The Department of Government Efficiency (DOGE) has announced plans to streamline the federal government’s credit card program, which cost taxpayers nearly $40 billion last year.
According to an update from DOGE, the US government currently has around 4.6 million active credit cards/accounts, processing approximately 90 million unique transactions totaling $40 billion in spending in FY24.
DOGE is collaborating with agencies to simplify the program and reduce administrative costs, with a detailed plan expected to be revealed in a week.
It is interesting to note that the number of active credit cards in the federal government surpasses the number of employees, with over 3 million people employed by the government in 2024.
The General Services Administration, responsible for the program, mentions that government contractors may also qualify for credit cards.
DOGE has promised to present a comprehensive plan to untangle the system within a week. The spending data mentioned by DOGE is publicly accessible on the GSA website.
Since 1998, the GSA has overseen the program, which provides credit cards from major banks to millions of employees across more than 250 federal agencies and Native American tribal governments.
The GSA emphasizes that its “SmartPay” system allows government workers to make purchases in support of their agency’s mission, streamlining transaction processing.
