Trump Administration Spent $9.5 Billion Paying Federal Workers Not to Work in 2025

The Trump administration spent an estimated $9.5 billion in 2025 paying federal employees to stay home under a controversial deferred resignation program designed to reduce the government workforce, according to a recent Government Accountability Office (GAO) report.

Deferred Resignation Program Drives Surge in Paid Leave Costs

The massive increase in paid administrative leave for federal employees was largely fueled by the Department of Government Efficiency’s (DOGE) deferred resignation plan, which President Donald Trump launched shortly after his second term began in January 2025. The program allowed federal workers to resign but remain on paid leave for months without performing duties as an incentive to participate.

The GAO found that federal agencies’ paid leave usage surged 435% compared to 2023, with the program accounting for roughly $6.7 billion of the total $9.5 billion spent. Over 144,000 federal employees enrolled in the program, which some agencies offered in multiple rounds as word spread and uncertainty about job security grew.

Government Efficiency and Cost Savings Debate

Administration officials, including Scott Kupor, director of the U.S. Office of Personnel Management (OPM), argued the upfront costs represent a one-time expense that will yield long-term savings. OPM estimates that reducing the federal workforce by approximately 270,000 employees through this program will save taxpayers more than $40 billion annually.

“That 400% return on investment is a massive benefit to the taxpayer,” Kupor said in a statement. He described the program as a “practical, humane, and voluntary option” to accelerate workforce reduction while offering employees generous early retirement incentives.

Criticism and Concerns from Lawmakers and Unions

Despite these claims, the GAO report highlighted data limitations that make it difficult to track the actual costs and long-term savings definitively. The Office of Personnel Management itself acknowledged challenges in measuring the program’s financial impact due to inconsistent agency reporting.

Democratic lawmakers have been sharply critical. Sen. Patty Murray, vice chair of the Senate Appropriations Committee, called the program “the most expensive way imaginable to make government worse.” She condemned the approach for sidelining experienced federal employees who perform critical work—from scientific research to national park management—while still drawing full salaries.

Unions also opposed the program from the outset, warning workers against participation and even filing unsuccessful lawsuits to block it. Many employees feared that the initiative was a prelude to larger workforce cuts and job insecurity.

Program Launch and Worker Response

The deferred resignation program was introduced within days of President Trump’s inauguration in January 2025 through an email titled “Fork in the Road.” Initially, participation was modest, but as the extent of the Trump administration’s federal workforce overhaul became clearer, many more workers opted in.

The program allowed employees to retire early with up to eight months of paid leave. While the administration framed this as a voluntary and humane exit strategy, critics argued it forced many workers into an early departure under financial pressure and uncertainty.

The GAO report serves as the latest development in ongoing scrutiny of the Trump administration’s efforts to reshape the federal government workforce amid broader efforts to reduce government size and spending.

As the debate continues, taxpayers and policymakers alike are weighing the immediate costs against promised future savings and the broader impact on federal services.

This story will be updated as more information becomes available.