The Trump administration spent an estimated $9.5 billion on paid administrative leave for federal workers in the past year, according to a Government Accountability Office (GAO) report released Tuesday [1]. This surge in spending coincided with President Donald Trump's 2025 creation of the Department of Government Efficiency (DOGE), led by Elon Musk, which implemented mass firings and dissolved the U.S. Agency for International Development [1].
The GAO found that agencies’ use of paid administrative leave increased by 435% from 2023 to 2025, with salary costs rising sixfold during the same period [1]. A significant portion of the increased cost—about $6.7 billion—was attributed to a DOGE-era “deferred resignation program,” which allowed nearly 140,000 federal employees to opt for early resignation while still receiving pay through September 2025 [1]. The Office of Personnel Management (OPM) provided these participation figures, but the GAO noted that OPM does not have precise data on the actual costs of paid administrative leave used for workforce reduction efforts, as these are reported together with other types of leave [1].
The deferred resignation program was introduced shortly after Trump began his second term, with federal workers receiving a “Fork in the Road” email outlining their options [1]. At the time, White House press secretary Karoline Leavitt stated that workers unwilling to return to the office could choose a different career path and would receive a generous payout of eight months’ salary [1].
As a result of these workforce reduction measures, the federal workforce lost more than 271,000 employees as of July, including both voluntary and involuntary departures, according to OPM data [1]. The data also indicates that the federal workforce had grown every year from 2015 until Trump’s return to office in 2025 [1]. The White House did not immediately respond to requests for comment on the GAO report [1].
CONCLUSION
The GAO report highlights the significant short-term costs incurred by the Trump administration’s efforts to shrink the federal workforce, with $9.5 billion spent on paid leave and over 271,000 employees departing. While the administration aimed for long-term savings, the lack of precise cost tracking raises questions about the program’s overall efficiency and fiscal impact.