The question of 'What is the food allowance for 2025?' has several answers, depending on who is asking and in what context. Allowances differ for federal employees on travel, for private sector workers using simplified tax methods, and for recipients of government assistance programs. Understanding the distinctions is key to proper expense reporting and financial planning.
Understanding the Federal Per Diem Rates for 2025
For official federal travel within the Continental United States (CONUS), the General Services Administration (GSA) sets the per diem rates. These rates are a combination of a lodging allowance and a Meals & Incidental Expenses (M&IE) allowance. For the federal fiscal year 2025, which runs from October 1, 2024, to September 30, 2025, the standard CONUS M&IE rate is $68 per day. This represents a significant increase from the previous fiscal year's rate of $59, reflecting inflationary adjustments.
How GSA Rates are Applied
- Standard CONUS Rate: The $68 daily rate for M&IE applies to most locations within the US. The GSA website features a helpful lookup tool for specific cities.
- Non-Standard Areas (NSAs): In 2025, over 296 high-cost areas have higher M&IE rates, which can range up to $92 per day to account for elevated costs of living.
- First and Last Day Rule: For the day a traveler departs and returns, they are entitled to 75% of the applicable M&IE rate.
The IRS High-Low Substantiation Method for 2025
Private businesses and self-employed individuals can opt to use the simplified IRS high-low substantiation method for travel expenses. For the period spanning October 1, 2024, to September 30, 2025, the IRS has defined two tiers for M&IE allowances.
- High-Cost Localities: For travel to a designated high-cost area, the M&IE allowance is $86 per day.
- Other Localities: For all other areas within CONUS, the M&IE allowance is $74 per day.
This method simplifies expense tracking by eliminating the need to look up specific city-by-city rates for every trip, though it may result in slightly higher or lower reimbursement amounts compared to the GSA rates for some locations.
Examples of High-Cost Localities
Numerous cities qualify as high-cost localities, including New York City, San Francisco, Washington D.C., and many others. The IRS publishes a list annually detailing these locations and the periods for which they are considered high-cost.
2025 Food Allowance Comparison Table: Federal vs. IRS
| Allowance Type | Applies To | Daily M&IE Rate (Effective Oct 1, 2024) | Notes |
|---|---|---|---|
| GSA Standard | Federal Employees (most CONUS) | $68 | Standard rate for most US locations. |
| GSA Non-Standard | Federal Employees (high-cost areas) | $68 - $92 | Rate varies by specific high-cost location. |
| IRS High-Low (High) | Private Sector, Self-Employed | $86 | For travel to designated high-cost cities. |
| IRS High-Low (Low) | Private Sector, Self-Employed | $74 | For travel to all other US locations. |
SNAP Benefit Changes for Fiscal Year 2026 (Starting Oct 1, 2025)
For low-income households, the Supplemental Nutrition Assistance Program (SNAP) benefits provide crucial food assistance. SNAP benefits are adjusted annually on October 1st to account for changes in food costs and inflation. For the federal fiscal year 2026 (starting October 1, 2025), the maximum benefit amounts are increasing slightly.
New Maximum Monthly Benefits (FY2026):
- 1 person: $298 (up from $292)
- 2 people: $546 (up from $536)
- 3 people: $785 (up from $768)
- 4 people: $994 (up from $975)
Standard deductions and income limits for determining eligibility are also increasing, which can affect a household's net income calculation and potential benefit amount.
Food Allowance for Remote Workers in 2025
The eligibility for a food allowance for remote workers varies by company policy and location. Unlike business travel, where per diem rates are common, a food allowance for remote work is not federally mandated in the US. However, in some other countries, regulations may apply. In Portugal, for instance, a 2025 meal card exemption was increased, and remote workers are still entitled to the allowance if it's stipulated in their contract. For US-based remote workers, any such benefit is determined by the employer's discretion or employment agreement.
How to Determine the Correct Food Allowance
When a food allowance is applicable, following the correct procedure is essential for proper reimbursement and tax compliance. This involves several steps:
- Identify the Purpose: Is the allowance for business travel, a government benefit, or a company-specific perk?
- Check the Governing Body: For US business travel, is your company using GSA rates or the IRS high-low method?
- Confirm the Location: For travel, a high-cost area will have a different rate than a standard one. For benefits, check the state and federal guidelines.
- Reference the Official Rates: Utilize the current rates published by the GSA or IRS for the relevant fiscal year. For government benefits, check the USDA or SNAP resources for the latest figures.
- Adhere to Documentation Rules: Using per diem rates simplifies paperwork, but records of the travel purpose, dates, and location are still required.
Conclusion: Navigating 2025 Food Allowances
The food allowance for 2025 is not a single, universal figure but a set of rates determined by context. The standard GSA M&IE rate for business travel is $68 per day, while the IRS offers a high-low option of $86 and $74, respectively. For low-income households, SNAP benefits are increasing slightly starting in October 2025. Understanding these different figures and the rules that govern them is vital for both businesses and individuals to ensure accurate financial planning and compliance. For official federal per diem rates by location, visit the GSA Per Diem Lookup tool.
