Federal Lawmakers Demand Reforms to Government Charge Cards After Casino Expenditures Exposed
Posted on: May 19, 2025, 01:30h.
Last updated on: May 19, 2025, 02:09h.
- Sen. Joni Ernst and Rep. James Comer want a probe into government spending
- Ernst and Comer are concerned about federal government charge cards
- Card records show transactions at casino ATMs and strip clubs
Two Republican federal lawmakers — United States Sen. Joni Ernst (R-Iowa) and Rep. James Comer (R-Kentucky) — are demanding that Comptroller General Gene Dodaro’s office carry out a comprehensive review of the issuance and management of government charge cards. The request comes after DOGE, or the Department of Government Efficiency, revealed that federal charges last year were incurred at “high-risk merchants,” including casino ATMs, strip clubs, and online gaming businesses.
In February, DOGE reported that there are more active federal government credit and debit cards than there are federal employees. The 4.6 million active cards were used for approximately 90 million unique transactions in the 2024 fiscal year, with spending totaling around $40 billion.
Ernst and Comer, the latter of whom chairs the House Committee on Oversight and Government Reform, believe there is a severe lack of oversight regarding the spending.
Audit Needed
In a letter to Dodaro dated May 16, Ernst and Comer say a thorough review of the charge card spending programs “is urgently needed” to identify systemic risks, eliminate inefficiencies, and restore accountability.
“To better understand the scope of this issue and to inform potential reforms, we request the Government Accountability Office conduct a comprehensive review of the issuance and management of government purchase, travel, fleet, and integrated charge cards and accounts across federal agencies subject to the Chief Financial Officers Act of 1990,” the federal lawmakers wrote.
Ernst and Comer cite a report from the Department of Defense (DoD) Office of Inspector General (OIG) that found 15,610 transactions at “known high-risk merchants.” They included casino ATMs, dating apps, bars, lounges, strip clubs, and nightclubs.
“We are skeptical these charges were for legitimate purposes or in service of the DoD’s mission for which the cards were issued,” the lawmakers stated.
It is indefensible for Department of Defense bureaucrats to waste tax dollars at clubs, casinos, and bars, racking up charges on Super Bowl Sunday, St. Patrick’s Day, Cinco de Mayo, and federal holidays,” said Ernst in separate remarks. “With Washington $36 trillion in debt, the last thing we need is bureaucrats maxing out their tab and sticking taxpayers with the bill.”
Other high-risk merchant charges were coded for sports betting, amusement parks, cruises, fortune tellers, golf courses, country clubs, massage parlors, cannabis, and vaping products.
Military Gambling Spending
In January, Casino.org reported that federal government-issued charge cards to military members were used at casinos, online sportsbooks, and internet gaming platforms. The DoD audit found that Defense Department cards were used to cover more than $500K in expenses linked to gambling, clubs, and booze.
The financial disclosure revealed that one service member withdrew almost $11K while visiting MGM National Harbor in Maryland near the nation’s capital. The unidentified service member made 21 ATM withdrawals during the visit. ATMs inside casinos have some of the highest transaction fees.
“This is not the first report DoD OIG has conducted in recent years, and the problem has not improved. This is because, as the DoD OIG has found, DoD officials have not effectively used policies, procedures, or anti-fraud systems such as the Visa IntelliLink Compliance Management system to effectively identify DoD government travel charge card abuse and fraud,” Ernst and Comer said.
Last Comment ( 1 )
Could Comer and Ernst be anymore dim bulbs than a black hole? The number of occasions of bogus charges may be high but absolute dollar amount of injury to Govt or credit card company is trivial Federal Govt Travel cards are MANDATORY for use by employees (and millions of military, reservists, & national guard) who go on Federal official business travel more than a trivial amount each year. The debts incurred using the cards are the LEGAL obligation of the card holder/user, not the Federal Govt. When a travel claim is processed, all legitimate and acceptable charges are directly reimbursed to the credit card company (not the card holder) by the Govt. Any "suspicious" charges are denied and the card holder must make good on them and appeal the denial. Charges that are bona fide bogus are a basis for revocation of the card, suspension without pay, and firing (I know someone who was indeed fired over a few hundred bucks). After being fired, the US Govt can withold the bogus amount from pay, including final separation payout, and credit card company can sue the card holder to force repayment. Travel cards also have all sorts of imposed limits that vary by agency, like maximum charges per day before next charge is rejected, denial of use for "training course" fees unless authorized on travel orders, charges in geographic areas distant from those authorized on travel orders. The implication that the Federal Govt is paying, or credit card company is absorbing bogus charges at casino's ,houses of prostitution, & for private expenses not authorized by official travel documents is 99% fake news propaganda. Almost no one can incur enough charges that are bogus that they cannot be repaid by deduction from pay while they are suspended or when being fired. Even some charges at "casinos" can be legitimate. I once took a course at a convention center in Atlantic City and had dinner at a casino's all-you-can-eat buffet (5 min walk from Holiday Inn {that was charging within Govt rate limit} & good deal for me & taxpayers)