- The Department of Government Efficiency (DOGE) has deactivated over 2 lakh federal credit cards to curb spending.
- President Donald Trump signed an executive order freezing agency employee credit cards for 30 days.
- The move has disrupted federal agencies, including the FDA and the Department of Defense.
The decision to deactivate these government credit cards comes as part of a broader effort to streamline federal spending. DOGE, a newly formed advisory body led by Elon Musk, aims to reduce inefficiencies by tightening financial oversight and cutting redundant expenditures.
However, the sudden cancellation has raised concerns among agencies relying on these credit cards for essential purchases. Employees at the FDA have reported difficulties in obtaining lab supplies, while civilian workers at the Department of Defense are struggling with reduced travel credit limits.
Federal Cost-Cutting: DOGE Cancels 2 Lakh Credit Cards, Sparks Debate
DOGE, established via executive order in January, has quickly implemented aggressive spending reforms. This latest decision, deactivating over 2 lakh credit cards, is one of its most significant moves yet. The White House maintains that the cancellations will curb unnecessary expenditures and bring accountability to government spending.
The executive order signed by Trump enforced a temporary freeze on federal credit card usage, affecting numerous agencies. While exemptions exist for critical services such as disaster relief, many departments have faced operational hurdles due to the abrupt implementation. Reports indicate that some agencies struggled to procure essential resources, sparking backlash from employees and stakeholders.
The Department of Defense, in particular, has felt the impact, with civilian employees seeing their travel credit card limits slashed to just $1. This has complicated official travel for government workers, particularly those not directly engaged in military operations. The ripple effects of the policy have led to growing concerns about its long-term feasibility.
Despite the disruptions, Elon Musk defended the decision, arguing that federal spending had become excessive and unsupervised. He emphasized that there were more credit cards in circulation than government employees, suggesting the potential for widespread misuse. However, the administration has yet to disclose the exact financial benefits expected from the cancellations.
While the cancellation of government credit cards aims to curb wasteful spending, the lack of clear cost-saving data and the operational disruptions it has caused make it a controversial move. The long-term impact remains uncertain.
“The problem is not that we have too many government programs; it’s that we have too little accountability.” — Ronald Reagan
