The Department of Government Efficiency said more than 200,000 federal government credit cards have been canceled in an audit of 16 agencies. The effort followed an executive order from President Trump that called for a 30-day freeze on most government card spending.
The Department of Government Efficiency (DOGE) has announced the cancellation of more than 200,000 federal credit cards as part of an effort to cut spending across federal agencies. DOGE, which was led by Elon Musk, then a senior adviser to President Trump, shared the update on social media.
The step followed an executive order by President Donald Trump that called for a 30-day freeze on government credit card spending, with limited exceptions.
Why were 200,000 government credit cards canceled?
DOGE said that in fiscal year 2024, the federal government had about 4.6 million active credit cards, used for roughly 90 million transactions.
DOGE said it began an audit program with 16 federal agencies to reduce the number of cards in use. In a three-week progress update, it said more than 200,000 card accounts had been canceled.
The administration presented the cancellations as a way to reduce waste and improve oversight of how public funds are spent.
Trump’s executive order on spending
About a week after DOGE began the program, President Trump signed an executive order directing agencies to freeze credit card use for 30 days. The order described the step as part of a “transformation in federal spending” aimed at cutting waste.
Exemptions to the freeze
The freeze was not absolute. The executive order allowed card use to continue in certain cases, including:
- Disaster relief or emergency response
- Critical services and other uses approved by agency heads
The exemptions were meant to keep essential services running while other spending was paused.
Problems reported at some agencies
Several agencies have reported difficulties as a result of the sudden limits on card spending.
Impact on the Food and Drug Administration (FDA)
Staff at the Food and Drug Administration reported difficulty ordering lab supplies used in testing food, medicine and medical devices, according to reports by Wired and the Washington Post. The FDA said it was continuing its most important work.
Impact on the Department of Defense
At the Department of Defense, a memo dated March 5 said civilian employees faced a $1 spending limit on their government travel cards.
Under that limit, the cards could not be used for travel expenses unless the trip directly supported military operations or a permanent change of station, which were exempt from the freeze.
Similar $1 limits were reported at some other agencies, raising concern among employees about how to carry out routine work.
The administration’s case for the cuts
President Trump and Elon Musk have argued that the federal government should cut unnecessary spending and operate more efficiently. The administration said reducing the number of cards and monitoring spending more closely would help prevent misuse of public funds and duplicate purchases.
How federal employees are reacting
Many federal workers use government cards for travel, field work and buying supplies. Some employees said the limits were causing delays and slowing routine work. Agencies have been reviewing internal processes to keep critical tasks running during the freeze.
What comes next
The card freeze was set to last 30 days. DOGE has said it plans further audits of federal spending. How agencies adapt in the coming weeks will show whether the changes deliver savings without disrupting services.
Source: Fox News
