Prompt Payment Interest Rate; Contract Disputes Act
Published Date: 2/3/2026
Notice
Summary
Starting January 1, 2026, government agencies must pay a 4.125% interest penalty if they’re late paying businesses for goods or services. This rate applies through June 30, 2026, making sure businesses get fair compensation for delays. If you work with the government, keep an eye on this to avoid extra costs!
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Key Dates
Department and Agencies
Related Federal Register Documents
2026-16726, Extension of a Currently Approved Information Collection: Authorization Agreement for Preauthorized Payment (SF 5510)
The Department of the Treasury, as part of its continuing effort to reduce paperwork and respondent burden, invites the general public and other Federal agencies to take this opportunity to comment on proposed and/or continuing information collections, as required by the Paperwork Reduction Act of 1995. Currently the Bureau of the Fiscal Service within the Department of the Treasury is soliciting comments concerning the Standard Form 5510, "Authorization Agreement for Preauthorized Payment".
2026-16725, Extension of a Currently Approved Information Collection: Annual Financial Statement of Surety Companies-Schedule F
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Starting July 1, 2026, the interest rate for late payments to businesses by government agencies is set at 4.75% per year until December 31, 2026. This means if the government pays late for goods or services, they owe extra money based on this rate. Businesses get paid interest automatically, even if they don’t ask for it, so everyone knows when and how much extra cash is due.
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