Trump Admin's DOGE Push Saw Federal Paid Leave Surge 435% As Costs Hit $9.5 Bn In 2025, Says GAO Check Key Findings

(MENAFN- Live Mint) The US government spent an estimated $9.5 billion last year paying federal employees who were placed on administrative leave, according to a new assessment by the Government Accountability Office (GAO). The expenditure came as the Trump administration pursued efforts to reduce the size of the federal workforce and cut government spending.

The GAO said the cost of salaries paid during 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 surge was linked to the deferred resignation programme promoted by the Department of Government Efficiency (DOGE), an initiative spearheaded by billionaire Elon Musk. Administration officials had previously mentioned that the programme would lead to billions of dollars in savings for taxpayers.

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The programme, offered mainly during the early 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, with the arrangement intended to encourage workers to participate. Some federal agencies rolled out 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 over job security grew.

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

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

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The US Office of Personnel Management (OPM) does not have a precise figure for the total cost of administrative leave used as part of the workforce reduction effort, the GAO stated. The watchdog cautioned that its estimate may be higher than the actual amount because of limitations and inconsistencies in agency-reported data. These shortcomings could also make it difficult for OPM to assess whether the administration's longer-term savings targets are being achieved, the GAO added.

The OPM challenged the findings in the GAO report, stating that it does not distinguish between the one-time $9.5 billion cost of reducing the federal workforce by 270,000 employees and the estimated $40 billion in annual savings that the cuts are expected to generate for taxpayers.

“That 400% return on investment is a massive benefit to the taxpayer,” OPM Director Scott Kupor said, according to CNN.

CNN also sought comment from the White House.

According to OPM data, nearly 140,000 federal employees took part in the deferred resignation programme, which was introduced just days after Trump returned to office in January 2025. The initiative was announced through an email carrying the subject line“Fork in the Road.” Unions urged federal workers to reject the offer, raising doubts over whether the administration would continue paying participants through September. They also took legal action to stop the programme but were unsuccessful.

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OPM backed the deferred resignation programme in August 2025 following a report by Democratic Senator Richard Blumenthal that accused the initiative of wasting 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 $20+ billion in costs, annually," Kupor said in a statement at the time.

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