Elon Musk-led DOGE or the Department of Government Efficiency has deactivated in excess of 200,000 credit cards associated with various US federal agencies! Elon Musk, the world’s richest person, is also an advisor to US President Donald Trump. This action followed an audit that identified these credit cards as either unused or surplus to requirements. So how does this unprecedented move by the Musk-led department mean? Why has DOGE chosen to undertake an audit of 4.6 million credit cards and accounts? How does it impact federal workers? We take a look:
DOGE shared the progress on social media, highlighting their ongoing efforts to eliminate governmental inefficiency and mismanagement. The post said: "Weekly Credit Card Update! Pilot program with 16 agencies to audit unused/unneeded credit cards. After 3 weeks, >200,000 cards have been de-activated. Great progress this past week by @HHSGov [U.S. Department of Health and Human Services] @Interior [U.S. Department of the Interior]."
Musk-led DOGE has also noted that approximately 4.6 million credit cards and accounts were active when the audit commenced, indicating that additional review and action would be necessary. (AP Photo)
DOGE's credit card deactivation stems from a collaborative effort with federal agencies, announced on February 18, under the guidance of Elon Musk. The initiative aims to optimize credit card account management and decrease operational expenses. (AP Photo)
Statistics reveal that the federal government oversaw 4.6 million credit cards, handling 90 million distinct transactions in the 2024 fiscal year.
US President Donald Trump responded by issuing an executive order for a "transformation in Federal spending", mandating a 30-day suspension of agency employee credit cards. (AP Photo)
The suspension affects multiple federal entities, including the Department of Homeland Security, Department of Health and Human Services (HHS), NASA, U.S. Department of Agriculture (USDA), Environmental Protection Agency (EPA), Department of Commerce, Department of the Treasury, Department of the Interior, Department of Education, Small Business Administration (SBA), Department of Labor, Office of Personnel Management (OPM), General Services Administration (GSA), Social Security Administration, and the Department of Housing and Urban Development. (AP Photo)
DOGE has initiated transparency measures by providing regular updates about its operations. DOGE reported that these 4.6 million government credit cards accounted for £40 billion in expenditure in the previous year. (AP Photo)
DOGE has additionally reduced numerous federal employees' credit card limits to $1, resulting in staff complaints about their inability to perform job functions. Fortune reports that federal employees depend on these cards for purchasing necessary work-related supplies and services, as they are not permitted to use personal credit cards for official expenses. (AP Photo)
DOGE move impact: The suspension and deactivation of government credit cards might disrupt and slow down federal agencies' daily functions, as experts cautioned—whilst the advantages remain uncertain, according to NewsWeek. (AP Photo)
DOGE, established through executive order on January 20 and headed by Elon Musk, the world's richest individual, seeks to reduce federal government size and eliminate operational inefficiencies and wastage. Since its inception, this cost-reduction department has proposed dismissing over 200,000 federal employees. (AP Photo)