The Department of Government Efficiency (DOGE) pledged to “simplify” the federal government’s credit card program on Tuesday which cost taxpayers nearly $40 billion last year.
“The US government currently has ~4.6M active credit cards/accounts, which processed ~90M unique transactions for ~$40B of spend in FY24,” read an X post from the cost-cutting initiative’s official account.
“DOGE is working w/ the agencies to simplify the program and reduce admin costs,” the group added.
DOGE said it “will report back in 1 week” with its plan to disentangle the system.
Data from the Bureau of Labor Statistics indicate that the federal government employed just over 3 million people in 2024 – meaning that more active credit cards are on file with federal government agencies than employees.
The General Services Administration, which runs the program, notes that government contractors may also be eligible for credit cards.
The spending data highlighted by DOGE is publicly available on the GSA website.
Since 1998, the GSA has managed the program, which issues credit cards linked to major banks to millions of employees at more than 250 federal agencies and Native American tribal governments.
GSA touts that it’s so-called “SmartPay” system enables government workers “to make purchases on behalf of the federal government in support of their agency’s mission” with “streamline transaction processing.”
The agency website states that the current system results in an “increase” in “accountability” and is “efficient and effective” at identifying “fraud, waste, and abuse.”
For decades, the federal government has been plagued with scandals involving the use of taxpayer-funded credit cards.
Over the years, government watchdogs have found everything from adult entertainment to LEGO toys to lavish multi-course meals being charged to taxpayers.
A recent audit of the Department of Defense’s travel charge program found that 12% of credit card purchases on government-issued cards may have violated the Pentagon’s spending policies in 2023.
The DOD inspector general report, released last month, found $500,000 in transactions made at casinos, mobile app stores, bars, nightclubs and major sporting events, including the Super Bowl.
Another 3.9 million transactions, totaling $1.2 billion, were not even reviewed by supervisors, the IG found.
Under President Trump, DOGE aims to cut at least $1 trillion in government spending.
The Elon-Musk-led initiative claims it has saved taxpayers about $55 billion since the president was sworn into office.
