GAO: Paid Leave Costs $9.5B Amid Trump Cuts
GAO: Paid Leave Costs $9.5B Amid Trump Cuts
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Key Points
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The GAO found that reported paid-administrative-leave workdays rose from roughly 4 million in 2023 and 4.4 million in 2024 to about 21.6 million in 2025. The number of employees on leave for more than three months also jumped from about 600 in each of the prior two years to nearly 100,000 in 2025.
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The GAO’s analysis covered payroll data from 76 agencies, representing approximately 95% of the civilian federal workforce.
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The January 2025 offer was extended to roughly 2 million federal employees, who were told they could resign while retaining full pay and benefits through Sept. 30; OPM directed agencies to place participants on paid administrative leave until their departures.
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The administration’s claimed savings from DOGE remain disputed: Musk initially said the initiative could save $2 trillion, later lowered the target to $1 trillion, and DOGE’s website ultimately reported $215 billion in estimated savings—figures that had not been independently verified.
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Some agencies later reversed portions of the workforce cuts by rehiring workers and contractors for certain roles, even as the administration continued plans to relocate employees from Washington to regional hubs that could produce further attrition.
The federal government spent an estimated $9.5 billion on paid administrative leave in 2025, a 435% jump from 2023, according to Government Accountability Office analysis. About $6.7 billion funded the Trump administration's Deferred Resignation Program, which paid roughly 140,000 to 144,000 federal employees full salary and benefits through September if they agreed to leave federal service. The program was central to workforce cuts pursued by Elon Musk's Department of Government Efficiency.
The Government Accountability Office could not pinpoint exact savings because the Office of Personnel Management failed to separately track workforce-reduction leave from regular paid time off. OPM Director Scott Kupor claims the cuts will save $20 billion annually long-term. Critics, including Senator Patty Murray, say the program wasted taxpayer money and removed experienced workers who provide vital services to veterans and seniors.
Paid Leave Workdays Skyrocket Under DOGE Cuts
Paid administrative leave workdays exploded from 4 million in 2023 to 21.6 million in 2025. The number of federal employees on leave for more than three months rocketed from about 600 in prior years to nearly 100,000 in 2025, Government Accountability Office data shows. The analysis covered payroll records from 76 agencies, representing roughly 95% of the civilian federal workforce.
The $7 Billion Resignation Buyout Program
In January 2025, the Trump administration offered roughly 2 million federal workers a deal: resign and keep full pay plus benefits through September 30. Yahoo News reported that $6.7 billion went directly to workers who took this offer. Agencies were ordered to place participants on paid administrative leave until their formal departure dates. The program aimed to shrink the federal workforce without formal layoffs.
DOGE's Savings Claims Remain Unverified and Shifting
Elon Musk initially claimed his Department of Government Efficiency could save $2 trillion. He later cut that target to $1 trillion. DOGE's website ultimately reported $215 billion in estimated savings—none of which Yahoo News says have been independently verified. Meanwhile, some agencies began rehiring workers and contractors even as the administration pushed ahead with regional relocation plans that could force more attrition.
Critics Warn of Service Delays and Lost Expertise
Senator Patty Murray and other critics argue the program stripped agencies of experienced staff needed to serve veterans, seniors, and families. The Hill reports that service delays loom as agencies struggle to backfill critical roles. OPM Director Scott Kupor counters that one-time costs will be offset by long-term savings. The dispute reflects a core tension: whether rapid workforce cuts deliver promised savings or create operational damage.
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