Sen. Joni Ernst and Rep. James Comer are demanding a sweeping review of the federal government’s use of charge cards after a recent audit revealed alarming levels of questionable spending by federal employees, particularly at high-risk locations such as casinos, bars, and nightclubs. The House Oversight Committee and the Senate have called on the Government Accountability Office (GAO) to launch a comprehensive review of all federal charge card programs.
Recent audits have uncovered systemic failures in oversight, with nearly two charge cards issued for each federal employee and over $40 billion in spending reported last fiscal year. The U.S. Department of Defense’s inspector general found nearly 8,000 credit card transactions at ‘high-risk locations’ in the past year, including casinos, bars, and nightclubs. Many of these transactions occurred during events like Super Bowl Sunday, St. Patrick’s Day, Cinco de Mayo, and New Year’s Eve. This has raised significant concerns about the misuse of taxpayer funds for personal expenses.
Ernst and Comer’s letter to Comptroller General Gene Dodaro highlights the need for improved controls and accountability, emphasizing that the current system allows for risky transactions and lack of oversight. The letter also points to the widespread use of ‘split purchases,’ where employees intentionally divide large transactions to avoid exceeding the $3,500 micro-purchase threshold, which is a clear violation of federal regulations. Despite this, the practice is said to continue due to inadequate monitoring and enforcement mechanisms.
Additionally, the letter demands the GAO investigate criteria for issuing charge cards, agency compliance with internal controls, the frequency of risky transactions at locations such as marijuana dispensaries, dating services, and gambling platforms, and whether agencies are appropriately closing accounts once employees leave government service. Furthermore, it notes the lack of analysis of card spending to reduce costs, despite long-standing recommendations from the Office of Management and Budget.
Ernst and Comer have stressed the urgent need for accountability and reform, stating that American taxpayers should not be responsible for funding personal expenses, such as dating apps, nightclubs, or bar tabs. They have called for a complete overhaul of how federal agencies manage charge card programs, which could have a significant impact on hundreds of federal agencies covered under the Chief Financial Officers Act.
The potential GAO review could lead to sweeping changes in how charge cards are issued and used, emphasizing the need for stricter enforcement and oversight to prevent misuse of taxpayer funds. As the debate continues, the issue of government spending transparency and accountability remains a central topic in the ongoing effort to ensure proper use of public resources.