2025-02986NoticeWallet

Late Payments Get 4.625% Interest: Government's Thank-You Rate

Published Date: 2/25/2025

Notice

Summary

Starting January 1, 2025, through June 30, 2025, the interest rate for late government payments is set at 4.625% per year. This means if the government pays contractors late, they owe this extra money. Contractors and agencies should note this rate to keep payments fair and on time!

Analyzed Economic Effects

1 provisions identified: 1 benefits, 0 costs, 0 mixed.

4.625% Interest for Late Payments

If you are a contractor paid by the federal government, then for payments late between January 1, 2025 and June 30, 2025 the government owes interest at 4.625% per year (4 5/8% per annum). This rate applies to late government payments under the prompt payment rules during that period.

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Key Dates

Effective Date
Published Date
1/1/2025
2/25/2025

Department and Agencies

Department
Independent Agency
Agency
Treasury Department
Bureau of the Fiscal Service
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