White House returns purchase card limits to pre-Katrina levels
Need for heightened threshold has passed, OMB says.
The Office of Management and Budget announced Monday that limits on emergency government credit card purchases will return to pre-Katrina levels.
In the wake of Hurricane Katrina Congress raised the threshold for emergency micropurchases-generally made using government-issued credit cards--to $250,000 from $15,000. The move, requested by OMB and meant to cut red tape and expedite relief efforts, prompted concerns about heightened vulnerability to waste, fraud and abuse.
"In the first days after the hurricane, several regulations were streamlined to remove barriers to the quick delivery of needed, life-saving aid," said Clay Johnson, OMB's deputy director for management, in a statement. "As the recovery has advanced, we do not envision that agencies will need to utilize the higher thresholds."
The limits are once again $2,500 for regular purchases and $15,000 for emergency purchases, OMB announced in a memorandum to agency heads. Agencies can ask OMB's permission to exceed the emergency threshold in "exceptional circumstances."
Legislation introduced in the Senate would codify the changes and has the administration's backing.