More than 300,000 federal credit cards face immediate deactivation under a bold new plan. The U.S. Department of Efficiency (DOGE) aims to curb excessive costs and close accounts linked to inactive or suspicious activity.
The surprise decision targets accounts deemed redundant or abandoned within various government agencies. In total, DOGE has already identified over 300,000 credit cards at risk of cancellation, forming part of a larger movement to streamline public spending and strengthen oversight. Many officials and cardholders are now racing to confirm their eligibility before permanent deactivation takes place.
Why the U.S. Department of Efficiency is canceling over 300,000 credit cards now
The crackdown follows a five-week pilot audit that uncovered numerous irregularities, including accounts assigned to individuals no longer in public service. Elon Musk, now at the helm of DOGE, has called for heightened vigilance, emphasizing that tax dollars should never be wasted on dormant or fraudulent credit lines. Have you checked whether your government-issued card is still active? It might be time to do so.
Table showing distribution of canceled cards:
| Category | Approx. Cards Canceled |
|---|---|
| Inactive Accounts | 120,000 |
| Ex-employees or Deceased Holders | 80,000 |
| Suspicious Activity | 100,000 |
This audit began with an enormous pool of 4.6 million active accounts, handling nearly $40 billion in transactions during fiscal year 2024. Officials say cleaning up these accounts will reduce unnecessary expenses and reinforce the integrity of each transaction.
How Elon Musk plans to streamline government resources and reduce wasteful spending effectively
Musk’s approach includes tightening controls on new credit allocations. Under DOGE’s updated protocols, applicants must undergo rigorous identification checks before receiving a card. Musk has also demanded closer monitoring of SBA (Small Business Administration) loans—particularly regarding the borrower’s age—to prevent fraudulent claims made in the name of underage or deceased individuals.
The reform extends to other programs suspected of lax oversight or inflated budgets. According to DOGE representatives, cards linked to inactive departments or outdated initiatives will be terminated without delay. This massive cancellation marks the first step in a larger overhaul designed to ensure that every allocated dollar has a valid purpose.
What you must know about potential disruptions and how they could affect everyday taxpayers
Does this mean cardholders could face penalties? The answer is no, unless fraudulent activity is discovered. Still, some fear that urgent project funding may be temporarily halted. DOGE, however, insists that critical programs will remain intact and that any short-term issues will be resolved with proper verification. Below is a brief list of what officials recommend if you suspect your card could be canceled:
- Contact your agency’s finance department for card status updates.
- Review recent charges to confirm valid use.
- Submit current employment or affiliation documentation if requested.
By canceling these dormant cards, DOGE hopes to improve spending transparency and protect taxpayer money. Every official with an active card should verify their details and comply with new regulations to avoid disruption. The ultimate goal, according to Musk, is to root out financial inefficiency while guaranteeing the smooth functioning of essential services.