Breaking: $1 spending limit on federal purchase cards hampers agency operations

The Trump administration has imposed a $1 spending limit on government-issued purchase cards, effectively freezing their use for routine expenses over a thirty-day period, reports the Wall Street Journal. This measure, part of adviser Elon Musk's DOGE initiative, aims to curtail government spending but has led to significant operational disruptions across federal agencies.​

GSA confirmed the restriction, stating that it is a "commonly used risk mitigation best practice" to prevent fraud and abuse. GSA has implemented a review and approval process to ensure that mission-critical purchases can still be made in a timely manner.

Despite these provisions, many federal employees report challenges in performing essential tasks. At NOAA, scientists are unable to order equipment needed for ship and radar repairs. Similarly, FDA faces delays in procuring basic laboratory supplies, hindering its ability to analyze food and drug samples.

The National Park Service has canceled trips essential for overseeing maintenance work, and the Department of Agriculture has expressed concerns about potential delays in mission-critical projects. An official from FAA noted difficulties in making necessary purchases for government business, leading managers to seek exemptions to unfreeze credit cards needed for technology upgrades

Critics argue that the spending limit increases bureaucracy and hampers efficiency. Representative Suhas Subramanyam (D., Va.), representing over 30,000 federal workers, stated that DOGE's actions are "about control over federal workers and institutions and revenge over political opponents," rather than eliminating waste and abuse.

The $1 spending limit is part of a broader effort by the Trump administration to reduce federal spending. An executive order signed on 26 February 2025 mandates agencies to establish centralized systems to record and justify payments, promoting transparency and accountability.