Federal Debt Collection Interest Rate for 2026

Regs.gov: Fiscal Service

Published January 1st, 2026

Detected March 15th, 2026

Summary

The Department of the Treasury has published the interest rate for Federal debt collection for calendar year 2026, setting it at 4.00 percent. This rate is used for assessing interest charges on outstanding government debts and for evaluating cost-effectiveness of cash discounts.

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What changed

The Department of the Treasury has announced that the interest rate for Federal debt collection for the calendar year 2026 will be 4.00 percent. This rate, mandated by the Debt Collection Act of 1982, is used by government agencies to assess interest charges on debts owed to the government, evaluate the cost-effectiveness of cash discounts, and determine when to pay purchase card invoices when rebates are offered.

This notice serves as an informational update for government agencies regarding the applicable rate. No specific actions are required from regulated entities beyond awareness of the rate for debt collection and financial management purposes. The rate is determined annually based on investment rates set for Federal Cash Management systems.

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Content

ACTION:

Notice of rate to be used for Federal debt collection, and discount and rebate evaluation.

SUMMARY:

The Secretary of the Treasury is responsible for computing and publishing the percentage rate that is used in assessing interest
charges for outstanding debts owed to the Government (The Debt Collection Act of 1982, as amended). This rate is also used
by agencies as a comparison point in evaluating the cost-effectiveness of a cash discount. In addition, this rate is used
in determining when agencies should pay purchase card invoices when the card issuer offers a rebate. Notice is hereby given
that the applicable rate for calendar year 2026 is 4.00 percent.

DATES:

January 1, 2026, through December 31, 2026.

FOR FURTHER INFORMATION CONTACT:

Department of the Treasury, Bureau of the Fiscal Service, Disbursing and Debt Management, Alternative Payments Division, 3201
Pennsy Drive, Building E, Landover, MD 20785 (Telephone: 202-874-6224).

SUPPLEMENTARY INFORMATION:

The rate reflects the current value of funds to the Treasury for use in connection with Federal Cash Management systems and
is based on investment rates set for purposes of Public Law 95-147, 91 Stat. 1227 (October 28, 1977), as calculated by the
Department of the Treasury's Office of Debt Management. The annual Interest Rate Factors used in determining the Current Value
of Funds Rate are based on weekly average Fed funds less 25 basis points for the12-month period ending every September 30,
rounded to the nearest whole percentage, for applicability effective each January 1. Quarterly revisions are made if the annual
average, on a moving basis, changes by 2 percentage points. The rate for calendar year 2026 reflects the average investment
rates for the 12-month period that ended September 30, 2025.

(Authority: 31 U.S.C. 3717)

Linda Claire Chero, Assistant Commissioner, Disbursing & Debt Management and Chief Disbursing Officer. [FR Doc. 2025-24143 Filed 12-31-25; 8:45 am] BILLING CODE 4810-AS-P