Republicans demand probe into DOD’s taxpayer-funded charges at casinos, bars and nightclubs

FIRST ON FOX: House Oversight Chairman James Comer, R-Ky., and Sen. Joni Ernst, R-Iowa., are demanding sweeping reforms to the federal government’s use of charge cards after thousands of highly questionable charges were uncovered at the Department of Defense, including at casinos, bars and nightclubs using taxpayer dollars.

In a letter addressed to Comptroller General Gene Dodaro, Ernst and Comer called on the Government Accountability Office (GAO) to launch a comprehensive review of all federal charge card programs.

The demand follows alarming findings from recent audits that point to systemic failures in oversight, including the issuance of nearly two charge cards per federal employee and more than $40 billion in spending last fiscal year alone.

The Pentagon’s inspector general found nearly 8,000 Defense Department credit card transactions at "high-risk locations" – including casino ATMs – over the past year. An additional 3,246 transactions occurred at bars and nightclubs, many of them on federal holidays, Super Bowl Sunday, St. Patrick’s Day, the day of UFC 300, Cinco de Mayo and New Year’s Eve.

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"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.

The DOD is not alone. Recent GAO reports have found agencies consistently fail to use tools to analyze purchase card data and prevent fraud, the letter notes. 

"With Washington $36 trillion in debt, the last thing we need is bureaucrats maxing out their tab and sticking taxpayers with the bill. There should never be more credit cards than federal employees, and I’m working to create accountability government-wide."

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The letter also highlighted the illegal practice of "split purchases," where government employees intentionally divide large transactions to stay under the $3,500 micro-purchase threshold – the largest purchase that can be put on a federal charge card. Despite being a clear violation of federal regulations, these practices reportedly continue due to inadequate monitoring and enforcement.

Ernst and Comer's request urges the GAO to investigate criteria for issuing cards, agency compliance with internal controls, the frequency of risky transactions – including at marijuana dispensaries, dating services, and gambling platforms – and whether agencies are appropriately closing accounts after employees leave government service.

In a particularly damning detail, the lawmakers noted that no local purchase card program officials at the DOD could provide examples of analyzing card spending to reduce costs, despite long-standing recommendations from the Office of Management and Budget to do so.

"I’m working to create accountability government-wide. It’s time to cut up the plastic and put a stop to the reckless spending," said Ernst. 

The GAO review, if initiated, could affect hundreds of federal agencies covered under the Chief Financial Officers Act and could lead to a sweeping overhaul of how federal employees use government-issued charge cards.

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