The Bureau of Reclamation has announced a new interest rate of 3.00% for fiscal year 2025, to be used by federal agencies in planning and evaluating water and land resources. This rate, which is higher than the previous year's rate of 2.75%, reflects changes based on the average yield of long-term U.S. Treasury securities. All government agencies must apply this rate for calculating future benefits and costs in such planning efforts. This change ensures consistency with federal rules that set limits on rate changes from year to year.
Simple Explanation
The government has decided that when they plan how to use water and land, they will use a new number, 3%, to help them figure out the costs and benefits. This number used to be 2.75%, and it helps them decide how much things will cost in the future.