GAO Finds $9.5 Billion in Paid Administrative Leave in 2025
The federal government spent an estimated $9.5 billion paying employees who were not working in 2025, with roughly $6.7 billion of that total linked to the Department of Government Efficiency’s deferred resignation program, according to a Government Accountability Office report released Tuesday.
The congressional watchdog found that federal agencies’ use of paid administrative leave surged 435% from 2023 to 2025, while the associated salary costs rose sixfold. The GAO analyzed payroll data from 76 agencies representing about 95% of the civilian federal workforce.
The report provides the most detailed accounting to date of the short-term costs of the Trump administration’s efforts to shrink the federal government, an initiative led by tech billionaire Elon Musk. While the administration has touted billions in long-term savings, the GAO’s findings highlight the upfront price tag of those workforce reductions—a figure that the Office of Personnel Management, which oversees federal hiring and benefits, has acknowledged it cannot precisely calculate.
“OPM does not know the actual costs of the paid administrative leave used for workforce reduction efforts, including the deferred resignation program,” the GAO wrote, noting that such leave is reported alongside other types of general administrative leave. “To calculate long-term savings, OPM needs to know short-term costs of paid administrative leave used for these efforts.”
Key Numbers from the Watchdog Report
The GAO’s analysis found that the number of workdays of paid administrative leave reported jumped from about 4 million in 2023 and 4.4 million in 2024 to approximately 21.6 million in 2025. In 2023 and 2024, fewer than 600 federal employees were on paid administrative leave for more than 90 workdays; last year, that number soared to nearly 100,000.
Approximately 144,312 federal workers accepted the deferred resignation offer, according to the Office of Personnel Management. The program, announced in January 2025 via an email titled “Fork in the Road,” allowed employees to resign while continuing to receive full pay and benefits through September 30, 2025. The email mirrored a similar message Musk had sent to Twitter employees after acquiring the company, which he renamed X.
The federal workforce has shrunk by more than 271,000 employees as of July, according to OPM data, encompassing both voluntary and involuntary departures. The administration has claimed DOGE generated hundreds of billions in savings, but independent experts have questioned those figures; a separate GAO report in August found DOGE’s claimed $110 billion in savings was vastly inflated and riddled with errors.
Deferred Resignation Program: A Costly Path to Shrinking Government
The deferred resignation program was unveiled just days into President Donald Trump’s second term, offering roughly 2 million federal workers the option to leave their jobs while retaining pay and benefits for months. Then-White House press secretary Karoline Leavitt described the offer at the time as a “very generous payout of 8 months” for those who “don’t want to work in the office and contribute to making America great again.”
But the GAO’s findings suggest that the program, a cornerstone of DOGE’s cost-cutting agenda, carried substantial short-term expenses. The $6.7 billion spent on paid leave for deferred resignations represents about 70% of the total $9.5 billion in administrative leave costs for 2025. The report emphasized that its numbers are estimates and that the true costs may be higher or lower due to reporting limitations.
The report’s release comes as the federal government continues to grapple with the aftermath of DOGE’s mass firings and agency restructurings. The U.S. Agency for International Development, for example, was dissolved under DOGE’s direction, and some departments have since reversed cuts, rehiring workers and contractors to fill critical roles. Others are proceeding with plans to relocate staff out of Washington, D.C., to regional hubs—moves that could further affect attrition and spending.
OPM’s Data Gap and the Challenge of Measuring Savings
A central issue raised by the GAO is the lack of precise data on the costs of workforce reduction efforts. Because paid administrative leave for deferred resignations is not tracked separately from other types of leave, OPM cannot easily determine whether the program ultimately saved money. The GAO’s estimate of $6.7 billion is based on payroll data and assumptions about the number of employees who accepted the offer and the length of their paid leave.
The report notes that OPM “does not know the actual costs” and that “to calculate long-term savings, OPM needs to know short-term costs.” Without that information, the administration’s claims of savings remain difficult to verify. The White House did not immediately respond to a request for comment on the GAO report.
The federal workforce reductions have also drawn scrutiny from lawmakers and watchdog groups. The GAO’s August report on DOGE’s savings claims found that the administration had double-counted some savings and included questionable estimates, undermining confidence in its fiscal projections. The new report adds another layer of complexity to the debate over DOGE’s legacy.
Broader Implications: What the Report Means for Federal Workforce Policy
The GAO’s findings land amid an ongoing national conversation about the size and cost of the federal government. The Trump administration has argued that DOGE’s cuts are necessary to reduce waste and inefficiency, while critics contend that the rapid dismantling of agencies has disrupted essential services and created hidden costs.
The $9.5 billion figure for paid administrative leave in 2025 is a striking illustration of the trade-offs involved. While the deferred resignation program may have reduced the number of employees on the government payroll, it also required substantial upfront spending. Whether those costs are offset by long-term savings depends on factors such as the salaries and benefits of the workers who left, the cost of rehiring for critical positions, and the impact on agency operations.
The Road Ahead for Federal Workforce Reform
As the federal government continues to implement workforce changes, the GAO’s report underscores the need for better tracking of costs and savings. The office recommended that OPM improve its data collection to allow for more accurate assessments of workforce reduction efforts. Such transparency could be crucial as policymakers evaluate whether DOGE-style initiatives are effective or merely shift costs from one budget line to another.
The report also highlights the human dimension of the deferred resignation program. Nearly 140,000 federal employees opted to leave their jobs, many of them enticed by the promise of continued pay while they searched for new employment. For those workers, the program provided a financial cushion. For the government, it represented a significant short-term expense that may take years to recoup—if it is recouped at all.
With the federal workforce now smaller by more than 271,000 employees, the administration’s broader goal of reducing government headcount has been partially achieved. But the GAO’s findings suggest that the fiscal legacy of DOGE will be more complicated than the headline savings figures suggest. As the report makes clear, the true cost of shrinking government is not always easy to measure—and it may be higher than advertised.
The GAO’s full report is available on its website, and additional analyses of DOGE’s impact are expected in the coming months. For now, the $6.7 billion tied to deferred resignations stands as a reminder that even cost-cutting initiatives come with a price.
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