The Government Accountability Office released a report on Tuesday, Sept. 16, 2026, estimating that the federal government spent $9.5 billion on paid administrative leave in 2025. The figure reflects a sharp escalation in a personnel cost category that has drawn scrutiny amid the Trump administration’s sweeping efforts to shrink the federal workforce.
According to the GAO, the use of paid administrative leave climbed 435% between 2023 and 2025, while the salary costs associated with that leave rose sixfold over the same period. The report attributes a substantial share of the total to the deferred resignation program, which accounted for approximately $6.7 billion in salaries.
Deferred Resignation Program Drives Costs
The deferred resignation program was unveiled days into President Donald Trump’s second term in early 2025. Under the program, federal employees could opt to quit while continuing to receive pay through September. Nearly 140,000 workers accepted the offer, according to data provided by the Office of Personnel Management.
Workers who received the offer were sent an email titled “Fork in the Road.” The approach mirrored a similar message that Elon Musk had previously sent to employees at X, the social media company he owns. Musk led the Department of Government Efficiency, or DOGE, which Trump created in 2025 to carry out mass firings and dismantle agencies including the U.S. Agency for International Development.
Then-White House press secretary Karoline Leavitt said workers could choose different work and that the administration would provide an eight-month payout. The program was part of a broader push to cut costs by reducing the size of the government.
Workforce Losses and Historical Context
As of July, the federal workforce had lost more than 271,000 employees, a figure that includes both voluntary and involuntary departures. Before Trump’s second term, the federal workforce had grown annually from 2015 through 2025, according to OPM data.
The GAO report emphasizes that its numbers are estimates. The Office of Personnel Management does not know the actual costs of paid administrative leave tied to workforce reduction, and the agency cannot easily separate those costs from other general paid administrative leave. This limitation complicates efforts to pinpoint the precise fiscal impact of the deferred resignation program and related departures.
The White House did not immediately respond to a request for comment. The report arrives as the administration continues to face questions about the financial trade-offs of its government-shrinking agenda, with the GAO’s estimates offering one of the most detailed public accounting to date of leave-related spending during the DOGE era.
