Type:Notice
Citation:90 FR 10678
Reading Time:about a minute or two
The Bureau of the Fiscal Service, Treasury Department has announced the prompt payment interest rate for the period from January 1, 2025, to June 30, 2025. The interest rate is set at 4 5/8 percent per year. This rate is used to calculate interest penalties owed by government agencies to businesses when they fail to pay for goods or services on time. The interest is calculated from the day after the payment was due until the payment is made.
Simple Explanation
The government says that if they are late paying for something they bought, they have to give a little extra money—a tip of 4.625% a year—to say sorry for being late. It's like when someone is late for a playdate and brings a cookie to make up for it!