Pentagon Credit Card Scandal Erupts—They Spent Money On THIS?

Ivan Cholakov

Top Republicans in Congress are demanding a full-scale investigation into the Pentagon’s abuse of taxpayer-funded charge cards, after new audits uncovered thousands of transactions at casinos, nightclubs, and bars—many of them on holidays and major sporting event weekends.

House Oversight Chairman James Comer (R-KY) and Senator Joni Ernst (R-IA) are now calling on the Government Accountability Office (GAO) to launch a comprehensive review of all federal charge card programs. The move comes in response to findings that show nearly two government charge cards are issued for every federal employee—and that more than $40 billion was charged to these cards last fiscal year alone.

“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,” Ernst said.

According to the Pentagon’s own inspector general, nearly 8,000 Defense Department card transactions occurred at “high-risk” locations, including casino ATMs. An additional 3,246 transactions were logged at bars and nightclubs. Many of these charges happened on days synonymous with excessive spending—New Year’s Eve, UFC fight nights, and federal holidays.

But it’s not just the Pentagon. Other federal agencies are reportedly plagued by the same issues. The GAO has repeatedly flagged agency failures to analyze spending data or enforce internal controls to prevent fraud and abuse.

Comer and Ernst’s letter to Comptroller General Gene Dodaro highlights just how broken the system has become. In one of the most concerning details, officials in charge of the Pentagon’s local purchase card program reportedly couldn’t provide a single example of using spending data to cut costs—even though the Office of Management and Budget has recommended it for years.

The problem is compounded by illegal “split purchases,” a widespread tactic where government employees divide large transactions to stay under the $3,500 threshold for micro-purchases. This evasion of federal rules allows staff to put significant expenses on charge cards without triggering oversight.

“American taxpayers shouldn’t be stuck paying for federal bureaucrats’ splurges on government-issued credit cards,” Comer said. “Tax dollars are meant to fund essential government services, not dating apps, nightclubs, or bar tabs.”

The lawmakers are also demanding that GAO examine how cards are issued, whether agencies are closing accounts when employees leave, and how often cards are used at sketchy vendors, including marijuana dispensaries and gambling websites.

In response to the scandal, the Department of Government Efficiency (DOGE), led by Elon Musk, has reportedly canceled 200,000 federal credit cards and launched a full audit of Pentagon spending. DOGE’s reforms include enforcing real-time tracking of all card usage and blocking transactions flagged as non-essential or abusive.

This isn’t the first time the federal government’s use of charge cards has come under scrutiny, but Republicans say the scale of this abuse demands serious consequences. “There should never be more credit cards than federal employees,” Ernst said. “It’s time to cut up the plastic and put a stop to the reckless spending.”

The GAO review, if implemented, could affect hundreds of agencies across the federal government and potentially result in the most sweeping charge card reform in decades. Conservatives argue it’s long overdue, especially with the national debt now exceeding $36 trillion.

With Biden’s bloated bureaucracy under fire and Trump’s allies pushing aggressive oversight, the issue of federal waste is once again front and center. And this time, Republicans say, the American people deserve accountability—not another round of excuses.