The U.S. Government Accountability Office (GAO) reported Tuesday that the federal government paid $9.5 billion in 2025 to federal workers who were not working, primarily due to a deferred resignation program tied to efforts to reduce the size of the federal workforce.
The GAO found that $6.7 billion of the total was spent on the Department of Government Efficiency’s (DOGE) deferred resignation program, which offered federal employees the option to resign while receiving full pay and benefits through September 30, 2025. Nearly 140,000 workers accepted the offer, contributing to a 435% surge in paid administrative leave costs compared to 2023. The federal workforce shrank by approximately 216,000 employees last year.
Program Details and Implementation
The deferred resignation program was introduced in January 2025 as part of DOGE’s broader initiative to streamline the federal government. Employees received an email titled “Fork in the Road”, outlining their options. The program allowed workers to resign with full compensation until September 30, 2025, regardless of their original departure date. The Office of Personnel Management (OPM) reported that 139,963 federal workers participated in the program.
The GAO’s report analyzed payroll data from 76 federal agencies, representing about 95% of the federal workforce, and noted that the costs of paid administrative leave were reported alongside other types of leave, making long-term savings difficult to calculate. The OPM stated that it does not know the actual costs of the leave used specifically for workforce reduction efforts, complicating efforts to assess the program’s financial impact.
Administration’s Rationale and Claims
The Trump administration, through DOGE—led by tech billionaire Elon Musk—defended the deferred resignation program as a one-time expense that has contributed to annual savings of $40 billion. Administration officials argued that the initiative helped reduce unnecessary federal spending and improve operational efficiency. The White House did not immediately respond to requests for comment on the GAO report.
Ongoing Workforce Adjustments
While some federal departments have begun reversing certain workforce cuts and hiring contractors to fill critical roles, others continue plans to relocate staff from Washington, D.C., to regional hubs. These adjustments may lead to further attrition. The GAO emphasized that the long-term financial impact of the program remains uncertain due to challenges in tracking costs and savings.
Watchdog Concerns and Unanswered Questions
The GAO report highlighted that the OPM lacks a clear method to distinguish between paid administrative leave used for workforce reduction and other purposes. This limitation makes it difficult to determine the program’s true cost-effectiveness. The watchdog also noted that the national debt and federal spending increased during the second term of the Trump administration, raising questions about the overall fiscal impact of the workforce reductions.
Political Response
Senator Patty Murray, vice-chair of the Senate Appropriations Committee, criticized the administration’s approach, stating that the costs were excessive and lacked transparency. The report did not include a direct response from the administration regarding these criticisms.
Federal agencies continue to assess the deferred resignation program’s outcomes, with some departments already reporting staffing shortages in key areas. The long-term effects on government operations and public services remain under review.