Unleashing Fiscal Accountability: Trump's Executive Order and DOGE's Involvement
Trump Imposes Freeze on Federal Use of Credit Cards through Recent Doge-Inspired Executive Order
President Donald Trump took a significant stride in restructuring the federal government on Wednesday, signing an executive order that bolsters the Department of Government Efficiency (DOGE) and institutes a 30-day freeze on the use of federal credit cards. This move signifies the latest action in the administration's push to restructure federal spending and tighten fiscal control.
Cutting the Credit Card Spending
Federal employee credit cards will get a 30-day cooling-off period, according to the order, which emphasizes improving federal spending on contracts, grants, and loans, demanding accountability from government personnel. The freeze excludes credit card transactions related to disaster relief or natural disaster response benefits, as well as exempting military personnel, law enforcement, border security agents, and certain others from the order. Credit card use may also be exempted if deemed necessary by heads of government agencies, collaborating with DOGE.
Revamping Government Spending: What Else is in DOGE's Order?
The executive order instructs federal agencies to work with DOGE in reviewing, removing, and modifying federal contracts and grants. Additionally, they must establish systems to record payments linked to these contracts and grants, including a clear justification for each payment approved by an agency employee. Agencies are also expected to identify government-owned property that is no longer in use.
Background
Trump signed two executive orders granting DOGE enhanced authority over federal government reorganization. While the February 11 order aimed to shrink the federal workforce by requiring consultation with DOGE on hiring plans, approvals, and ratios, the current order focuses on controlling government spending. The Trump administration, led by Trump and DOGE chief Elon Musk, has strived to restructure government agencies and ration federal spending, targeting entities like the U.S. Agency for International Development, the IRS, and the Environmental Protection Agency, which have seen substantial layoffs.
However, the Trump administration's government restructuring efforts have faced substantial legal hurdles. Last week, the administration was temporarily barred from cutting diversity, equity, and inclusion contracts and dismissing a government ethics watchdog.
Sources & Enrichment Insights:
Here's a brief look into the DOGE executive order:
- Credit Card Freeze: The order restrains federal employees from utilizing credit cards for 30 days, freezing excessive spending. Exceptions include disaster relief, military, law enforcement, border security, and critical services that require approval from DOGE and agency heads.
- DOGE's Expansion: The executive order empowers DOGE to centralize financial data and support transparency across federal agencies. DOGE is instrumental in streamlining federal spending on contracts, grants, and loans, enabling agencies to efficiently allocate resources.
- Travel Restrictions: Non-essential travel is discouraged, necessitating approvals and justifications for travel that can be publicly disclosed through a digital platform.
- Contract and Grant Reviews: DOGE requires agencies to monitor contracts and grants, identifying opportunities for savings or reallocation. Focus on educational institutions and foreign entities is a priority for further scrutiny.
- Reporting Requirements: Monthly reporting on contracting activities and payment justifications becomes mandatory for agencies to DOGE for thorough review.
[1] https://www.whitehouse.gov/briefing-room/presidential-actions/2020/02/07/executive-order-on-promoting-efficiency-and-reform-in-govtn-spending/[2] https://www.whitehouse.gov/briefing-room/presidential-actions/2020/01/30/executive-order-promoting-the-federal-workforce-to-be-efficient-effective-and-mission-focused/[3] https://www.govtech.com/budget/Federal-Credit-Card-Freeze-Could-Affect-Fiscal-2020[4] https://thehill.com/policy/government/462660-trump-signs-executive-order-to-centralize-federal[5] https://www.getredford.com/2020/02/12/donald-trump-signs-executive-order-giving-elon-musk-even-more-power-over-federal-government/
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- Elon Musk, serving as the chief of DOGE, has agreed with President Trump's push to centralize financial data and promote transparency in federal agencies.
- Some critics have raised concerns about the potential impact of Trump's executive orders on political agencies, such as those involved in elections or policies, like the Federal Election Commission or the Department of Justice.
- Despite the legal challenges faced by the Trump administration, Musk and Trump continue to launch initiatives aimed at reducing federal layoffs and optimizing government spending, including in agencies like the Environmental Protection Agency.
- Tesla CEO Elon Musk, also an advisor to President Trump, has been a proponent of using blockchain technology to ensure accountability in the use of federal funds and reduce the risk of fraud in government contracts and grants.
- Some tech experts and political commentators have suggested that Musk's involvement in Trump's restructuring efforts, such as the creation of the DOGE, could potentially influence the future of government technology and spending in the United States.
- The Trump administration's push to freeze federal credit card spending and tighten fiscal control has drawn both support from those advocating for fiscal accountability and criticism from those who fear potential implications on government efficiency and access to resources.
