President Donald Trump on Wednesday signed an executive order that broadens the power of the Department of Government Efficiency and puts a freeze on the use of federal credit cards, marking the latest action by the Trump administration and DOGE to restructure and reduce federal spending.
The order broadens DOGE's power on government spending. (Photo by Alex Wong/Getty Images)
Credit cards held by federal employees will be frozen for the next 30 days, according to the order’s text, which noted the order seeks to transform federal spending on contracts, grants and loans to ensure accountability from government employees.
The freeze excludes credit cards with charges related to disaster relief or natural disaster response benefits, while members of the military, law enforcement and agents involved with border security efforts are exempt from the order.
Credit cards can also be excluded from the freeze if heads of government agencies, in consultation with DOGE, deem certain charges appropriate.
Get Forbes Breaking News Text Alerts: We’re launching text message alerts so you'll always know the biggest stories shaping the day’s headlines. Text “Alerts” to (201) 335-0739 or sign up here.
The executive order directs government agencies to consult with DOGE on the review, removal and modification of federal contracts and grants. It also asks agencies to build systems “to seamlessly record every payment” linked to contracts and grants “along with a brief, written justification for each payment submitted by the agency employee who approved the payment.” Additionally, agencies have been asked to identify government-owned property that is no longer needed.
Trump has signed two executive orders providing DOGE with more power over the federal government’s structure. While Wednesday’s order focused on government spending, the previous order, issued on Feb. 11, aimed to reduce the federal workforce by ordering agencies to consult DOGE on hiring plans, approvals and ratios. Trump and DOGE chief Elon Musk have sought to restructure government agencies and reduce federal spending, targeting agencies like the U.S. Agency for International Development, the IRS and the Environmental Protection Agency, which have all had significant layoffs. However, the Trump administration has faced several legal challenges to its government restructuring effort. The administration was temporarily blocked last week from cutting diversity, equity and inclusion contracts and from firing a government ethics watchdog.
Treasury Department Agree To Block DOGE From Personal Taxpayer Data, Report Says—Here’s What To Know (Forbes)
Here’s Where Trump’s Government Layoffs Are—EPA, FEMA, TSA And More (Forbes)
Major Lawsuits Against Trump And Musk: Judge Halts Trump’s DEI Contract Ban—For Now (Forbes)