How DOGE gave 300,000 government credit cards the axe – And what’s next

Washington D.C. – In an effort to reduce government spending and streamline operations, Elon Musk’s Department of Government Efficiency (DOGE) has announced a significant move: nearly 300,000 government credit cards have been canceled as part of a broader initiative to audit and eliminate unnecessary or unused accounts.

On Sunday, DOGE shared the update on X, revealing that after a five-week pilot program, 298,000 cards had been deactivated. At the start of the audit, the government had approximately 4.6 million active cards, which processed around 90 million transactions and contributed to an estimated $40 billion in spending during the 2024 fiscal year. While the latest reduction marks a step forward, DOGE officials acknowledged that there is still work to be done.

The canceled cards are part of a larger strategy to eliminate waste in government spending. Musk’s department has been focusing on identifying opportunities for cost reductions across federal agencies, aiming for greater efficiency and accountability. As part of its latest initiatives, DOGE has also instituted stricter rules for the Small Business Administration’s (SBA) loan program, including requiring applicants to provide a date of birth and eliminating direct loans for those under 18 or over 120 years old. These measures are designed to prevent fraud in government programs and ensure that taxpayer dollars are used effectively.

The efficiency drive, however, has not been without its controversies. The SBA recently announced a 43% workforce reduction, eliminating around 2,700 positions in an effort to realign the agency with its core mission of supporting small businesses. Despite the job cuts, the SBA assured the public that essential services such as loan guarantees and disaster assistance would remain unaffected. The move is expected to save taxpayers more than $435 million annually by 2026.

The ongoing wave of government layoffs extends beyond the SBA. The Environmental Protection Agency (EPA) is planning to dismantle its scientific research office, which could result in the loss of over 1,000 jobs. The Internal Revenue Service (IRS) is also set to cut around 18,000 positions, and the U.S. Postal Service plans to reduce its workforce by 10,000 employees. These cuts, along with the Pentagon’s plans to slash up to 60,000 civilian jobs, have sparked concerns about the long-term impact on government services and public trust.

Despite these challenges, DOGE claims that its initiatives have saved the federal government an estimated $115 billion as of mid-March. However, much of the savings remain unverified, with only $8.6 billion being confirmed through contract, grant, and lease cancellations. DOGE’s broader goal is to meet Musk’s ambitious target of $1 trillion in cost savings, though the path forward remains uncertain.

Critics have raised concerns about the impact of these cuts on government services, particularly in essential sectors like veterans’ affairs, education, and environmental protection. Meanwhile, some federal workers have voiced frustration over job security, as mass layoffs continue to unfold across agencies.

In the midst of these cuts, DOGE remains focused on its mission to maximize government efficiency. Despite its unconventional approach, the department’s efforts to reduce waste and streamline operations have captured the attention of both supporters and critics alike, as the country navigates the complexities of government restructuring.