The Trump administration spent $9.5 billion last year on paid administrative leave for federal employees. This figure is based on a report from the Government Accountability Office and shows that the use of paid administrative leave during this period increased by 435 percent.
Increased Costs and Structural Changes
The report states that costs associated with administrative leave have increased sixfold from 2023 to 2025. This increase coincides with President Donald Trump's decision in 2025 to establish the Department of Government Efficiency, led by Elon Musk. This department undertook widespread layoffs and the dissolution of the U.S. Agency for International Development.
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According to the report, a significant portion of the leave costs, approximately $6.7 billion, stems from the "Deferred Resignation" program during the DOGE era. Nearly 140,000 federal employees have joined this program, which allows employees to continue receiving pay until September if they agree to resign in early 2025.
Consequences and Challenges
The White House did not immediately respond to requests for comment on this report. The Government Accountability Office emphasized that the figures provided are estimates and also noted that the Office of Personnel Management (OPM) "is unaware of the actual costs of administrative leave for workforce reduction efforts, including the deferred resignation program." To calculate long-term savings, OPM needs accurate information on the short-term costs of administrative leave.
The deferred resignation program was introduced just days after the start of Trump's second presidential term, and federal employees received an email titled "Multiple Paths" explaining their options. Elon Musk, who quickly rose to the highest levels of power in the government, had previously sent a similar titled email to his company employees.
At the time of the program's announcement, Caroline Levitt, then-White House spokesperson, stated that if federal employees "do not want to work in the office and contribute to making America great again, they can choose another job, and the Trump administration will offer a very generous payment equivalent to 8 months of salary." According to data released by OPM, during Trump's second term, the federal workforce has lost over 271,000 employees. This figure includes both voluntary and involuntary departures.
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