25 Feb 2025
💰Notice of Prompt Payment Interest Rate for Government Contracts
Prompt Payment Interest Rate; Contract Disputes Act
Summary
For the period beginning January 1, 2025, and ending on June 30, 2025, the prompt payment interest rate is 4\5/8\ per centum per annum.
Agencies
- Treasury Department
- Bureau of the Fiscal Service
Business Impact
$$ - Med
The notice of the prompt payment interest rate directly affects businesses' financial planning and cash flow management, as it mandates interest payments for late payments by government agencies. The specified interest rate of 4.625% impacts business concerns that may face delayed payments, reinforcing the importance of timely cash inflows.