President Trump has issued an executive order implementing a 30-day freeze on the use of government-issued credit cards as part of the Department of Government Efficiency’s “Cost Efficiency Initiative.” This initiative aims to make government spending transparent and hold government employees accountable to the American public. The freeze on credit card usage was prompted by the discovery of nearly $40 billion in spending linked to government-issued credit cards over the past year. The order also allows exceptions for credit cards being used for disaster relief, natural disaster response, or other critical services as determined by agency heads in consultation with the Department of Government Efficiency.
The Cost Efficiency Initiative, led by billionaire Elon Musk, aims to simplify the federal government’s credit card program managed by the General Services Administration (GSA). There are currently about 4.6 million active credit cards or credit card accounts in use by federal employees, exceeding the total number of federal workers. The program saw around 90 million unique transactions in fiscal year 2024, totaling $40 billion in expenses for the federal government. DOGE is working with agencies to streamline the program and reduce administrative costs, with credit cards issued to federal employees in various agencies and Native American tribal governments. Over the years, scandals involving taxpayer-funded credit cards have plagued the federal government, ranging from inappropriate charges to lavish expenditures.
Trump’s executive order also directs federal agencies to work with DOGE to develop a centralized technological system to record payments made by agencies for covered contracts and grants. Agency heads are instructed to review contracting policies and personnel, terminate or modify existing contracts and grants to reduce spending, and advance the administration’s policies. Furthermore, the order calls for a system to record approvals for federally funded travel for conferences and other non-essential purposes. Agency employees are prohibited from engaging in federally funded travel for non-essential purposes unless a written justification for the travel is submitted and approved through the new system. The goal of the DOGE initiative, led by Elon Musk, is to cut at least $1 trillion in government waste, fraud, and abuse.
Overall, the executive order aims to increase transparency in government spending, hold agency employees accountable, and reduce inefficiencies in the use of government-issued credit cards. By implementing a freeze on credit card usage, exceptions for critical services, and developing new technological systems to record payments and travel approvals, the Trump administration is taking steps to streamline government spending and reduce waste. The initiative led by Elon Musk seeks to simplify the federal credit card program, which has been marred by scandals over the years. Through increased oversight and accountability, the administration hopes to cut down on unnecessary expenses and promote efficiency in federal operations.
