Federal agencies scramble after 200,000 credit cards axed in DOGE spending crackdown

Washington D.C. – The Department of Government Efficiency (DOGE) announced Tuesday that it has canceled more than 200,000 government credit cards as part of an ongoing effort to streamline federal spending. The decision was shared in a post on X, marking a significant step in a broader initiative aimed at reducing administrative costs across federal agencies.

DOGE, which is overseen by billionaire entrepreneur and White House advisor Elon Musk, first revealed plans to audit and consolidate government credit card accounts on February 18. At the time, the agency estimated that the federal government maintained approximately 4.6 million credit cards, processing 90 million unique transactions in the 2024 fiscal year.

Just a week later, President Donald Trump issued an executive order calling for a 30-day freeze on agency employee credit cards as part of what he described as a “transformation in Federal spending.” The order, which took effect immediately, was aimed at curbing wasteful expenditures and aligning with the administration’s ongoing efforts to slash government costs, including proposed layoffs of more than 100,000 federal employees.

In its latest update, DOGE reported that a pilot audit program covering 16 federal agencies has been underway, with the Department of Health and Human Services and the Department of the Interior showing “great progress” over the past week. While officials maintain that the freeze is a necessary step toward fiscal responsibility, reports suggest it has created significant disruptions across multiple agencies.

Although the executive order allows exemptions for credit card use in disaster relief, national security operations, and other critical services as determined by agency heads, several departments have reported challenges in carrying out day-to-day operations.

According to reports from Wired and The Washington Post, employees at the Food and Drug Administration (FDA) have been hindered in their ability to procure essential lab supplies needed for consumer safety testing. The FDA responded to the concerns in a statement to the Post, affirming its commitment to continuing “mission-critical work” despite the spending limitations.

Similarly, a March 5 memo from the Department of Defense (DoD) revealed that civilian employees using government-issued travel credit cards have been restricted to a $1 spending limit. Travel exemptions exist for those engaged in military operations or undergoing a permanent change of station, but the restriction has raised concerns about how routine government functions will be sustained.

The $1 spending cap has reportedly affected several other agencies, compounding frustrations among federal employees and contractors who rely on these credit cards for necessary operational expenses.

Both Trump and Musk have long advocated for aggressive cost-cutting measures within the federal government. In addition to canceling government credit cards, their efforts have included proposals for deep staffing reductions and increased automation to streamline agency functions.

While the administration touts these moves as a necessary overhaul to rein in spending, critics argue that the freeze and cancellations have been implemented too abruptly, disrupting essential government services. Lawmakers and federal employee unions have raised concerns over how agencies can maintain efficiency under such constraints, especially as the audit continues.

As the 30-day credit card freeze nears its midpoint, federal agencies and watchdog groups will be closely monitoring its long-term effects on government operations and whether the administration will extend, modify, or lift the restrictions once the initial period expires.