The government's Department of Efficiency (DOGE) pledged on Tuesday to “simplify” the federal government's credit card program, costing taxpayers nearly $40 billion last year.
“The US government currently has around 4.6 million active credit cards/accounts, which processed a unique transaction of approximately $400 billion in 2024.”
“Doge works with agents to simplify the program and reduce administrative costs,” the group added.
Doge said he plans to solve the system and “will report it in a week.”
Data from the Bureau of Labor Statistics shows that the federal government employed just 3 million people in 2024. This means that you have more active credit cards submitted to federal agencies than to employees.
The General Services Bureau, which runs the program, points out that government contractors may also qualify for credit cards.
DOGE's emphasis on spending data is published on the GSA website.
Since 1998, GSA has managed the program, issuing credit cards linked to major banks to over 250 federal agencies and millions of Native American Tribal Government employees.
GSA allows government workers to “purchas on behalf of the federal government to use the so-called “SmartPay” system through “Streamline Transaction Processing” to enable government workers to “purchase on behalf of the federal government to support the agency's mission.”
The agency's website says the current system will result in an “increasing” of “accountability” and is “efficient and effective” in identifying “fraud, wasteful, and abuse.”
For decades, the federal government has been plagued by scandals involving the use of taxpayer-funded credit cards.
Over the years, government watchdogs have discovered everything from adult entertainment to Lego toys to luxurious multi-course meals to luxurious multi-course meals billed by taxpayers.
A recent audit of the Department of Defense Travel Costs Program found that 12% of credit card purchases with government-issued cards could be in violation of the Pentagon's spending policy in 2023.
DOD Inspector General Report$500,000 was found in transactions released last month at major sporting events, including casinos, mobile app stores, bars, nightclubs and Super Bowl.
According to IG, an additional $3.9 million deal was not even seen as $1.2 billion by the supervisor.
Under President Trump, Doge aims to cut government spending at least $1 trillion.
The Elon-Musk-led initiative claims it has saved taxpayers about $55 billion since the president took office.
