary quarters lodging taxes and laundry/dry 
cleaning expenses included in the TQSE amount?

    Temporary quarters lodging taxes are not included in your daily 
temporary quarters lodging rate and may be documented as a separate 
TQSE-LP or TQSE-AE miscellaneous expense. Lodging taxes for TQSE-LS are 
included in your overall lump sum amount. Laundry/dry cleaning expenses 
are included in your incidental portion of the daily M&IE allowance and 
are not separately reimbursed.


Sec.  302-6.29  How long may I be authorized to claim TQSE 
reimbursement?

    (a) TQSE-LP and TQSE-AE methods. Your agency may initially 
authorize you to claim expenses in increments of 30 days or less, not 
to exceed 60 consecutive days. Your agency may authorize an extension 
of up to 60 additional consecutive days, for a maximum total of 120 
consecutive days, if your agency determines that there is a compelling 
reason for you to continue occupying temporary quarters.
    (b) TQSE-LS method. If your agency offers, and you select TQSE-LS, 
your agency may authorize a lump sum for each day authorized up to a 
maximum of 30 consecutive days of TQSE; no extensions are allowed under 
the lump sum payment method. You will not receive additional TQSE 
reimbursement if the lump sum payment is not adequate to cover your 
actual TQSE.


Sec.  302-6.30  May my agency reduce my authorized number of TQSE days 
if I am authorized a househunting trip?

    Your agency may reduce the total number of days you are authorized 
for TQSE by the number of househunting days (e.g., instead of 
authorizing 60 days of TQSE your agency can authorize 50 days to 
account for your 10-day househunting trip); however, the percentage 
multiplier used for calculating TQSE may not be reduced based on the 
number of days used for a househunting trip.


Sec.  302-6.31  What is a ``compelling reason'' warranting extension of 
my authorized period for claiming TQSE-LP or TQSE-AE reimbursement?

    A ``compelling reason'' is an event that is beyond your control and 
is acceptable to your agency. Examples include, but are not limited to:
    (a) Delivery of your household goods to your new residence is 
delayed due to availability of service providers, pandemics, strikes, 
customs clearance, hazardous weather, fires, floods or other acts of 
God, or similar events.
    (b) You cannot occupy your new permanent residence because of 
unanticipated problems (e.g., delay in settlement on the new residence, 
or short-term delay in construction of the residence).
    (c) You are unable to locate a permanent residence that is adequate 
for your family's needs because of housing conditions at your new 
official station.
    (d) Sudden illness, injury, your death or the death of your 
immediate family member.


Sec.  302-6.32  May I interrupt occupancy of temporary quarters?

    Yes, your authorized period for claiming TQSE-LP and TQSE-AE 
reimbursement is measured on consecutive days, and once begun, normally 
continues to run whether or not you continue to occupy temporary 
quarters. However, you may interrupt your authorized period for 
claiming reimbursement in the following instances:

[[Page 37982]]

    (a) For the time allowed for official travel en route between the 
old and new official stations;
    (b) For circumstances attributable to official necessity such as an 
intervening temporary duty assignment or military duty; or
    (c) For a non-official necessary interruption such as 
hospitalization, approved sick leave, or other reasons beyond your 
control and acceptable to your agency.

Subpart B--TQSE Methods of Reimbursement


Sec.  302-6.100  What am I paid under the TQSE-LP reimbursement method?

    Your agency will pay your actual daily temporary quarters lodging 
cost and a daily M&IE allowance not to exceed the single maximum 
lodging amount and the single maximum M&IE amount for the applicable 
per diem rate (see Sec.  302-6.23) for the locality at the old or new 
official station or combination thereof, wherever temporary quarters 
will be occupied. Your TQSE expenses must be reasonable and if expenses 
exceed the maximum allowable amount, you will not be reimbursed for 
more than the maximum allowable amount. The ``maximum allowable 
amount'' is the ``maximum daily amount'' multiplied by the number of 
days you actually incur TQSE not to exceed the number of days 
authorized, taking into account that the rates change after 30 days in 
temporary quarters. The ``maximum daily amount'' (see Note 1 to Sec.  
302-6.100) is determined by adding the rates for you and each member of 
your immediate family authorized to occupy temporary quarters:
    (a) For the first 30 days of temporary quarters:
    (1) You and/or your unaccompanied spouse or domestic partner (see 
Note 2 to Sec.  302-6.100) may receive 100 percent of the temporary 
quarters lodging portion of the applicable per diem rate and 100 
percent of the M&IE portion of the applicable per diem rate.
    (2) Your accompanied spouse, domestic partner, or a member of your 
immediate family who is age 12 or older may receive 50 percent of the 
temporary quarters lodging portion of the applicable per diem rate and 
50 percent of the M&IE portion of the applicable per diem rate.
    (3) A member of your immediate family who is under age 12 may 
receive 40 percent of the temporary quarters lodging portion of the 
applicable per diem rate and 40 percent of the M&IE portion of the 
applicable per diem rate.
    (b) For the second 30 days of temporary quarters:
    (1) You and/or your unaccompanied spouse or domestic partner (see 
Note 2 to Sec.  302-6.100) may receive 75 percent of the temporary 
quarters lodging portion of the applicable per diem rate and 75 percent 
of the M&IE portion of the applicable per diem rate.
    (2) Your accompanied spouse, domestic partner, or a member of your 
immediate family who is age 12 or older may receive 45 percent of the 
temporary quarters lodging portion of the applicable per diem rate and 
45 percent of the M&IE portion of the applicable per diem rate.
    (3) A member of your immediate family who is under age 12 may 
receive 35 percent of the temporary quarters lodging portion of the 
applicable per diem rate and 35 percent of the M&IE portion of the 
applicable per diem rate.
    (c) For any additional authorized days of temporary quarters:
    (1) You and/or your unaccompanied spouse or domestic partner (see 
Note 2 to Sec.  302-6.100) may receive 55 percent of the temporary 
quarters lodging portion of the applicable per diem rate and 55 percent 
of the M&IE portion of the applicable per diem rate.
    (2) Your accompanied spouse, domestic partner, or a member of your 
immediate family who is age 12 or older may receive 40 percent of the 
temporary quarters lodging portion of the applicable per diem rate and 
40 percent of the M&IE portion of the applicable per diem rate.
    (3) A member of your immediate family who is under age 12 may 
receive 30 percent of the temporary quarters lodging portion of the 
applicable per diem rate and 30 percent of the M&IE portion of the 
applicable per diem rate.

    Note 1 to Sec.  302-6.100. Temporary quarters lodging and M&IE 
remain as separate maximum amounts for purposes of calculating TQSE-
LP. Examples of TQSE calculations are published in an FTR bulletin 
at https://gsa.gov/ftrbulletins.


    Note 2 to Sec.  302-6.100. That is, when your spouse or domestic 
partner necessarily occupies temporary quarters in lieu of yourself 
or in a location separate from you.

Sec.  302-6.101  What am I paid under the TQSE-AE reimbursement method?

    Your agency will pay your actual TQSE incurred, provided the 
expenses are reasonable and if expenses exceed the maximum allowable 
amount, you will not be reimbursed for more than the maximum allowable 
amount. The ``maximum allowable amount'' is the ``maximum daily 
amount'' multiplied by the number of days you actually incur TQSE not 
to exceed the number of days authorized, taking into account that the 
rates change after 30 days in temporary quarters. The ``maximum daily 
amount'' (see Note 1 to Sec.  302-6.101) is determined by using the 
applicable per diem rate (see Sec.  302-6.23) for the locality at the 
old or new official station or combination thereof, wherever temporary 
quarters will be occupied, and adding the rates for you and each member 
of your immediate family authorized to occupy temporary quarters:
    (a) For the first 30 days of temporary quarters:
    (1) You and/or your unaccompanied spouse or domestic partner (see 
Note 2 to Sec.  302-6.101) may receive 100 percent of the applicable 
per diem rate.
    (2) Your accompanied spouse, domestic partner, or a member of your 
immediate family who is age 12 or older may receive 50 percent of the 
applicable per diem rate.
    (3) A member of your immediate family who is under age 12 may 
receive 40 percent of the applicable per diem rate.
    (b) For the second 30 days of temporary quarters:
    (1) You and/or your unaccompanied spouse or domestic partner (see 
Note 2 to Sec.  302-6.101) may receive 75 percent of the applicable per 
diem rate.
    (2) Your accompanied spouse, domestic partner, or a member of your 
immediate family who is age 12 or older may receive 45 percent of the 
applicable per diem rate.
    (3) A member of your immediate family who is under age 12 may 
receive 35 percent of the applicable per diem rate.
    (c) For any additional days of temporary quarters:
    (1) You and/or your unaccompanied spouse or domestic partner (see 
Note 2 to Sec.  302-6.101) may receive 55 percent of the applicable per 
diem rate.
    (2) Your accompanied spouse, domestic partner, or a member of your 
immediate family who is age 12 or older may receive 40 percent of the 
applicable per diem rate.
    (3) A member of your immediate family who is under age 12 may 
receive 30 percent of the applicable per diem rate.

    Note 1 to Sec.  302-6.101. Under TQSE-AE, separate amounts for 
temporary quarters lodging and M&IE may be combined to produce a 
single maximum daily amount to allow some of the M&IE rate to offset 
the lodging cost. Examples of TQSE calculations are published in an 
FTR bulletin at https://gsa.gov/ftrbulletins.


    Note 2 to Sec.  302-6.101. That is, when your spouse or domestic 
partner necessarily

[[Page 37983]]

occupies temporary quarters in lieu of yourself or in a location 
separate from you.

Sec.  302-6.102  What am I paid under the TQSE-LS reimbursement method?

    (a) For you or your unaccompanied spouse or domestic partner (see 
Note 1 to Sec.  302-6.102), if you are receiving a lump sum for TQSE, 
multiply the number of days (up to 30 days) your agency authorizes 
TQSE-LS by 75 percent of the applicable per diem rate (see Sec.  302-
6.23) for the locality at the old or new official station or 
combination thereof, wherever temporary quarters will be occupied.
    (b) For each member of your immediate family (excluding your 
unaccompanied spouse or domestic partner), multiply the same number of 
days by 25 percent of the same per diem rate, as referenced in 
paragraph (a) of this section.
    (c) Your lump sum payment will be the sum of the calculations in 
paragraphs (a) and (b) of this section.

    Note 1 to Sec.  302-6.102.  That is, when your spouse or 
domestic partner necessarily occupies temporary quarters in lieu of 
yourself or in a location separate from you. Examples of TQSE 
calculations are published in an FTR bulletin at https://gsa.gov/ftrbulletins.

Sec.  302-6.103  May my agency reduce my TQSE allowance below the 
``maximum allowable amount''?

    Yes, if the estimated daily amount of your TQSE is determined in 
advance to be lower than the maximum daily amount, your agency may 
reduce the maximum allowable amount to your expected expenses provided 
the new applicable amount is annotated on the relocation authorization 
before you occupy temporary quarters. However, see Sec.  302-6.30 
regarding househunting trips.

Subpart C--Agency Responsibilities

    Note 1 to subpart C.  Use of pronouns ``we'', ``you'', and their 
variants throughout this subpart refers to the agency.

Sec.  302-6.200  How should we administer the TQSE allowance?

    Temporary quarters should be authorized only if, and only for as 
long as necessary until the employee and the employee's immediate 
family can move into permanent residence quarters. You must administer 
the TQSE allowance to minimize or avoid other relocation expenses.


Sec.  302-6.201  What governing policies must we establish for the TQSE 
allowance?

    You must establish policies and procedures governing:
    (a) When you will authorize temporary quarters for employees;
    (b) Who will determine if temporary quarters is appropriate in each 
situation;
    (c) What method of TQSE will be authorized;
    (d) Who will determine the appropriate period of time for which 
TQSE reimbursement will be authorized, including approval of extensions 
and interruptions of temporary quarters occupancy;
    (e) Who will determine whether quarters were indeed temporary; and
    (f) Who will determine, and in what instances, to issue the 
authorizations at Sec.  302-6.24, including a blanket authorization for 
actual expenses.


Sec.  302-6.202  Under what circumstances may we authorize the TQSE 
allowance?

    You may authorize a TQSE allowance on an individual-case basis when 
use of temporary quarters is justified in connection with an employee's 
transfer to a new official station, including upon assignment to a 
temporary official station and permanent assignment to a temporary 
official station. You may not authorize a TQSE allowance for vacation 
purposes or other reasons unrelated to the transfer.


Sec.  302-6.203  What factors should we consider in determining whether 
the TQSE allowance is actually necessary?

    The factors you should consider include:
    (a) The length of time the employee should reasonably be expected 
to occupy their residence at the old official station before reporting 
for duty at the new official station. An employee and the employee's 
immediate family should continue to occupy the residence at the old 
official station for as long as practicable to avoid the necessity for 
temporary quarters.
    (b) The existence of less expensive alternatives. If a less 
expensive alternative to the TQSE allowance exists that will enable the 
employee to find permanent quarters at the new official station, you 
should consider such an alternative. For example, authorize a 
househunting trip instead of temporary quarters if it would cost less 
overall.
    (c) The existence of other opportunities to arrange for permanent 
quarters. Consider whether the employee had adequate opportunity to 
arrange for permanent quarters. For example, you should not authorize 
temporary quarters if the employee had adequate opportunity during an 
extended temporary duty assignment or long-term temporary change of 
station that became permanent, to arrange for permanent quarters.


Sec.  302-6.204  What factors should we consider in determining what 
TQSE method(s) to offer an employee?

    When determining what TQSE method(s) to offer an employee the 
following factors should be considered:
    (a) Ease of administration. You should consider the administrative 
requirements for each method of TQSE. Factors such as obtaining and 
reviewing receipts to verify validity, accuracy, and reasonableness of 
each expense carry an administrative burden to the employee, their 
immediate family, and you.
    (b) Cost consideration. You should weigh the cost of each 
alternative. TQSE-LP and TQSE-AE reimbursement may extend up to 120 
days, while the TQSE-LS payment is limited to a maximum of 30 days.
    (c) Treatment of employee. The employee will be reimbursed for TQSE 
under the ``lodgings-plus'' method unless you offer one or more of the 
alternate methods. If you make all methods available to the employee, 
the employee is allowed to select any one of the methods. You should 
therefore consider employee morale and productivity against actual cost 
in determining which method(s) to offer.


Sec.  302-6.205  Must we require transferees to sign a statement that 
TQSE will be incurred?

    (a) Transferees authorized TQSE-LP or TQSE-AE are not required to 
sign a statement asserting that they will occupy temporary quarters 
since they must document temporary quarters lodging expenses.
    (b) Transferees electing the TQSE-LS payment option if offered by 
you, must sign a statement, which should be included as part of the 
service agreement, asserting that they will occupy temporary quarters 
and will incur TQSE. If a lump sum amount was paid, and if no TQSE are 
incurred, the transferee must return all monies received for the TQSE-
LS payment to the agency.


Sec.  302-6.206  When must we make the TQSE-LS payment to the 
transferee?

    You must pay the transferee the TQSE-LS payment before the 
occupancy of temporary quarters begins. You should make the TQSE-LS 
payment as close as is reasonably possible to the time that the 
transferee will begin occupancy of temporary quarters.


Sec.  302-6.207  What factors should we consider in determining whether 
quarters are temporary?

    In determining whether quarters are ``temporary'', you should 
consider factors such as reasonable time when

[[Page 37984]]

the employee's residence at the old official station becomes temporary 
and no longer suitable for permanent residence (e.g., household goods 
have been shipped and are unavailable to the employee and their 
immediate family), the duration of the lease, movement of household 
goods into the quarters, the type of quarters, the employee's 
expressions of intent, attempts to secure a permanent dwelling, and the 
length of time the employee occupies the quarters.

PART 302-17--TAXES ON RELOCATION EXPENSES

0
4. The authority for part 302-17 continues to read as follows:

    Authority: 5 U.S.C. 5724b; 5 U.S.C. 5738; E.O. 11609, as 
amended, 3 CFR, 1971-1975 Comp., p. 586.


Sec.  302-17.21  [Amended]

0
5. Amend Sec.  302-17.21(d) by removing ``actual expense or lump sum 
method'' in the second sentence and adding in its place ``lodgings-
plus, actual expense, or lump sum method''.

[FR Doc. 2024-09485 Filed 5-6-24; 8:45 am]
BILLING CODE 6820-14-P