Trump Admin DOGE Sees Federal Paid Leave Increase 435% As Cost Hits $9.5 Billion in 2025, GAO Says; review key findings | Today’s news

The U.S. government spent an estimated $9.5 billion last year paying federal employees who were placed on administrative leave, according to a new estimate from the Government Accountability Office (GAO). The spending came as the Trump administration sought to reduce the size of the federal workforce and reduce government spending.

The GAO said the cost of salaries paid during the administrative leave was roughly six times higher than in 2023.

The report also found that federal agencies increased their use of administrative leave by 435% last year. Much of the increase was related to the deferred resignation program supported by the Department of Government Efficiency (DOGE), an initiative led by billionaire Elon Musk. Administration officials have previously said the program will result in billions of dollars in taxpayer savings.

The program, offered mainly during the first months of Donald Trump’s second presidency, allowed federal employees to agree to resign while remaining on paid leave for several months. They were reportedly not required to perform their duties during this period, the measure being intended to encourage workers to participate. Some federal agencies presented the offer more than once, and participation increased in subsequent rounds as the administration’s plans to restructure the federal workforce became more apparent and concerns about job security grew.

OPM disputes GAO estimate, says workforce cuts will result in $40 billion in annual taxpayer savings

The GAO estimated that the deferred resignation initiative accounted for approximately $6.7 billion in spending, with more than 144,000 federal employees placed on paid leave under the program.

The U.S. Office of Personnel Management (OPM) does not have an accurate figure for the total cost of administrative leave used as part of workforce reduction efforts, the GAO said. The watchdog warned that its estimate could be higher than the actual amount due to limitations and inconsistencies in the data reported by the agency. These deficiencies could also make it more difficult for OPM to assess whether the savings management’s longer-term goals are being met, the GAO added.

OPM disputed the findings in the GAO report, saying it did not distinguish between the $9.5 billion one-time cost of cutting the federal workforce by 270,000 employees and the estimated $40 billion in annual savings the cuts are expected to bring to taxpayers.

“This 400 percent return on investment is a huge benefit to taxpayers,” OPM Director Scott Kupor said, according to CNN.

CNN also reached out to the White House for comment.

According to OPM data, nearly 140,000 federal employees participated in the deferred resignation program, which was implemented just days after Trump returned to office in January 2025. The initiative was announced in an email with the subject line “Fork in the Road.” Unions have called on federal workers to reject the offer, raising doubts about whether the administration will continue paying participants through September. They also took legal action to stop the program, but were unsuccessful.

OPM backed the deferred resignation program in August 2025 after a report by Democratic Sen. Richard Blumenthal accused the initiative of being a waste of taxpayer money.

“We designed the DRP as a practical, humane and voluntary option to accelerate workforce transitions in a system that desperately needed movement. Employees were given the option to retire early and receive eight months of paid leave; in return, the government will save more than $20 billion annually in costs,” Kupor said in a statement at the time.