diff --git a/src/libs/actions/IOU.ts b/src/libs/actions/IOU.ts
index 1b8b06841dda..403940898fdb 100644
--- a/src/libs/actions/IOU.ts
+++ b/src/libs/actions/IOU.ts
@@ -199,6 +199,7 @@ import {
     isTrackExpenseReport,
     prepareOnboardingOnyxData,
     shouldCreateNewMoneyRequestReport as shouldCreateNewMoneyRequestReportReportUtils,
+    shouldEnableNegative,
     updateReportPreview,
 } from '@libs/ReportUtils';
 import {getCurrentSearchQueryJSON} from '@libs/SearchQueryUtils';
@@ -4762,8 +4763,9 @@ function getUpdateTrackExpenseParams(
     // - we're merging two expenses (server does not create MODIFIED_EXPENSE in this flow)
     // In these cases, there isn't a valid optimistic mileage data we can use,
     // and the report action is created on the server with the distance-related response from the MapBox API
+    const allowNegative = shouldEnableNegative(transactionThread ?? undefined);
     const updatedReportAction = shouldBuildOptimisticModifiedExpenseReportAction
-        ? buildOptimisticModifiedExpenseReportAction(transactionThread, transaction, transactionChanges, false, policy, updatedTransaction)
+        ? buildOptimisticModifiedExpenseReportAction(transactionThread, transaction, transactionChanges, false, policy, updatedTransaction, allowNegative)
         : null;
     if (!hasPendingWaypoints && !(hasModifiedDistanceRate && isFetchingWaypointsFromServer(transaction)) && updatedReportAction) {
         apiParams.reportActionID = updatedReportAction.reportActionID;