DATE: March 21, 2008
REAFFIRMED: January 19, 2017
SUBJECT: First-Class and Business-Class Travel
1. PURPOSE. This Directive establishes policy and responsibilities for the approval of first-class and business-class transportation accommodations, in accordance with 41 CFR (Code of Federal Regulations) Parts 300, 301 and 304 and White House and Office of Management and Budget (OMB) guidance on perquisites. The authority of the Inspector(s) General is set forth in Section 3 of the Inspector General Act and the Internal Revenue Service Restructuring and Reform Act, and defined in Treasury Order 114-01 (OIG) and Treasury Order 115-01 (TIGTA), or successor orders. The provisions of this directive shall not be construed to interfere with that authority.
a. This Directive applies to all bureaus, Departmental Offices (DO), Office of Inspector General (OIG), and Treasury Inspector General for Tax Administration (TIGTA) for travel by employees of the Department when they travel in support of Departmental programs, including programs funded from sources other than appropriations, e.g., fees or assessments. It also applies to travel paid by a non-Federal source pursuant to FTR Chapter 304 (41 CFR Part 304), and to travel by persons other than employees whose travel is on an invitational basis and paid by the Department.
b. Neither this Directive nor the restrictions on first-class and business-class travel applies to travel:
1) for which an employee is reimbursed by certain tax exempt organizations or a state, county, or municipality, incident to attendance at meetings, pursuant to 5 U.S.C. 4111;
2) which is accepted by an employee pursuant to 5 U.S.C. 7342, concerning foreign gifts and decorations; or
3) for a partisan purpose in the case of an employee who is exempt from the statutory prohibitions on partisan political activity, and the travel is not paid with government funds.
a. The terms coach-class, business-class, and first-class are defined in the Federal Travel Regulation (FTR) Chapter 301 (41 CFR 301).
b. “Bureaus" include DO, OIG, and TIGTA. With respect to DO, the Deputy Assistant Secretary for Management and Budget, or the equivalent position, is the "head of the bureau" within the meaning of this directive.
4. FIRST-CLASS TRAVEL ACCOMMODATIONS. It is the policy of the Department of the Treasury that:
a. Prior authorization by the Bureau Head is required for each instance of first-class travel. This authority may not be redelegated. A principal deputy or equivalent must approve use of first-class travel performed by the Bureau Head, as self-approval is not permitted.
b. First-class travel shall not be authorized, unless:
1) coach-class or business-class is not reasonably available. Reasonably available means available on an airline that is scheduled to leave within 24 hours of the travelers proposed departure time, or scheduled to arrive within 24 hours of the travelers proposed arrival time;
2) it is necessary to accommodate a disability or other special need. A disability must be substantiated in writing by a competent medical authority and be current within one year prior to travel. If the traveler is authorized to be accompanied by an attendant, then the attendant may be authorized to use first-class accommodations if the attendant’s services are required en route;
3) exceptional security circumstances exist. Exceptional security circumstances may include, but are not limited to:
a) Use of a lower class of accommodations would endanger the traveler’s life or Government property;
b) The traveler is an agent on protective detail and is accompanying a traveler authorized to use first-class accommodations;
c) The traveler is a courier or control officer accompanying controlled pouches or packages;
4) it is required because of the mission;
5) for train accommodations, foreign coach-class is inadequate (e.g. does not provide adequate sanitation or health standards); or
6) for ship accommodations, lowest first-class is not available.
c. First-class travel shall not be authorized for permanent change of stations unless it meets the requirements in paragraph 4b.
d. Upgrades to first-class airline accommodations may be made at personal expense, including redemption of frequent flyer benefits. This does not require approval.
5. BUSINESS-CLASS TRAVEL ACCOMMODATIONS. It is the policy of the Department of the Treasury that:
a. Prior authorization by the Bureau Head is required for each instance of business-class travel. This authority may be redelegated to a principal or other deputy, at the highest level, familiar with the rules and policies of Federal travel. A principal deputy or equivalent must approve use of business-class travel performed by a Bureau Head, as self-approval is not permitted.
b. Business-class shall not be authorized unless:
1) regularly scheduled flights between origin/destination points (including connecting points) provide only first-class and business-class accommodations;
2) space is not available in coach-class accommodations in time to accomplish the mission, which is urgent and cannot be postponed;
3) it is necessary to accommodate a disability or other special need. Disability must be substantiated in writing by a competent medical authority and be current within one year prior to travel. If the traveler is authorized to be accompanied by an attendant, then the attendant may be authorized to use business-class accommodations if the attendant’s services are required en route;
4) security purposes or exceptional circumstances exist that make the use of business-class accommodations essential to the successful performance of the mission;
5) coach-class accommodations on an authorized/approved foreign air carrier do not provide adequate sanitation or health standards;
6) the use results in an overall cost savings to the Government by avoiding additional subsistence costs, overtime, or lost productive time while awaiting coach-class accommodations;
7) the origin and/or destination are outside the continental United States (OCONUS), and the scheduled flight time, including stopovers and change of planes, is in excess of 14 hours. In this instance you will not be eligible for a rest stop en route or a rest period upon arrival at your duty site (a rest stop or rest period is defined as a full night of sleep); or
8) it is required because of the mission.
c. Approval of business-class by a non-Federal source shall be in accordance with FTR 304 (41 CFR Part 304). Further, in situations where the business-class travel accommodations are provided by a non-Federal source on a reimbursement, rather than an in-kind basis, the use of business-class must be justified independently and in accordance with the criteria in FTR 301-10 (41 CFR Part 301-10).
d. Business-class travel shall not be authorized for permanent change of stations unless it meets the requirements in paragraph 5b.
e. Upgrades to business-class airline accommodations may be made at personal expense, including redemption of frequent flyer benefits. This does not require approval.
6. RESPONSIBILITIES. The Bureaus shall:
a. Use Treasury Department Form (TD F) 70-02.6, "First-Class and Business-Class Travel Request and Authorization," for internal review and approval. The bureaus may develop individual forms for use as long as the elements in TD F 70-02.6 are included.
b. Submit an annual report of all approved first-class and business-class travel that occurred during the previous fiscal year to the Departmental Deputy Chief Financial Officers (DCFO) Office, Office of Accounting and Internal Control (AIC) for consolidation in a Departmentwide report that is submitted to the General Services Administration. Bureaus will be notified by the Departmental DCFO’s office of the data required to be submitted and report due date.
a. OMB Bulletin 93-11, "Fiscal Responsibility and Reducing Perquisites," dated April 19, 1993.
b. FTR Chapter 300-70 (41 CFR Part 300-70) "Agency Reporting Requirements," Chapter 301-10 (41 CFR Part 301-10) "Transportation Expenses," and Chapter 304 (41 CFR Part 304), "Payment of Travel Expenses from a Non-Federal Source."
c. 5 U.S.C. 4111, "Acceptance of Contributions, Awards, and Other Payments."
d. 5 U.S.C. 7342, "Receipt and Disposition of Foreign Gifts and Decorations."
e. 5 U.S.C. Appendix, "Inspector General Act of 1978, as amended."
8. CANCELLATION. Treasury Directive 74-13, "Premium-Class Travel," dated, January 19, 2001, is superseded.
9. OFFICES OF PRIMARY INTEREST. Office of Accounting and Internal Control, Office of the Deputy Chief Financial Officer, Office of the Assistant Secretary for Management and Chief Financial Officer.
Peter B. McCarthy
Assistant Secretary for Management
and Chief Financial Officer