In a significant move to enhance federal spending oversight, President Donald Trump has issued an executive order mandating a 30-day freeze on the use of government-issued credit cards.
This directive is part of a broader initiative aimed at promoting transparency and accountability within federal agencies.
The executive order, signed on February 26, 2025, requires all federal agencies to appoint representatives from Elon Musk’s Department of Government Efficiency (DOGE).
These representatives are tasked with overseeing agency expenditures to ensure compliance with the new measures.
A key component of the order is the immediate 30-day suspension of all government-issued credit cards, with exceptions for disaster relief and other critical services as determined by agency heads.
This action follows DOGE’s discovery that the U.S. government maintains approximately 4.6 million active credit cards or accounts, surpassing the total number of federal employees, which stands at around 3 million, excluding contractors and active-duty military personnel.
In 2024 alone, these cards accounted for nearly 90 million transactions, totaling close to $40 billion.
Beyond the credit card freeze, the executive order mandates that each agency develop a centralized system to record and justify all payments made under federal contracts and grants.
This system aims to provide a mechanism for agency heads to review and, if necessary, pause any payment lacking proper justification.
Additionally, agencies are instructed to review existing contracts and grants, terminating or modifying them as appropriate to reduce overall federal spending and enhance efficiency.
The order also imposes restrictions on federally funded travel, requiring written justification for non-essential trips, and calls for an assessment of government-owned real estate to identify properties that can be sold to reduce costs.
Agencies have been given specific timelines to implement these measures, including a 30-day period to review contracts and grants and a 60-day timeframe to submit plans for the disposition of unneeded real property.
While the administration asserts that these steps are necessary to eliminate waste and improve efficiency, critics argue that such sweeping measures could disrupt essential government functions and services.
The full impact of the credit card freeze and other executive order provisions will become clearer as agencies begin to implement the mandated changes in the coming weeks.
