The Division of Authorities Effectivity (DOGE) pledged to “simplify” the federal authorities’s bank card program on Tuesday which value taxpayers almost $40 billion final yr.
“The US government currently has ~4.6M active credit cards/accounts, which processed ~90M unique transactions for ~$40B of spend in FY24,” learn an X put up from the cost-cutting initiative’s official account.
“DOGE is working w/ the agencies to simplify the program and reduce admin costs,” the group added.
DOGE mentioned it “will report back in 1 week” with its plan to disentangle the system.
Information from the Bureau of Labor Statistics point out that the federal authorities employed simply over 3 million individuals in 2024 – which means that extra lively bank cards are on file with federal authorities businesses than workers.
The Basic Companies Administration, which runs this system, notes that authorities contractors may additionally be eligible for bank cards.
The spending knowledge highlighted by DOGE is publicly out there on the GSA web site.
Since 1998, the GSA has managed this system, which points bank cards linked to main banks to hundreds of thousands of workers at greater than 250 federal businesses and Native American tribal governments.
GSA touts that it’s so-called “SmartPay” system allows authorities employees “to make purchases on behalf of the federal government in support of their agency’s mission” with “streamline transaction processing.”
The company web site states that the present system ends in an “increase” in “accountability” and is “efficient and effective” at figuring out “fraud, waste, and abuse.”
For many years, the federal authorities has been plagued with scandals involving using taxpayer-funded bank cards.
Through the years, authorities watchdogs have discovered every little thing from grownup leisure to LEGO toys to lavish multi-course meals being charged to taxpayers.
A latest audit of the Division of Protection’s journey cost program discovered that 12% of bank card purchases on government-issued playing cards could have violated the Pentagon’s spending insurance policies in 2023.
The DOD inspector common report, launched final month, discovered $500,000 in transactions made at casinos, cellular app shops, bars, nightclubs and main sporting occasions, together with the Tremendous Bowl.
One other 3.9 million transactions, totaling $1.2 billion, weren’t even reviewed by supervisors, the IG discovered.
Underneath President Trump, DOGE goals to chop a minimum of $1 trillion in authorities spending.
The Elon-Musk-led initiative claims it has saved taxpayers about $55 billion because the president was sworn into workplace.
