Cost-cutting initiatives have placed restrictions on or canceled thousands of federal credit cards, which has left federal employees unsure of how to cover work expenses such as travel, supplies and small-ticket purchases. While agency credit access is limited, some federal workers may be tempted to use personal credit cards for work expenses and seek reimbursement later.
But financial and legal experts say that can be risky and urge caution. Read on to see the problems with using your credit card for government purchases — and what to do instead.
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Federal Credit Card Cuts
Billionaire Elon Musk’s Department of Government Efficiency has audited 16 federal agencies to deactivate “unused/unneeded” credit cards as part of its federal cost-efficiency initiative. To date, DOGE reports nearly 300,000 government credit cards have been canceled or reduced to a $1 credit limit.
Before the audit, DOGE reports, the U.S. government had about 4.6 million active credit cards. DOGE says federal credit cards accounted for about 90 million unique transactions and $40 billion in spending in 2024. The audit followed a 30-day credit card freeze placed by executive order from President Donald Trump on Feb. 26. The freeze applied to all credit cards held by agency employees, excluding cards and charges for disaster relief, disaster response or critical services approved by government agency heads in consultation with DOGE.
With limited credit card access, government workers have faced challenges attending scheduled conferences and meetings and purchasing basic supplies, as well as paying for lab equipment maintenance, utilities and repairs.
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Experts Advise Caution Using Personal Cards
If you’re a federal employee with a canceled or frozen government credit card and need to make purchases for work, you might be tempted to use your personal card and seek reimbursement. Private-sector employees routinely use personal cards for business-related expenses and get reimbursements — and it can be a great way to earn rewards with your card. However, experts advise caution if you plan to use your personal card for work expenses, whether you work for a company or a government agency.
“Putting work spending on personal credit cards can be a problem. It leads to the risk of delayed reimbursement and accrued interest for you,” says federal employment attorney Justin Schnitzer. “Additionally, high utilization of personal cards may lower your credit score. Finally, mixing work and personal expenses can complicate tax filings and audits.”
If you put expenses on your personal card and don’t get paid back, you could pursue a case against your employer for nonpayment of reimbursement. However, employment attorney Tom Spiggle says you could face costly delays while the credit card company seeks payment.
“Even though these are work expenses, the employee is still legally responsible for payment and any penalties for nonpayment,” says Spiggle. “While the employee likely could file a court case and have the employer ultimately found liable for the charges and any penalties, this could take months. In the meantime, the employee will be held liable by the credit card company.”
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How to Navigate Expenses Without a Government Credit Card
If your agency no longer provides you with a business credit card, you should seek alternative payment methods while protecting your personal finances. Check with your agency for guidance on paying for work expenses, which may include emergency spending authorizations. Using government payment methods for government expenses is always preferable.
Spiggle recommends asking agency human resources or finance departments about which payment options should be used to cover work expenses and any reimbursement policies. Some might allow for an advance on work expenses.
If you decide to use a personal credit card for federal work expenses, Spiggle recommends keeping detailed records of expenses. Using a card with a long interest-free grace period can give you time to resolve payment disputes.
Schnitzer also advises federal employees to carefully document all work expenses and submit reimbursement requests as soon as possible. He suggests opening a personal card solely for work expenses to simplify expense tracking.
But you might want to reconsider using your personal card for federal expenses. Jay Zigmont, founder and CEO of Childfree Wealth and a certified financial planner, says federal workers should refuse to put any expenses on their personal card in the current political environment.
“As with any business expenses, there is always a risk that it will not be approved, and you will be on the hook,” says Zigmont. “DOGE closed federal cards in an effort to stop paying for expenses, so there is no reason to expect them to pay expenses you put on your personal card.”
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DOGE Canceled Your Government Credit Card ? But Think Twice Before Using Your Own originally appeared on usnews.com
