The U.S. House and Senate have launched a joint investigation after evidence emerged that federal workers have blown a staggering $40 billion in taxpayer funds using government-issued credit cards.
House Oversight Committee Chairman Rep. James Comer (R-KY) and Sen. Joni Ernst (R-IA) have launched a joint inquiry into the alarming federal government spending.
The shocking discovery was made after a Department of Defense (DoD) audit revealed billions in unmonitored credit card transactions.
Some of the transactions were made at casinos, nightclubs, cruise lines, and other high-risk vendors.
Meanwhile, hard-working American taxpayers have been left paying the bill.
In a letter sent Friday to U.S. Comptroller General Gene Dodaro, Comer and Ernst requested detailed information about the oversight and use of government-issued credit cards across federal agencies.
The letter cited a Department of Governmental Efficiency (DOGE) audit.
The audit identified a staggering 4.6 million active federal charge cards and accounts.
During the last fiscal year alone, these accounts were used to spend a whopping $40 billion in taxpayer funds.
Comer and Ernst expressed concern over what they say is a lack of modern oversight tools in government agencies to detect or prevent wasteful or fraudulent purchases.
According to the letter, DoD officials responsible for monitoring these purchases were unable to provide clear examples of how they tracked spending or flagged misuse.
“This lack of oversight is further underscored by a recent DoD Office of Inspector General (OIG) report, which found 7,805 transactions at known high-risk merchants, including casino ATMs and mobile application stores,” the letter stated.
“The report also found 3,246 purchases made at ‘Bars, Lounges, Discos, Nightclubs, and Taverns-Alcoholic Drinks merchants’ during holidays or major sporting events.
“We are skeptical these charges were for legitimate purposes or in service of the DoD’s mission for which the cards were issued.”
Beyond the transactions flagged by the OIG, Comer and Ernst are now requesting a comprehensive accounting of government credit card charges linked to:
- Cruise lines
- Lottery ticket purchases
- Wigs and toupees
- Weight loss programs
- Jewelry
- Horoscopes and fortune telling
- Boats and campers
- Golf and country club memberships
- Amusement parks
- Bail bond services
The lawmakers acknowledged that certain expenses, such as bail bonds, may have some justification in specific law enforcement scenarios.
However, they raised concerns that federal credit cards are increasingly being misused for personal or entertainment expenses at taxpayer expense.
The ongoing review follows growing scrutiny of federal spending practices as lawmakers push for greater accountability and transparency in the use of public funds.
Comer and Ernst are requesting that the Government Accountability Office (GAO) and the Office of Management and Budget (OMB) work together to produce a detailed report on agency credit card usage and internal controls.
The agencies have been asked to outline any disciplinary actions taken when misuse is identified.
They are also seeking information on whether departments and agencies have implemented fraud detection tools or auditing mechanisms in line with private sector best practices.
Comer has led multiple investigations into federal agency conduct.
He has emphasized the need to restore public trust in the government’s stewardship of taxpayer money.
In a statement accompanying the letter, Comer said:
“Hardworking Americans deserve to know that their tax dollars are not being wasted on luxury purchases or personal entertainment by bureaucrats.”
The House Oversight Committee is expected to hold hearings on the matter later this year.
Both Comer and Ernst indicated that additional subpoenas may be issued if agencies fail to comply with information requests.
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