The GAO found federal agencies spent $9.5 billion on paid administrative leave in 2025, a 435% increase since 2023, driven largely by a January 2025 deferred-resignation program from DOGE. GAO estimates about $6.7 billion of that total is directly linked to the offer that paid employees through September if they resigned within nine days. The federal workforce has shrunk roughly 12% in President Trump’s second term; about 140,000 accepted the offer while over 300,000 positions were cut. Critics say the policy was costly and will weaken public services.
GAO: Federal Agencies Paid Nearly $10 Billion in Administrative Leave After DOGE Deferred-Resignation Offer
(AP Photo/Jose Luis Magana)
The Government Accountability Office (GAO) reports that federal agencies recorded $9.5 billion in salary costs for paid administrative leave in 2025, a dramatic increase tied largely to a January deferred-resignation program promoted by the Department of Government Efficiency (DOGE).
Key finding: GAO found a 435% rise in the use of paid administrative leave from 2023 to 2025 and estimates agencies in the review spent $9.5 billion on that leave category in 2025 — roughly six times the 2023 level.
"GAO's review of payroll data found that federal agencies' use of paid administrative leave increased by 435 percent from 2023 to 2025. GAO estimates federal agencies in our review spent $9.5 billion in salary costs on paid administrative leave in 2025, a sixfold increase from 2023," the report states.
The GAO ties much of the spike to a January 2025 DOGE email that offered employees the option to resign within nine days and continue receiving pay through September. Using payroll and internal time-and-attendance data, GAO estimates about $6.7 billion of the $9.5 billion paid in 2025 was associated with that deferred-resignation program.
"Using program assumptions and internal time and attendance data provided by payroll service providers, GAO calculated about $6.7 billion of that amount was associated with [the] deferred resignation program," the report adds.
During President Trump’s second term the federal workforce fell by roughly 12 percent. The GAO report notes approximately 140,000 employees accepted the deferred-resignation offer, while more than 300,000 federal positions were eliminated amid DOGE-led cuts, a program the report says was initially overseen by Elon Musk and his team.
Senator Patty Murray (D-WA), Vice Chair of the Senate Appropriations Committee, criticized the policy, arguing it was an expensive way to reduce headcount and warning that the loss of experienced staff will slow services for seniors, veterans and families.
"After promising to cut waste, Trump instead set billions upon billions in taxpayer dollars on fire to quite literally pay people not to do jobs they loved — from researching cancer cures to taking care of our National Parks, and so much else," Senator Murray said in a statement.
The GAO findings raise questions about the fiscal and operational consequences of large-scale personnel actions and the trade-offs between short-term savings and long-term service capacity.
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