Lawmakers Want Stricter Rules on Federal Charge Card Use

The Department of Defense (DoD) faces new questions about dubious charges on government-issued cards. This has led lawmakers to ask for a wide-ranging federal probe into how all agencies use these cards.

Ernst and Comer Call for GAO Review Amid $40B in Questionable Spending

Senator Joni Ernst from Iowa and Representative James Comer from Kentucky have asked the Government Accountability Office (GAO) to do a thorough check of the federal charge card system. They made this request after audits showed widespread abuse of taxpayer-funded cards. People used these cards at casinos, strip clubs, bars, and even to access dating websites.

The Department of Government Efficiency (DOGE) just shared that in the 2024 fiscal year federal workers made about 90 million purchases using 4.6 million active cards, way more than the number of federal staff. While the count of active cards has now fallen to around 470,000, the total spent hit a whopping $40 billion.

What raised eyebrows was over 15,000 charges at what auditors called “high-risk merchants.” These included casino ATMs, online betting sites, and nightclubs. One case that stood out involved a military cardholder taking out almost $11,000 from ATMs inside a Maryland casino in just one visit.

Lawmakers Demand Action on Loopholes Amid $36T National Debt

In their joint letter to Comptroller General Gene Dodaro, Ernst and Comer stressed what they see as a widespread breakdown in internal controls. They highlighted that DoD officials in charge of overseeing purchase card programs could not provide any proof of attempts to examine transaction data to save money or spot misuse.

The lawmakers also targeted “split purchases”, a strategy where bigger transactions are divided into smaller ones to avoid going over the $3,500 limit for micro-purchases, thus dodging scrutiny.

Although the Pentagon is at the center of the latest discoveries, Comer and Ernst think the issue goes well beyond just one agency. They are asking the GAO to look into the standards for giving out these cards, how agencies keep track of their use, and if accounts get shut down when workers leave their jobs.

Both lawmakers say that without big changes, money will keep being wasted and used. They point out that with the country owing $36 trillion, it is key to make sure public money is spent.

If it happens, the GAO review they requested could change how money is handled in hundreds of agencies and bring about tougher rules for using government credit cards.