Senate Returns P-Card Purchase Limits to Pre-Katrina Levels
The Senate has approved a measure coauthored by Homeland Security and Governmental Affairs Committee Chairman Susan Collins and Ranking Member Joseph Lieberman that will help reduce waste and abuse in federal expenditures.
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Senate Returns P-Card Purchase Limits to Pre-Katrina
Levels
The Senate has approved a measure coauthored by Homeland Security
and Governmental Affairs Committee Chairman Susan Collins and
Ranking Member Joseph Lieberman that will help reduce waste and
abuse in federal expenditures related to Hurricane Katrina.
The Senators legislation repeals a provision that was recently
signed into law related to micro-purchases by federal employees via
government-issued purchase cards. A provision in the second Katrina
supplemental spending bill increased the limit for such credit card
purchases from $2,500 to $250,000. The Collins-Lieberman bill
repeals this increase for normal, routine purchases and provides
for a $15,000 spending limit for emergency purchases. The measure
was approved unanimously by the committee earlier this month.
Over 300,000 federal employees have government purchase cards. A
spending limit of $250,000 opens the door to misuse and abuse of
these cards. We should not allow the needs of the disaster to trump
the need for oversight and accountability for the spending that
will occur by using these purchase cards. Wasting money does
nothing to help Katrina victims, said Senators Collins and
Lieberman.
The increase in the micro purchase-spending limit was originally
requested by the Bush Administration to help expedite relief
efforts during the immediate aftermath of Hurricane Katrina.
Senators Collins and Lieberman and others objected to the provision
at the time it was enacted, and recently the administration agreed
that keeping the higher spending limit in place leaves the system
vulnerable to waste, fraud, and abuse.
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