The Department of Government Efficiency (DOGE) announced plans Tuesday to streamline the federal government’s credit card program, which racked up nearly $40 billion in taxpayer-funded expenses last year.
“The U.S. government currently has ~4.6M active credit cards/accounts, which processed ~90M unique transactions for ~$40B of spend in FY24,” DOGE posted on X.
The agency, which is led by Elon Musk, said it is working with federal departments to simplify the program and reduce administrative costs, promising to report back with a plan within a week.
Data from the Bureau of Labor Statistics shows that the federal workforce numbered just over 3 million in 2024—meaning there are more active government credit cards than actual employees.
The General Services Administration (GSA), which manages the program, notes that government contractors may also be issued credit cards under the system. Since 1998, GSA’s SmartPay program has provided millions of employees across 250+ federal agencies and tribal governments with cards linked to major banks.
GSA claims its system improves efficiency, accountability, and fraud detection, but critics argue that rampant waste and abuse continue to plague government spending.
Over the years, federal credit cards have been at the center of numerous spending scandals, with watchdog reports exposing purchases on everything from adult entertainment to Lego sets and lavish dining.
A recent audit of the Department of Defense’s travel charge program found that in 2023, 12% of credit card transactions may have violated Pentagon spending policies.
The DOD inspector general’s report revealed that government-issued cards were used for:
Under President Trump’s administration, DOGE has set a goal to slash at least $1 trillion in government spending.
Since Trump took office, the initiative claims to have saved taxpayers approximately $55 billion, and the credit card overhaul is the latest step in its broader cost-cutting mission.
Subscribe to our newsletter for the latest financial insights and news.
+
