Fedweek

The Pentagon has signaled its willingness to start providing a modified form of subsidies for its employees to use public transit and van pools in their commuting, signaling a potential breakthrough on the issue at the Defense Department. While numerous other agencies have been providing transit subsidies of up to $65 a month (the tax-free limit) for years, DoD has resisted giving subsidies to its civilian employees because there was no similar authority for military personnel. But in an announcement that could signal a thaw, workers at the Pentagon will become eligible to deduct up to $65 a month from their taxes for mass transit costs. That’s not as valuable as a direct subsidy, but depending on the employee’s tax bracket it could mean a saving of $20 a month or so.