Trump Orders 30-Day Freeze on Federal Employee Credit Card Use
President Trump has ordered a 30-day suspension on the use of government-issued credit cards as part of his latest executive order, directing federal agencies to halt spending while an overhaul of the program is underway.
The order is part of the Department of Government Efficiency’s (DOGE) “Cost Efficiency Initiative”, which aims to increase transparency and accountability in government spending.
The credit card freeze comes just one week after DOGE revealed that federal employees racked up nearly $40 billion in spending on government-issued cards last year.
“To the maximum extent permitted by law, all credit cards held by agency employees shall be treated as frozen for 30 days from the date of this order,” the directive states.
Exceptions for Critical Services
The order allows exceptions for employees involved in disaster relief, emergency response, or other critical services. Agency heads, in consultation with DOGE, will determine which transactions are exempt.
Government Credit Card Spending Under Scrutiny
The federal government currently has approximately 4.6 million active credit card accounts—far exceeding the 3 million federal employees, not including government contractors or active-duty military personnel.
According to DOGE, these accounts processed 90 million transactions in fiscal year 2024, adding up to $40 billion in spending.
“DOGE is working w/ the agencies to simplify the program and reduce admin costs,” the Musk-led agency posted on X last week.
Managed by the General Services Administration (GSA), government credit cards are issued across 250+ federal agencies and Native American tribal governments, allowing employees to make purchases on behalf of their agencies.
Long History of Abuse
For decades, government-issued credit cards have been at the center of numerous spending scandals, with reports exposing taxpayer-funded purchases on:
✅ Adult entertainment
✅ Lego toys
✅ Expensive, multi-course meals
✅ Luxury travel and entertainment
The Musk-led DOGE initiative has pledged to simplify the program, reduce administrative waste, and eliminate fraud as part of its broader goal to cut $1 trillion in government spending.
