More Than 144,000 Federal Employees Took Paid Administrative Leave Under A Deferred Resignation Program As The Administration Worked To Reduce The Federal Workforce
The federal government spent an estimated $9.5 billion on paid administrative leave in 2025, with much of that cost tied to the Trump administration’s effort to shrink the federal workforce, according to a new Government Accountability Office report.
The GAO found federal agencies’ use of paid administrative leave jumped 435% between 2023 and 2025, rising from about 4 million workdays in 2023 to approximately 21.6 million workdays in 2025.
The agency estimated that roughly $6.7 billion of the 2025 salary costs were connected to the administration’s Deferred Resignation Program.
Under the Deferred Resignation Program, federal employees who agreed to leave government service could generally stop working while continuing to receive their salaries and benefits until their resignation or retirement dates.
The GAO estimated that 144,312 employees across 76 agencies reported paid administrative leave associated with the program. The watchdog analyzed payroll information covering about 95% of the civilian federal workforce.
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The Office of Personnel Management’s original program guidance told participating employees they would keep their full pay and benefits through Sept. 30, 2025, regardless of their daily workload. OPM’s frequently asked questions also stated that workers were not expected to continue working during the deferred resignation period.
The increase was significant. Nearly 100,000 federal employees recorded more than 90 workdays of paid administrative leave in 2025, compared with fewer than 600 employees in both 2023 and 2024, according to the GAO.
The GAO cautioned, however, that problems with agencies’ leave reporting could mean the $9.5 billion estimate overstates the amount of administrative leave actually used. Among the issues identified were holidays that were improperly reported as administrative leave.
Federal Workforce Fell By Hundreds Of Thousands
The spending came as the federal workforce was undergoing one of its largest reductions in years.
Federal government employment had fallen by about 355,000 workers, or 11.8%, from its October 2024 peak through March 2026, according to the Bureau of Labor Statistics.
The reductions have generated debate over both their financial costs and their effects on government services. Federal watchdog reports have documented staffing pressures in some agencies, including the Department of Veterans Affairs. In fiscal year 2025, all 139 Veterans Health Administration facilities reported at least one severe occupational staffing shortage, with total reported shortage occupations increasing 50% from the previous year.
OPM Says Program Will Produce Long-Term Savings
The Office of Personnel Management has defended the deferred resignation strategy, arguing that the temporary separation costs should be weighed against future savings from permanently reducing payroll expenses.
OPM Director Scott Kupor argued in 2025 that focusing only on the upfront cost ignored the administration’s expectation that a smaller workforce would reduce ongoing federal spending. OPM has also described administrative leave as a tool for restructuring agencies and creating a “leaner” federal workforce.
The administration has separately said the deferred resignation initiative resulted in approximately 154,000 voluntary resignations, though OPM’s workforce database currently lists nearly 140,000 processed Deferred Resignation Program actions and notes that additional actions may continue to be recorded.
The new GAO report puts a clearer price tag on the transition: While the administration pursued workforce reductions as part of its effort to cut federal spending, the process itself resulted in billions of dollars in salary costs for employees who were placed on paid leave before leaving government service.
