The DECLINE Act mandates federal agencies to immediately deactivate and reclaim government charge cards from separating employees and requires annual GAO oversight of compliance.
Joni Ernst
Senator
IA
The DECLINE Act mandates that federal agencies must immediately deactivate and collect all government charge cards from separating employees, including removing them from digital wallets. Agencies must establish clear policies to ensure these cards are returned and accounts are closed upon separation. Furthermore, the Government Accountability Office (GAO) will annually audit agency compliance with these new deactivation procedures.
DECLINE Act Mandates Immediate Deactivation of Federal Charge Cards When Employees Leave
When a federal employee quits, retires, or gets fired, what happens to their government-issued travel or purchase card? The Deactivating and Eliminating Cards Linked to Inactive or Nonexistent Employees Act—or the DECLINE Act—is designed to make sure those cards are shut down immediately, preventing potential misuse of taxpayer funds.
The Instant Card Shutdown Rule
This bill targets financial accountability inside federal agencies. It requires every agency’s top financial and HR officers to establish a strict policy within 30 days of the bill becoming law. This policy must ensure that the moment a "covered individual" (someone leaving federal service, including high-level executives) separates from the agency, their government charge card is rendered useless. That means the employee must physically hand the card over, remove it from any digital wallet (like Apple Pay), and the agency must immediately deactivate the account with the bank (SEC. 2).
Think of it like cutting off the credit line the second you walk out the door. The goal is simple: eliminate the window of time where a former employee might still be able to swipe a government card for personal use, intentionally or accidentally. This is a direct measure to tighten up financial controls and prevent waste. For the departing employee, it means one more mandatory, immediate step in the exit process—no more clearing out your desk and forgetting to turn in your travel card.
Accountability Check-Up: The GAO Audit
To make sure agencies aren't just filing the new policy away, the bill mandates serious oversight. The Government Accountability Office (GAO) will conduct an annual check-up, starting one year after the law is enacted. This isn't just a compliance check; the GAO reports must detail how many cards were issued and deactivated, how effective the agency's monitoring systems are at catching fraud, and the total amount the agency paid in late fees over the year (SEC. 2).
This annual audit is the teeth of the bill. It puts every agency on notice that their internal financial housekeeping will be scrutinized publicly. If an agency is constantly racking up late fees or failing to deactivate cards promptly, the GAO report will flag it for Congress. This adds a layer of transparency and external pressure that forces agencies to prioritize proper card management, which ultimately saves taxpayers money by reducing unnecessary fees and potential fraudulent charges.