2025-14441NoticeWallet

Uncle Sam’s Late Fee Rate Hits 4.625% for Contractors

Published Date: 7/31/2025

Notice

Summary

Starting July 1, 2025, through December 31, 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 interest. Contractors and agencies should note this rate to keep their money matters fair and square!

Analyzed Economic Effects

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

Prompt Payment Interest Rate Set

From July 1, 2025 through December 31, 2025, the interest rate for late U.S. government payments is 4.625% per year. If the government pays a contractor late during this period, the contractor is owed interest at that 4.625% annual rate.

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Key Dates

Effective Date
Published Date
7/1/2025
7/31/2025

Department and Agencies

Department
Independent Agency
Agency
Treasury Department
Bureau of the Fiscal Service
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