Republicans Call for Investigation into DOD’s Taxpayer-Funded Spending at Casinos, Bars and Nightclubs

House Oversight Chairman James Comer from Kentucky and Senator Joni Ernst from Iowa are calling for an investigation into federal charge card use at the Department of Defense. They found thousands of charges on DOD-issued cards at places such as casinos, bars, and nightclubs, made with taxpayer money.

The two lawmakers sent a letter to Comptroller General Gene Dodaro. Their letter requests that the Government Accountability Office (GAO) start a full review of all federal charge card programs.

Recent audits found nearly two federal charge cards exist for each government employee. Last fiscal year, these cards were used for more than $40 billion in purchases.

Over the last year, the Pentagon’s inspector general counted nearly 8,000 Department of Defense credit card transactions at high-risk locations, like casino ATMs. Another 3,246 charges took place at bars and nightclubs. Many of these happened during federal holidays and major events, including Super Bowl Sunday, St. Patrick’s Day, UFC 300, Cinco de Mayo, and New Year’s Eve.

Senator Ernst said DOD employees spent tax money in clubs, casinos, and bars, with charges racking up on special dates and holidays, which cannot be justified.

Other federal agencies have similar issues. The GAO has reported that agencies often fail to use available tools for monitoring purchase card use and stopping fraud.

Washington has a national debt of $36 trillion. Comer says, with debt so high, the public cannot afford to cover bills from overspending government workers. He insists that the number of federal charge cards should never be higher than the number of federal employees. His goal is to build stronger accountability across all government agencies.

Their letter describes the illegal practice called “split purchases.” Government workers sometimes break up a large purchase into smaller ones, which keeps each transaction under the $3,500 micro-purchase limit—the largest single amount allowed on a federal charge card. Though splitting purchases is against federal rules, audits find these violations continue because oversight is weak and agencies do not enforce the law.

Ernst and Comer want the GAO to examine how agencies decide who gets a card, if agencies use proper controls, and how often risky transactions happen. Their request mentions spending at marijuana dispensaries, dating services, and gambling platforms. The lawmakers also want to know if agencies close charge card accounts when their employees leave.

Auditors found that not a single purchase card manager at the Department of Defense could show an example of using data analysis to cut card costs, even though the Office of Management and Budget recommended this years ago. Ernst states she is pushing for reform to stop careless spending and says it’s time to cancel cards not used for real needs.

If the GAO review goes forward, it may affect hundreds of agencies under the Chief Financial Officers Act. Such a review could change how federal employees use government-issued charge cards and bring large reforms.

Comer says taxpayers should not carry the cost of government worker spending on things like bar tabs, club visits, or dating apps. Taxpayer money, according to him, needs to be reserved for essential government services — not for personal or luxury charges.

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