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Trump Signs Executive Order to Freeze Federal Employees' Government Credit Cards

Trump Signs Executive Order to Freeze Federal Employees’ Government Credit Cards

Washington, February 27, 2025 – The Europe Today: U.S. President Donald Trump has signed an executive order freezing government-issued credit cards for federal employees for 30 days, a move aimed at bolstering the Department of Government Efficiency’s (DOGE) new “cost efficiency initiative.”

The executive order, which grants DOGE enhanced powers, stipulates that the freeze applies to all government credit cards, except for those used by employees involved in disaster relief, natural disaster response operations, or other critical services as determined by the agency head. Agencies may also implement additional exceptions as deemed appropriate.

DOGE, which oversees federal spending, has pointed to concerns over $40 billion spent via 4.6 million government credit cards last year. Though the department did not clarify what the funds were used for, a 2014 Congressional review uncovered some cases of government credit cards being used for personal purchases, with the most significant being $76,500 in prohibited purchases. However, these numbers pale in comparison to the reported $40 billion in total spending.

The executive order’s goal is to enhance transparency in government spending. The Government Card Charge Abuse Prevention Act of 2012 already mandates audits for agencies with over $10 million in travel card expenditures, and records of purchases and applicable transaction limits are maintained.

Furthermore, the executive order specifies that DOGE is working to establish a centralized technological system to track every payment issued by federal agencies. Each transaction will be accompanied by a written justification from the employee who approved the payment. Despite this centralization, questions remain on how DOGE will effectively manage oversight across various federal agencies, especially given the large scope of payments and a lack of clarity regarding leadership within the agency.

As part of the order, DOGE employees will take charge of overseeing payments within their respective agencies, although there has been some confusion regarding the identification of key leaders within the department.

The White House clarified that Amy Gleason is the head of DOGE, although further details on her appointment are scarce.