Government Efficiency Department Cancels Over 200,000 Unused Credit Cards Across Federal Agencies

The Department of Government Efficiency has made a significant move by deactivating over 200,000 credit cards associated with more than a dozen federal agencies. This action follows a thorough audit revealing that many of these cards were either unused or no longer necessary.

This latest announcement comes as the agency, under the leadership of Elon Musk, intensifies efforts to eliminate waste, fraud, and corruption within the federal government.

In a recent update on social media, the Department of Government Efficiency shared, “Weekly Credit Card Update! Pilot program with 16 agencies to audit unused/unneeded credit cards.” This reflects the agency’s commitment to fiscal responsibility and accountability.

After three weeks of intensive auditing, the Department disclosed that it has successfully deactivated 204,801 credit cards, which consisted of 171,120 travel cards and 33,681 purchase cards. Moreover, at the outset of this audit, there were over 4.6 million active credit cards registered across participating agencies.

Despite this progress, the Department acknowledged that much work remains to be done. The agency’s team noted, “So still more work to do.” This statement underscores the ongoing commitment to further streamline government spending.

As of now, the exact financial savings to taxpayers from these cancellations remains unclear. Earlier this month, the Department estimated that these 4.6 million credit cards facilitated around 90 million unique transactions, amounting to approximately $40 billion in spending during the fiscal year 2024.

Agencies Affected by Credit Card Cancellations

A total of 16 federal agencies have had credit cards deactivated through this initiative. The agencies include the General Services Administration, the Office of Personnel Management, the Labor Department, the Small Business Administration, the Education Department, the Treasury Department, the Environmental Protection Agency, the Agriculture Department, NASA, and the Department of Housing and Urban Development, among others.

Among these, the Department of the Interior reported the highest number of cancellations, with nearly 20,000 purchase cards and almost 40,000 travel cards terminated. The Department of Health and Human Services followed closely, with over 43,700 travel credit cards and 2,235 purchase cards canceled. Interestingly, the State Department was the only agency within the review that did not have any credit cards deactivated.

Seeking Financial Reforms amid National Debt Concerns

In a related context, Elon Musk recently addressed the need for financial reform during President Donald Trump’s first Cabinet meeting. Musk emphasized the agency aims to discover up to $1 trillion in savings to help reduce the national debt, which currently stands at approximately $36.5 trillion.

Musk has been vocal regarding what he perceives as unsustainable federal deficits, stating that the country could not maintain a debt of $2 trillion without dire consequences. “If this continues, the country will go, become de facto bankrupt,” Musk declared. His statements reflect a growing concern about the health of the U.S. economy.

Addressing Irregularities in Loan Distribution

In addition to the removal of credit cards, the Department of Government Efficiency also uncovered significant irregularities concerning loans. Over the weekend, it identified cases where more than $300 million in loans had been granted to minors.

In particular, the Small Business Administration had reportedly issued nearly 5,600 loans, totaling $312 million, to individuals whose listed ownership indicated they were as young as 11 years old at the time of the loan approval. These loans were distributed during 2020 and 2021 amidst the challenges of the COVID-19 pandemic. However, the intended use of these funds remains unclear.

Looking Ahead: A Commitment to Government Accountability

The recent actions taken by the Department of Government Efficiency demonstrate a commitment to ensuring accountability and reducing unnecessary federal spending. With the cancellation of over 200,000 credit cards and the revelation of questionable loan practices, the agency aims to foster transparency and efficiency within federal operations.

As the Department continues its efforts, public eyes will remain focused on how these measures affect overall government spending and taxpayer savings. The move not only highlights the potential for impactful budget cuts but also emphasizes the importance of systematic audits in enhancing governmental efficiency.

Reported by Fox News’ Andrea Margolis and Michael Lee.