IGF GARS Charge Explained: Why It Ended and What Agreement #5 Covers

The GARS charge on a rental car receipt is the Government Administrative Rate Supplement, a flat $5-per-day fee that rental companies collected on vehicles rented under the U.S. Government Rental Car Program. It applied to federal employees and military personnel renting on official travel orders. As of April 1, 2024, GARS has been eliminated under U.S. Government Rental Car Agreement #5, so new rentals under the program no longer carry the fee.¹

What the GARS Fee Was

GARS stood for Government Administrative Rate Supplement. It was a flat $5.00 daily surcharge, or the foreign currency equivalent outside the United States, that rental companies were authorized to collect on every government rental transaction worldwide. The charge appeared as a separate line on both the rental contract issued at pickup and the final receipt, sometimes abbreviated as “GA.”²

The fee was mandatory. Agreement #4, which governed the program before April 2024, stated that “GARS will be paid by all authorized personnel renting vehicles under this Agreement,” and individual travelers could not waive it. The stated purpose was to offset costs that rental companies described as peculiar to government business: applying the agreement’s terms worldwide, renting to employees under age 25, accepting additional authorized drivers at no extra charge, and holding published maximum rates for at least 60 days.²

Why GARS Ended

U.S. Government Rental Car Agreement #5 took effect on April 1, 2024, and removed the GARS fee entirely. The Defense Travel Management Office described the elimination as a cost avoidance measure for government travel. The same agreement also cut maximum allowable rental rates within the Continental United States by 30%.¹³

If You Still See GARS on a Receipt

Reservations booked before April 1, 2024 remained under Agreement #4, so GARS can legitimately appear on older rentals and is reimbursable as a travel expense. For any rental booked on or after that date under the government program, the charge should not appear. If it does, confirm that your department or agency name is listed on the rental agreement, because that is the signal that Agreement #5 pricing applies. Travelers are also required to book through authorized channels, including the Defense Travel System, E-gov Travel Services, ConcurGov, or a contracted Travel Management Company.³¹

One boundary worth flagging: GARS only ever applied to rentals made under the U.S. Government Rental Car Program. A $5 daily line item on a personal, leisure, or corporate rental is not GARS, even if a receipt uses a similar abbreviation, and the end of the government program’s fee has no effect on commercial rental pricing.

What Agreement #5 Includes Without the Fee

The benefits that the government and rental industry once pointed to as justification for GARS are still built into the program. Under Agreement #5, government travelers receive the following at no additional cost:

Collision Damage Waiver and Loss Damage Waiver cannot be sold or charged for.
Liability coverage is included up to $25,000 for property damage, $100,000 per person, and $300,000 per incident.⁴
Unlimited mileage on all rentals except one-way trips.
No underage driver fee for travelers 21 and older; drivers aged 18 to 20 may be charged, but the fee is reimbursable.
Authorized additional drivers, including a spouse or domestic partner on official orders, at no charge.
No blackout dates and no minimum rental periods.
A guaranteed upgrade at no extra cost if the reserved vehicle class is unavailable.⁵

Some separate charges are still allowed on a government rental, including one-way mileage, delivery and collection, drop-off, state and local taxes, airport concession fees, and winterization. Energy recovery fees and any fees not specifically named in the agreement are prohibited unless the Defense Travel Management Office has given written approval. If you see an unfamiliar line item on a current government rental, that list is the right place to check it against.⁵

1
U.S. Department of Defense – Travel. Rental Car Agreement 5 Effective April 1, 2024
2
U.S. Department of Defense. U.S. Government Rental Car Agreement Number 4
3
National Defense Transportation Association. Rental Car Agreement 5 Now in Effect
4
U.S. Department of Defense – Travel. Rental Car Program
5
U.S. Department of Defense. U.S. Government Rental Car Agreement 5