A major government efficiency initiative has resulted in the cancellation of over 200,000 federal credit cards after an extensive audit revealed they were sitting unused. This development was announced Monday evening by the Department of Government Efficiency (DOGE), now under the leadership of Elon Musk.
The cancellations follow DOGE’s February discovery of approximately 4.6 million government credit cards responsible for more than 90 million transactions totaling over $40 billion. The agency shared these findings through their social media platform X, highlighting their ongoing pilot program involving 16 federal agencies to identify and eliminate unnecessary credit cards.
Significant progress has been noted particularly within the Department of Health and Human Services (HHS) and the Department of Interior. The audit revealed that several departments were responsible for substantial credit card spending during Fiscal Year 2024, with the Department of Veterans Affairs leading at $17.3 billion, followed by the Department of Defense at $11.2 billion.
According to data from the General Services Administration (GSA), the total program spending reached $39.7 billion in fiscal year 2024, with agencies and organizations earning $506 million in refunds. The average transaction amount was reported at $441.
The credit card initiative comes amid ongoing legal challenges facing DOGE. A recent ruling by U.S. District Judge Christopher Cooper in Washington determined that the agency must comply with the Freedom of Information Act (FOIA), despite government lawyers arguing for exemption due to DOGE’s position within the Executive Office of the President.
Judge Cooper’s decision emphasized DOGE’s independent authority, noting that the agency, established by President Trump’s executive order in January, has demonstrated the power to substantially reshape and eliminate federal programs. This ruling came in response to a lawsuit filed by Citizens for Responsibility and Ethics in Washington, a left-leaning watchdog group.
In addition to the credit card audit, DOGE recently uncovered potentially fraudulent COVID-19 pandemic loans totaling $312 million. These loans were reportedly issued to individuals identified as children aged 11 and younger, raising red flags about the legitimacy of 5,593 loans where Social Security numbers didn’t match the names provided.
The agency continues its mission to streamline government spending and reduce administrative costs, working directly with federal agencies to simplify their credit card programs. DOGE’s efforts represent a broader initiative to identify and eliminate wasteful government spending, with the credit card audit serving as just one component of their comprehensive review of federal financial practices.
This systematic evaluation of government credit card usage has revealed the extensive scope of federal spending through these payment methods, with five major departments – Defense, Veterans Affairs, Homeland Security, General Services Administration, and Agriculture – accounting for the highest transaction volumes.
The agency maintains that while significant progress has been made in identifying and eliminating unused credit cards, there remains substantial work ahead in their mission to enhance government efficiency and reduce unnecessary spending. Their ongoing efforts continue to uncover various instances of potential waste and misuse of government resources, demonstrating the importance of regular audits and oversight in federal financial management.