The White House has issued a new order aimed at transforming federal spending on contracts, grants, and loans to enhance transparency and accountability. This initiative is part of the President's "Department of Government Efficiency" (DOGE) cost-efficiency strategy.
According to the order, each agency head must collaborate with their DOGE Team Lead to develop a centralized system for recording payments made under covered contracts and grants. These systems will require written justifications from approving employees for every payment. If an employee fails to submit this justification, the system allows the agency head to pause and review the payment.
The order mandates that agencies review all existing contracts and grants, focusing on reducing federal spending or reallocating funds to improve efficiency. This process is set to prioritize educational institutions and foreign entities for potential waste, fraud, and abuse reviews.
Furthermore, each agency must conduct a comprehensive review of its contracting policies and procedures within 30 days. During this period, new contracting officer warrants will not be issued unless deemed necessary by the agency head.
In addition to contract reviews, non-essential travel funded by federal resources will now require written justification before approval. These justifications are intended for public posting unless legally restricted or exempted by an agency head.
Agency credit cards are effectively frozen for 30 days post-order issuance unless used for disaster relief or other critical services as determined by the respective agency heads.
Real property management also forms part of this directive. Agencies have been instructed to update inventories within seven days and identify termination rights in real estate leases within 30 days. A plan for disposing unnecessary government-owned real property must be submitted within 60 days.
Certain exclusions apply to law enforcement officers, specific immigration-related activities, uniformed services, classified information systems, and any exemptions granted in writing by relevant agency heads.
The order emphasizes adherence to existing laws without affecting legal authorities or creating enforceable rights against the U.S. government or its entities.
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