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Federal Workers Struggle as $1 Spending Cap Cripples Agencies and Research 

 March 13, 2025

By  Joe Habscheid

Summary: The Department of Government Efficiency (DOGE), created during the Trump administration, has implemented a highly restrictive $1 spending limit on federal employee credit cards, aiming to curb waste and fraud. While DOGE claims this will simplify spending oversight, federal workers report significant disruptions to essential operations. Agencies including the FAA, NIH, NPS, and FDA are struggling as employees can’t purchase necessary supplies, pay for services, or receive clear reimbursement policies. This move is part of DOGE’s broader push for zero-based budgeting and AI-driven workforce reductions, emulating Elon Musk’s cost-cutting strategies. While efficiency is the stated goal, the consequences have been far-reaching, crippling daily government functions and essential research.


Federal Employees Face Mounting Challenges

The $1 spending cap applies to both travel and purchase cards, which are essential tools for federal employees handling work-related expenses. These cards cover everything from office supplies and training programs to software licenses and field equipment. Stripping them of their flexibility means employees must now navigate an unclear and cumbersome reimbursement process—if such a process even exists.

Major agencies, including the Federal Aviation Administration, the National Institutes of Health, the National Park Service, and the Food and Drug Administration, have been particularly hard-hit. Researchers are unable to purchase crucial lab materials. Park workers can no longer cover recurring costs like internet and cell service. Many employees fear they could be personally financially responsible for necessary business expenses.


DOGE’s Zero-Based Budgeting Strategy

The spending restriction is part of DOGE’s larger push for zero-based budgeting, a method that resets all budgets to zero and forces agencies to justify every expense from scratch. Inspired by cost-cutting approaches commonly associated with Elon Musk, DOGE’s leadership argues this will eliminate waste and force greater financial discipline within government agencies.

However, this budgetary approach assumes that every expense can be pre-planned and explicitly defended. In reality, federal employees frequently encounter unanticipated needs—emergency repairs, last-minute travel requirements, and time-sensitive purchases that keep agencies operational. Without the flexibility to make these purchases promptly, government functions grind to a halt.


The AI Factor: AutoRIF and GSAi

Budget cuts aren’t the only way DOGE is restructuring the government workforce. The agency is actively working to automate certain jobs using artificial intelligence. One controversial tool in development is AutoRIF, a repurposed military software designed to assess employee performance and recommend layoffs. DOGE argues this system will streamline decision-making and improve efficiency, but critics warn that relying on AI for federal workforce reductions could lead to widespread job losses without careful oversight.

At the same time, DOGE is rolling out GSAi, a chatbot designed to handle administrative tasks for government workers. While this technology could theoretically free employees from tedious bureaucratic processes, there are growing concerns that it will eventually replace many human roles entirely.


An Efficiency Drive Gone Too Far?

Efficiency and accountability are reasonable goals for any government agency, but the aggressive measures DOGE is implementing are raising serious concerns. A $1 credit card limit may theoretically eliminate wasteful spending, but in practice, it is crippling essential services. Zero-based budgeting can help agencies reassess spending priorities, but the process ignores the realities of day-to-day operational needs.

Similarly, AI-driven workforce optimization could improve productivity, but without transparency and safeguards, it threatens job security for thousands of federal employees. The federal government is an institution built to serve the public, and when cost-saving initiatives interfere with its basic ability to function, the strategy must be reexamined.


DOGE’s strategy leans heavily on principles of rapid corporate-style restructuring, but government operations are vastly different from private enterprise. If the goal is to improve efficiency, officials must balance cost-cutting with practicality—before essential services unravel altogether.

#GovernmentReform #SpendingCuts #FederalWorkforce #AIinGovernment #PublicSectorEfficiency

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Featured Image courtesy of Unsplash and Element5 Digital (ls8Kc0P9hAA)

Joe Habscheid


Joe Habscheid is the founder of midmichiganai.com. A trilingual speaker fluent in Luxemburgese, German, and English, he grew up in Germany near Luxembourg. After obtaining a Master's in Physics in Germany, he moved to the U.S. and built a successful electronics manufacturing office. With an MBA and over 20 years of expertise transforming several small businesses into multi-seven-figure successes, Joe believes in using time wisely. His approach to consulting helps clients increase revenue and execute growth strategies. Joe's writings offer valuable insights into AI, marketing, politics, and general interests.

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