President Donald Trump has issued a new executive order temporarily freezing federal employee credit cards for 30 days, aiming to enhance oversight of government spending on contracts, grants, and loans.
Key Details of the Order
- The freeze applies to all federal employee credit cards, except those used for disaster relief or natural disaster response.
- Members of the military, law enforcement, and border security agents are exempt from the freeze.
- Heads of government agencies, in consultation with DOGE, may approve certain charges as necessary.
Increased Oversight on Federal Spending
The executive order requires federal agencies to work with DOGE to review, modify, and remove contracts and grants deemed unnecessary. Agencies must also establish systems to record all payments associated with contracts and grants, along with written justifications from approving employees. Additionally, agencies have been instructed to identify surplus government-owned property.
Expanding DOGE’s Authority
This marks Trump’s second executive order aimed at expanding DOGE’s role in federal oversight. The previous order, issued on February 11, focused on downsizing the federal workforce by mandating agency consultations with DOGE on hiring plans and staffing levels.
Trump and DOGE chief Elon Musk have pushed for restructuring federal agencies and cutting government spending, particularly targeting the U.S. Agency for International Development, the IRS, and the Environmental Protection Agency, which have all experienced significant layoffs. However, these efforts have faced legal challenges, including a recent court ruling that temporarily blocked the administration from eliminating diversity, equity, and inclusion contracts and from firing a government ethics watchdog.
With the latest executive order, the Trump administration continues its push to tighten government spending, though further legal battles may lie ahead.
