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FIRST ON FOX: In a bold move, House Oversight Chairman James Comer, R-Ky., and Senator Joni Ernst, R-Iowa, are pushing for substantial reforms regarding how the federal government utilizes charge cards. Their demand comes in light of alarming revelations that indicate misuse of taxpayer dollars at venues such as casinos, bars, and nightclubs by the Department of Defense.
In an official letter directed to Comptroller General Gene Dodaro, Ernst and Comer have called on the Government Accountability Office to conduct a thorough assessment of all federal charge card programs. This significant request stems from troubling audit findings pointing to systemic failures within oversight mechanisms.
The audits uncovered the troubling issuance of nearly two charge cards per federal employee, along with an astounding $40 billion in spending recorded last fiscal year alone. Aside from the substantial total, the Pentagon’s inspector general reported nearly 8,000 Defense Department credit card transactions at locations deemed high-risk, including casino ATMs, over the previous year.
Furthermore, an additional 3,246 transactions were recorded at various bars and nightclubs. Many of these charges occurred during federal holidays and significant events like Super Bowl Sunday, St. Patrick’s Day, Cinco de Mayo, and New Year’s Eve.
Senator Ernst expressed strong disapproval, stating, “It is indefensible for Department of Defense bureaucrats to waste tax dollars at clubs, casinos, and bars, racking up charges on Super Bowl Sunday, St. Patrick’s Day, Cinco de Mayo, and federal holidays.” Ernst’s comments reflect growing frustration over government spending practices.
The concerns raised by Ernst and Comer highlight that the DOD is not an isolated case. Recent GAO reports indicate that various agencies frequently fail to employ necessary tools to scrutinize purchase card data effectively and prevent fraudulent activities. These failures include not adequately monitoring how charge cards are used, contributing to ongoing risks of financial mismanagement.
Comer emphasized the need for improved oversight, remarking, “With Washington’s $36 trillion in debt, the last thing we need is bureaucrats maxing out their tab and sticking taxpayers with the bill. There should never be more credit cards than federal employees, and I’m working to create accountability government-wide.” His assertion underscores the urgency for reform in federal spending habits.
Another concerning issue highlighted in the letter involves the practice of “split purchases.” This illegal tactic occurs when government employees intentionally divide large purchases into smaller transactions to evade the $3,500 micro-purchase threshold, which is the maximum allowable charge on a federal credit card. Such actions violate federal regulations but reportedly continue due to insufficient monitoring and enforcement mechanisms.
Ernst and Comer’s request urges the GAO to explore the criteria used for issuing cards, evaluate agency compliance with established internal controls, analyze the frequency of risky transactions—which could include purchases at marijuana dispensaries, gambling establishments, and dating services—and assess whether agencies are promptly closing accounts of employees who have left government service.
In a particularly scathing remark, the lawmakers revealed that no local purchase card program officials at the DOD could demonstrate the analysis of card spending aimed at cost reduction. This comes despite longstanding recommendations from the Office of Management and Budget advocating for better spending oversight.
Ernst reiterated her intent for reform, stating, “I’m working to create accountability government-wide. It’s time to cut up the plastic and put a stop to the reckless spending.” A shift in these practices could potentially lead to a significant overhaul of policies surrounding government-issued charge cards.
If initiated, the GAO review could impact every federal agency encompassed under the Chief Financial Officers Act. It holds the potential to restructure how federal employees utilize government-issued charge cards, thereby increasing accountability and transparency in spending.
Comer concluded with an impassioned statement, asserting, “American taxpayers shouldn’t be stuck paying for federal bureaucrats’ splurges on government-issued credit cards. Tax dollars are meant to fund essential government services, not dating apps, nightclubs, or bar tabs.” This sentiment captures the core of the ongoing discussions surrounding reform in federal spending practices.
The push by Comer and Ernst reflects the growing concern over the management of government resources. As these lawmakers advocate for reform, the accountability of taxpayer-funded expenses remains a vital conversation among legislators.
