Archive · 17 Sep 2026
Federal Paid Leave Costs Reached $9.5 Billion in 2025
The federal government paid many workers to stay home while they waited to leave their jobs.
A watchdog called the Government Accountability Office estimated that this cost $9.5 billion in 2025.
That was much more than the government spent on similar leave in 2023.
The largest part was connected to a program called deferred resignation.
Under the program, workers could agree to resign but continue receiving pay for several months.
The GAO said more than 144,000 workers took part, while another government office reported nearly 140,000 participants.
The Office of Personnel Management disagreed with how the costs were presented.
It said the workforce cuts could save taxpayers about $40 billion every year.
The GAO said its estimate might be too high because agencies provided incomplete or inconsistent data.
The Government Accountability Office estimated that the federal government spent $9.5 billion on salaries for employees placed on administrative leave in 2025.
Administrative-leave use rose 435% from 2023, while associated salary costs were roughly six times higher.
The deferred resignation program accounted for about $6.7 billion and placed more than 144,000 employees on paid leave, according to the GAO.
The Office of Personnel Management disputed the assessment, citing an expected $40 billion in annual savings from reducing the workforce by 270,000 employees.
The GAO cautioned that inconsistent agency data could mean its estimate is higher than the actual cost and complicate evaluations of long-term savings.
- Who
- The Government Accountability Office, the Office of Personnel Management, the Trump administration, and participating federal employees.
- What
- A GAO assessment estimated $9.5 billion in 2025 administrative-leave salary costs, including about $6.7 billion tied to the deferred resignation program.
- When
- The spending occurred in 2025; the program was introduced days after Donald Trump returned to office in January 2025.
- Where
- Across the United States federal government.
- Why
- The administrative leave was used in connection with efforts to reduce and restructure the federal workforce.
Critics and Watchdog Findings
Administration and OPM Defense
Cost of paid leave
Critics and Watchdog Findings
The Government Accountability Office estimated that administrative leave cost $9.5 billion in 2025, with about $6.7 billion linked to deferred resignations.
Administration and OPM Defense
The Office of Personnel Management said the costs should be considered alongside the expected $40 billion in annual taxpayer savings from workforce reductions.
Reliability of the estimate
Critics and Watchdog Findings
The GAO warned that agency data limitations and inconsistencies could make it difficult to measure the program’s costs and long-term savings accurately.
Administration and OPM Defense
The Office of Personnel Management challenged the GAO’s presentation of the findings and emphasized the broader financial return expected from reducing the workforce.
Program participation and continuation
Critics and Watchdog Findings
Federal employee unions urged workers to reject the offer and questioned whether participants would continue receiving pay through September; unions also filed unsuccessful legal challenges.
Administration and OPM Defense
The administration promoted the program as a way to reduce the federal workforce, and participation increased in later rounds as restructuring plans and job-security concerns became clearer.
- Estimated 2025 cost
- $9.5 billion in salaries for employees on administrative leave
- Increase in leave use
- 435% compared with 2023
- Increase in costs
- Roughly six times the 2023 level
- Deferred resignation cost
- Approximately $6.7 billion
- Program participation
- More than 144,000 employees according to the GAO; nearly 140,000 according to Office of Personnel Management data
- Expected workforce reduction
- 270,000 employees
- Projected annual savings
- $40 billion, according to the Office of Personnel Management