DECLINE Act

Bill Number

S. 2794

Origin Chamber

Senate

Congress

119th Congress, Session 1

Policy Area

Government Operations and Politics

Status

Introduced

Latest Action

2025-09-11: Read twice and referred to the Committee on Homeland Security and Governmental Affairs.

Last Updated

2025-09-30T11:03:16Z

AI-Generated Summary

Purpose of the Legislation

The DECLINE Act (S. 2794) aims to improve accountability and security in the use of federal government charge cards by requiring agencies to create and implement policies for promptly deactivating these cards when employees leave their positions. This helps prevent potential misuse, fraud, or unauthorized charges after an employee departs.

Key Provisions

• Definitions:
• Agency: Refers to any executive branch department or agency as defined under U.S. law (5 U.S.C. § 5701).
• Charge card: Includes purchase cards, travel cards, or other federal payment cards issued by an agency and assigned to an employee.
• Covered individual: Any employee who is fired, resigns, retires, or otherwise stops working for the agency, including those in high-level roles such as positions listed in the Executive Schedule (e.g., cabinet-level officials), noncareer Senior Executive Service positions, or confidential/policy-determining roles under Schedule C.

• Required Policy for Deactivation:
• Within 30 days of the law's enactment, each agency's chief financial officer (or equivalent) must work with the chief human capital officer (or equivalent) to establish and put into effect a policy.
• As part of an employee's official exit process, the policy must ensure:

1. The employee returns the charge card to the agency.
2. Agency staff physically secure (e.g., lock away) the card.
3. The employee removes the card from any digital wallets or electronic devices (personal or agency-issued).
4. Agency personnel immediately deactivate the card and close or suspend its associated account following standard agency rules.
5. Agency personnel notify the issuing financial institution that the card is no longer valid for use or reissuance by that individual.

• Oversight by the Government Accountability Office (GAO):
• Starting one year after enactment and annually thereafter, the GAO must report to the Senate Committee on Homeland Security and Governmental Affairs and the House Committee on Oversight and Accountability.
• The report covers:
• Number of charge cards issued and deactivated by each agency.
• Strength of agencies' internal controls to monitor card use, detect misuse or fraud, and avoid issuing duplicate cards.
• Progress on implementing the new policy.
• Total late fees paid by each agency for charge cards in the prior year.
• How well agencies submit required management reports (e.g., on account activity, disputes, and unusual spending) via their bank's electronic system, including summaries for selected agencies.

Significant Changes to Existing Law

• This bill introduces a mandatory, standardized process for deactivating charge cards upon employee separation, which was not explicitly required before. It builds on existing federal guidelines for managing government purchase and travel cards but adds specific steps for the exit process and enhances GAO reporting requirements to include deactivation tracking, late fees, and electronic reporting compliance.
• It expands oversight to high-level officials (e.g., those in executive or policy roles), ensuring uniform application across the federal workforce.

Potential Impacts

• On Government Agencies: Agencies will need to update their human resources and financial procedures, potentially reducing risks of fraud or errors from inactive cards. This could lead to cost savings by minimizing late fees and improper charges, though initial implementation may require training and system updates.
• On Citizens: Taxpayers may benefit indirectly through better protection of public funds, as the law targets waste, fraud, or abuse in government spending. No direct impact on individual citizens' daily lives.
• On International Relations: No apparent effects, as the bill focuses solely on domestic federal operations.

Main Stakeholders Affected

• Federal Agencies: Primarily executive branch entities, including their financial and human resources officers responsible for policy implementation and compliance.
• Employees: Especially "covered individuals" leaving agencies, who must follow new exit procedures for returning and deactivating cards.
• Government Accountability Office (GAO): Tasked with conducting reviews and reporting to Congress.
• Congress: Specifically the Senate Committee on Homeland Security and Governmental Affairs and the House Committee on Oversight and Accountability, which receive GAO reports.
• Financial Institutions: Banks or entities issuing federal charge cards, as they will receive notifications about invalid cards and may need to adjust account management.

Notable Legal, Constitutional, or Political Implications

• Legal: Strengthens existing financial management laws (e.g., under the Federal Travel Regulation and purchase card guidelines) by mandating proactive deactivation to prevent liability from unauthorized use. It promotes compliance with broader federal accountability standards without creating new penalties, relying instead on existing agency procedures.
• Constitutional: No significant issues; the bill aligns with Congress's authority to oversee executive branch operations and appropriations under Article I of the U.S. Constitution.
• Political: Emphasizes fiscal responsibility and anti-fraud measures, potentially appealing to efforts to streamline government efficiency. Introduced by Senators Ernst, Blackburn, and Lee, it reflects bipartisan interest in reducing government waste, but its scope is narrow and administrative rather than transformative.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Sen. Ernst, Joni [R-IA]

Cosponsors (3)

Sen. Blackburn, Marsha [R-TN], Sen. Lee, Mike [R-UT], Sen. Scott, Rick [R-FL]

Recent Actions

• 2025-09-11: Read twice and referred to the Committee on Homeland Security and Governmental Affairs.
• 2025-09-11: Introduced in Senate

Bill Versions

• Deactivating and Eliminating Cards Linked to Inactive or Nonexistent Employees Act — issued 2025-09-11 — PDF (5 pages)