President Trump orders 30-day freeze on government credit cards to tackle $40 billion in spending

The move targets the misuse of 4.6 million government credit cards, which exceeded the number of federal employees which stands at around 3 million, and were linked to questionable spending.

By Cassie B.

March 2, 2025

• President Trump issued a 30-day freeze on government credit cards to curb wasteful spending after $40 billion in taxpayer-funded transactions were uncovered.

• Exemptions apply to critical services like disaster relief, with agency heads determining eligibility.

• The freeze is part of DOGE’s Cost Efficiency Initiative, led by Elon Musk, aiming to save $1 trillion in government waste over a decade.

• Agencies must develop centralized systems to track and justify payments, ensuring transparency and accountability.

• The move targets the misuse of 4.6 million government credit cards, which exceeded the number of federal employees and were linked to questionable spending.

President Donald Trump issued an executive order on Wednesday freezing the use of government-issued credit cards for 30 days.

The freeze, part of the Department of Government Efficiency’s (DOGE) “Cost Efficiency Initiative,” aims to curb wasteful spending and increase accountability after DOGE uncovered nearly $40 billion in taxpayer-funded credit card transactions last year.

The initiative, spearheaded by Elon Musk, seeks to streamline government operations and save taxpayer dollars.

The freeze applies to all federal employees, with exceptions for critical services such as disaster relief and natural disaster response.

Agency heads, in consultation with DOGE, will determine which operations qualify for exemptions.

The order also directs agencies to develop a centralized system to track and justify payments, ensuring transparency in government spending.

A $40 billion wake-up call

The decision to freeze credit card usage comes after DOGE revealed that the U.S. government currently has approximately 4.6 million active credit cards or accounts—far exceeding the number of federal employees, which stands at around 3 million.

These cards were used for roughly 90 million transactions in fiscal year 2024, totaling nearly $40 billion in spending.

DOGE, which cited publicly available data from the General Services Administration (GSA), highlighted the need for reform.

“DOGE is working with the agencies to simplify the program and reduce admin costs,” the department posted on X last week.

The findings underscore long-standing concerns about misuse of government credit cards, which have been linked to scandals involving charges for adult entertainment, luxury meals, and even Lego toys.

Streamlining government spending

The freeze is part of a broader effort by the Trump administration and DOGE to eliminate waste, fraud, and abuse in federal spending.

The executive order also mandates agencies to review existing contracts and grants, with the goal of renegotiating or terminating agreements that do not align with the administration’s efficiency goals.

Additionally, the order requires agencies to build a system to track and justify federally funded travel for non-essential purposes, such as conferences.

Agency heads must ensure that travel-approving officials provide written justifications for such expenses.

Musk, who leads DOGE, has pledged to cut at least $1 trillion in government waste over the next decade.

The 30-day credit card freeze is a significant step toward that goal, signaling a commitment to fiscal responsibility and transparency.

The freeze has been met with cautious optimism, with many viewing it as a necessary measure to address decades of unchecked spending.

By targeting credit card usage—a common source of abuse—the Trump administration and DOGE are sending a clear message: taxpayer dollars must be spent wisely.

As agencies work to implement the new system, the focus will remain on ensuring that critical services are not disrupted while wasteful spending is eliminated.

The 30-day freeze is just the beginning of what promises to be a transformative effort to make government more efficient and accountable to the American people.

President Trump’s 30-day freeze on government credit cards marks a significant step toward curbing wasteful spending and increasing transparency in federal operations.

With DOGE’s discovery of $40 billion in credit card transactions last year, the need for reform is clear.

By streamlining processes and holding agencies accountable, the administration is taking meaningful action to protect taxpayer dollars and ensure that government spending aligns with the nation’s priorities.

As the freeze takes effect, all eyes will be on DOGE and federal agencies to deliver results that benefit the American public.

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