Lawmakers Push for Stricter Regulations on Federal Charge Card Usage

The Department of Defense (DoD) is under intense scrutiny as alarming details emerge about improper charges on government-issued cards, prompting calls from lawmakers for a comprehensive federal investigation. Senator Joni Ernst of Iowa and Representative James Comer of Kentucky have urged the Government Accountability Office (GAO) to launch an extensive review of federal charge card usage across all agencies. This appeal follows audits disclosing rampant misuse of taxpayer-funded cards, with expenditures at casinos, strip clubs, bars, and even dating websites.

Further concerns have been raised by the Department of Government Efficiency (DOGE), which reported that in the 2024 fiscal year alone, federal employees executed approximately 90 million transactions using 4.6 million active cards, surpassing the number of federal employees. Although the number of active cards has since diminished to around 470,000, the total expenditure reached a staggering $40 billion. Particularly notable were over 15,000 transactions at “high-risk merchants,” such as casino ATMs, online betting platforms, and nightclubs. A standout case involved a military cardholder withdrawing nearly $11,000 from ATMs inside a Maryland casino in a single visit.

Further concerns have been raised by the Department of Government Efficiency (DOGE), which reported that in the 2024 fiscal year alone, federal employees executed approximately 90 million transactions using 4.6 million active cards, surpassing the number of federal employees. Although the number of active cards has since diminished to around 470,000, the total expenditure reached a staggering $40 billion. Particularly notable were over 15,000 transactions at “high-risk merchants,” such as casino ATMs, online betting platforms, and nightclubs. A standout case involved a military cardholder withdrawing nearly $11,000 from ATMs inside a Maryland casino in a single visit.

Senator Ernst and Representative Comer have emphasized a glaring lack of internal controls, noting that DoD officials responsible for overseeing purchase card programs failed to demonstrate any efforts to analyze transaction data, save money, or detect misuse. Their joint letter to Comptroller General Gene Dodaro underscores the gravity of the situation, highlighting transaction-splitting tactics that evade the $3,500 micro-purchase limit and thus, dodge scrutiny.

Although the Pentagon is at the epicenter of these latest revelations, Comer and Ernst believe the issue is pervasive across multiple agencies. They are urging the GAO to examine the