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Elon Musk’s $1 Spending Limit Is Paralyzing Federal Agencies

Mar 3, 2025 5:24 PM

Elon Musk’s $1 Spending Limit Is Paralyzing Federal Agencies

The DOGE-mandated credit card freeze is delaying shipments of critical supplies, stalling travel, and stopping employees from doing their jobs.

BROWNSVILLE TEXAS NOVEMBER 19 Elon Musk speaks with U.S. Presidentelect Donald Trump at a viewing of the launch of the...

Donald Trump speaks with Elon Musk at a viewing of the launch of the sixth test flight of the SpaceX Starship rocket in Brownsville, Texas, in November.Photograph: Brandon Bell/Getty Images

Last month, the Trump administration placed a $1 spending limit on most government-issued credit cards that federal employees use to cover travel and work expenses. The impacts are already widely felt.

At the National Oceanic and Atmospheric Administration, scientists aren’t able to order equipment used to repair ships and radars. At the Food and Drug Administration, laboratories are experiencing delays in ordering basic supplies. At the National Park Service, employees are canceling trips to oversee crucial maintenance work. And at the Department of Agriculture and the Federal Aviation Administration, employees worry that mission-critical projects could be stalled. In many cases, employees are already unable to carry out the basic functions of their job.

“The longer this disruption lasts, the more the system will break,” says a USDA official who was granted anonymity because they aren’t authorized to speak to the media about the looming crisis.

A researcher at the National Institutes of Health who tests new vaccines and treatments in rodents says he has had to put experiments on hold; his lab is not able to get certain necessary materials, such as antibodies, which are needed to assess immune response. “We have animals here that are aging that will pretty soon be too old to work with,” says the researcher, who requested anonymity as they aren’t authorized to speak publicly about the agency. Young mice and rats that are 6 to 8 weeks old are typically used for drug and vaccine studies, but some of the animals in their lab have now aged out of that window and may have to be euthanized.

They say NIH workers have been using internal listservs to ask for reagents and lab equipment from other buildings or institutions to try to compensate for shortages, but they’re not always able to track down what they need. The NIH is made up of 27 institutes and centers, and its Bethesda, Maryland, campus is spread across more than 75 buildings. “Sometimes you need something that's really niche, and you're just not going to find it from someone else on campus,” they say.

The change comes as Elon Musk’s so-called Department of Government Efficiency continues to hunt for alleged examples of waste across the federal government. Late last month, DOGE announced that it was working to “simplify” the government’s largest credit card program, which issues GSA SmartPay travel and purchase cards for federal employees. Last Wednesday, the agency claimed 24,000 cards had been deactivated.

The credit card program allows federal workers to bypass the typical procurement process required to buy goods and services. A 2002 report from the Department of Commerce said that, “by avoiding the formal procurement process, GSA estimates the annual savings to be $1.2 billion.” It also enables federal employees to avoid paying sales tax on expenses that the government is exempt from.

At the FDA, labs that analyze samples to ensure that food, drugs, medical devices, and cosmetics are safe and meet regulatory standards are already facing shortages. "While we are always acutely aware of when Congress’ funding is going to run out, we are able to order supplies to keep things going in the lab. This abrupt ending felt like the rug was being pulled out from under us," says an employee at the FDA who requested anonymity because they aren't authorized to speak with the media.

The employee recently placed an order for pipette tips, an essential laboratory supply, but found that order was put on hold. "Now we are running out, asking colleagues at other offices to share what they might not be using,” they told WIRED.

In addition, workers say FDA labs now have to go through a lengthy process to order liquid nitrogen, which is used to keep ultra-cold freezers running. These freezers preserve samples of cells and other biological material that reflect years, and sometimes decades, of research. Delays in getting liquid nitrogen tanks could destroy that material. Previously, new tanks could usually be acquired the same day as putting in a request. Now, it takes a week or so to receive a tank after initiating a request.

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An employee at the Environmental Protection Agency says her facility is not able to place regular orders of liquid nitrogen at the moment. “We have dozens of these freezers full of important environmental samples that are imminently at risk of being lost because we can no longer get our regular shipments of liquid nitrogen,” says the employee, who requested anonymity. These samples are used as part of research on detection and remediation methods for chemicals such as PFAS, which are found in many products and break down very slowly over time.

“Scientists are being forced to jerry-rig the connection points on these freezers to accept pressures of liquid nitrogen they were not designed to handle,” the employee says. “Divisions are resorting to bartering with each other to obtain needed items.”

The FDA and EPA did not immediately respond to a request for comment from WIRED.

The credit card freeze also means that federal researchers who were working on scientific manuscripts can’t pay journal fees, meaning they can’t submit their work to certain journals for publication.

An employee at a federal forensics lab told WIRED that spending limits mean the lab is no longer able to pay to ship evidence back to agents, effectively halting its ability to do casework. Before a case goes to trial, defendants have the right to access and review evidence that the prosecution intends to use against them, which includes access to the evidence in their case. Defendants are able to send that evidence to an outside lab for analysis if they choose. “Cases can’t progress until we return the evidence,” says the forensics lab worker, who asked to remain anonymous. “I basically can’t do my job right now.”

NIH employees were told that travel cards could not be used at all for 30 days, forcing scientists to cancel plans to attend a major infectious disease conference next week. USDA employees at the Pest Identification Technology Laboratory have stockpiled reagents used for molecular tests in advance of the spending limits, according to the USDA official.

FAA employees who travel to work on and test aviation systems worry the credit card freeze will prevent them from completing their projects. “We are allowed to use our personal cards in emergencies but none of us trust them to pay us back now,” says one employee.

The impacts have hit the National Park Service as well. One employee was poised to go on a trip to oversee road maintenance at a national monument when the change went into effect on February 20. “Unless I want to pay for it myself, I can’t go. I can’t pay for my hotel, my rental car, fuel for the car. Now I can’t carry out the mission,” the employee says. “Today, instead of focusing on other work, I’m focused on three different contingencies on how to handle this. Do I go? Do I call my engineering team and tell them to reschedule? And if so, when? The project is on an indefinite hold.”

A memo written to staff at the National Park Service specified that “all travel that is NOT related to national security, public safety, or immigration enforcement should be canceled if it begins on Wednesday, February 26, through the end of March 2025.” A long-term decision on the travel policy, it said, will come “at a later date.” Some NPS staffers were able to travel in February despite not getting official clearance. They have now been told no travel will be allowed in March. To date, roughly 75 trips have been canceled or rescheduled, according to a source familiar with the situation.

The National Park Service did not respond to a request for comment from WIRED.

Some government employees say they were given a warning prior to the change being announced on February 20. “We went out and bought cases and cases of toilet paper the night before,” another current employee at the National Park Service says. “There’s a general acknowledgement that things are going to break.”

That employee works in the Pacific West Region, which manages federal land in California, Hawaii, Oregon, Washington, Idaho, and Nevada, as well as parks in Arizona, Montana, Guam, and American Samoa. While the GSA did allow for the possibility of exceptions to the clamp-down, the employee claims there are only four purchase cards with spending limits above $1 available for the entire region.

Some of these parks pay for services like internet and wireless on purchase cards—leaving staffers wondering if their work devices could soon be cut off. “Before someone can fix a bathroom a work order has to be issued,” the current employee explains. “That happens electronically. Like any business, we rely on email, Teams, and chat to get things done.”

The spending limits reflect Musk’s belief in zero-based budgeting. After he purchased Twitter, he slashed the budget to zero and forced employees to justify every expense. He also froze people’s corporate credit cards.

“With the Twitter pausing of payments, at some point we were in a meeting at 1 am on a Saturday, and it was like, ‘Hey, let's turn the credit cards off to see what bounces, and what happens,’" explained angel investor Jason Calacanis on the All In podcast in February. (Calacanis was part of Musk’s transition team at Twitter.) “And of course, we started getting calls … The people who come first, they're probably the ones who are in on the biggest grift.”

Employees see it a different way. “There are so many controls in place to make sure fraud doesn’t happen,” alleges the current NPS staffer. “I honestly believe the only fraud occurring is being committed by Musk, [Russell] Vought, and [Donald] Trump.”

Kate Knibbs and Aarian Marshall contributed to this reporting.

Emily Mullin is a staff writer at WIRED, covering biotechnology. Previously, she was an MIT Knight Science Journalism project fellow and a staff writer covering biotechnology at Medium's OneZero. Before that, she served as an associate editor at MIT Technology Review, where she wrote about biomedicine. Her stories have also … Read more
Staff Writer

Zoë Schiffer oversees coverage of business and Silicon Valley at WIRED. She was previously managing editor of Platformer and a senior reporter at The Verge. … Read more
Director, Business and Industry

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