Here’s what Trump is thinking.
President Donald Trump took a significant step on Wednesday to tackle government waste by signing an executive order freezing the use of government-issued credit cards for a period of 30 days. This move is part of his broader effort to rein in government spending and hold federal agencies accountable to the American people.
The executive order enacts the “Cost Efficiency Initiative” under the Department of Government Efficiency (DOGE), an initiative designed to increase transparency in government spending. The freeze on credit card use comes just a week after DOGE revealed that nearly $40 billion in taxpayer money was spent on government-issued credit cards in the previous year. This stark revelation has fueled concerns about wasteful spending and lack of oversight.
The order mandates that, to the fullest extent allowed by law, all government-issued credit cards be frozen for a 30-day period. However, there are important exceptions for situations related to disaster relief or critical services as determined by agency heads in collaboration with DOGE.
This initiative, championed by prominent businessman Elon Musk, seeks to streamline and simplify the federal credit card program, which is currently managed by the General Services Administration (GSA). At present, the government has roughly 4.6 million active credit cards in circulation, more than the total number of federal workers. In fiscal year 2024, approximately 90 million transactions were made, adding up to an astounding $40 billion in charges.
For years, the federal credit card system has been marred by scandals, including frivolous expenses like adult entertainment, luxury meals, and even toys. Under the new executive order, federal agencies are required to work with DOGE to develop a centralized system that records and justifies every payment made by government employees. This will ensure that taxpayers’ money is being spent wisely and efficiently.
Additionally, the order requires federal agencies to scrutinize their contracts and spending practices. Agency heads are directed to review their contracting policies, and where possible, renegotiate or terminate contracts to reduce waste. A key part of this initiative is a push to stop non-essential, federally funded travel for conferences, unless the travel is thoroughly justified in advance.
Trump’s executive order is part of a larger effort to eliminate government waste, fraud, and abuse. Musk and DOGE are aiming to cut at least $1 trillion in inefficiencies within the federal government, prioritizing the interests of hardworking American taxpayers and ensuring that every dollar spent is accounted for. This bold action sets a clear message that transparency and accountability in government are vital to restoring the public’s trust.