In a significant move to curb government inefficiencies, the Elon Musk-led Department of Government Efficiency (DOGE) has deactivated over 200,000 credit cards linked to various U.S. federal agencies. This action follows an extensive audit that flagged these cards as either unused or surplus to requirements.
Key Developments:
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DOGE, led by Elon Musk as an advisor to U.S. President Donald Trump, launched a comprehensive audit of 4.6 million government credit cards.
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More than 200,000 credit cards were deactivated in the first phase of the initiative.
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The audit is part of a broader effort to reduce unnecessary government spending and improve efficiency.
Audit and Transparency Measures
The Department of Government Efficiency shared updates on the progress via social media. A post on X (formerly Twitter) stated:
"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]."
The audit revealed that federal agencies collectively managed 4.6 million credit cards, which accounted for nearly $40 billion in expenditures last year. DOGE has committed to conducting further reviews to ensure financial accountability.
Government Response and Impact
In response to the audit findings, U.S. President Donald Trump issued an executive order mandating a 30-day suspension of all agency employee credit cards as part of a broader transformation in federal spending.
The move affects several federal agencies, including:
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Department of Homeland Security
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NASA
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U.S. Department of Agriculture (USDA)
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Environmental Protection Agency (EPA)
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Department of Commerce
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Department of the Treasury
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Department of Education
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Social Security Administration
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Department of Housing and Urban Development
Concerns Over Operational Disruptions
While the initiative aims to optimize federal spending, it has also sparked concerns among government employees. Reports suggest that DOGE has reduced numerous federal employees' credit card limits to just $1, making it difficult for them to procure essential work-related supplies and services. Fortune magazine highlighted that federal workers are prohibited from using personal credit cards for official expenses, raising operational challenges for agencies.
What is DOGE?
Established through an executive order on January 20, 2025, the Department of Government Efficiency (DOGE) is tasked with streamlining federal operations and reducing wasteful expenditure. Headed by Elon Musk, DOGE has already proposed significant budget cuts, including dismissing over 200,000 federal employees to optimize government functions.
Future Outlook
Experts remain divided on the effectiveness of DOGE’s aggressive cost-cutting measures. While some praise the initiative as a necessary step toward fiscal responsibility, others warn of potential disruptions in critical government services. As the review of the remaining 4.4 million credit card accounts continues, further actions from DOGE are anticipated in the coming months.
