Government Contracts Monitor

Short Takes: Treasury Raises the Prompt Payment Act Interest Rate

January 13, 2014

On Friday January, 3, 2014, the Treasury Department announced that it is raising the Prompt Payment Act interest rate to 2.125% per annum for the period of January 1, 2014, and ending on June 30, 2014.  79 Fed. Reg. 424.  The prior interest rate was set at 1.75%.  The interest rate has not been over 2% since the second half of 2011, when the rate was 2.5%. 

Michael J. Schrier is the attorney responsible for the content of this article.