Donald Trump has taken an unprecedented step—freezing government-issued credit cards for federal workers for 30 days. The order, aimed at cutting costs and increasing oversight, has left many in the federal workforce scrambling for answers.
This controversial move, spearheaded by the Department of Government Efficiency (DOGE), is part of a broader “cost efficiency initiative.” However, one anonymous government official told Newsweek that this action is “basically a government shutdown but worse because of the uncertainty.”
According to the order, the freeze applies to all federal employee credit cards, except those used for disaster relief, critical services, and other exceptions determined by agency heads. The executive order specifies that the freeze will be enforced “to the maximum extent permitted by law.”
Why It Matters
DOGE has cited alarming numbers, claiming that 4.6 million government-issued credit cards were responsible for $40 billion in spending last year. However, the agency has yet to clarify what these expenditures entailed.
A 2014 Congressional review found evidence of misuse, but the most significant improper spending within a single agency amounted to only $76,500—a far cry from the billions now under scrutiny. Adding to the confusion, DOGE recently miscalculated its reported savings, mistakenly claiming an $8 billion reduction after slashing a contract with ICE. The actual figure? Just $8 million.
What You Need to Know
Trump’s executive order aims to bring greater transparency to government spending. Currently, the Government Card Charge Abuse Prevention Act of 2012 already requires federal agencies spending over $10 million on travel cards to undergo audits. These audits are reviewed by the Office of Management and Budget (OMB), ensuring accountability.
However, this new order shifts financial oversight entirely to DOGE. Under this plan, DOGE will establish a centralized payment tracking system, requiring justifications for every expenditure. Critics question whether putting one agency in charge of reviewing billions in transactions will truly increase efficiency—or just create a bureaucratic bottleneck.
Confusion and Criticism Mount
The lack of clarity surrounding the order has left government employees and officials frustrated. One federal worker expressed concern, telling Newsweek: “Are employees still supposed to travel? Are they just supposed to use their personal cards and hope they get reimbursed?”
Meanwhile, DOGE has offered little reassurance, simply stating on social media: “We are working with agencies to simplify the credit card program and reduce administrative costs—we will report back in one week.”
The freeze is already causing ripple effects. Dr. Frank Han, a pediatric cardiologist, pointed out on X (formerly Twitter) that hospitals serving veterans could be unable to restock supplies or transport patients because of DOGE’s blanket restrictions.
What Happens Next?
With major exceptions written into the order and legal limits on how much power DOGE can wield, it remains unclear how strictly this freeze will be enforced. Many expect this executive order—like several of Trump’s past policy moves—to face swift legal challenges. Will federal workers be left in financial limbo, or will the courts step in? Stay tuned.
