The Trump administration spent $9.5 billion on paid leave granted to federal employees

The Trump administration spent approximately $9.5 billion in 2025 on paid administrative leave granted to federal employees as part of a government workforce reduction program. The estimate comes from the Government Accountability Office (GAO), the oversight body of the U.S. Congress, and shows a sixfold increase in these costs compared with 2023.

The largest share of the amount, approximately $6.7 billion, was allocated to the “deferred resignation” program. More than 144,000 employees were placed on paid leave before their contracts ended, without being required to work until their resignations. The program, launched in January 2025, offered employees up to eight months of paid leave.

The measure was part of the restructuring promoted by the Department of Government Efficiency, initially led by Elon Musk. The administration argued that reducing the workforce by approximately 270,000 employees would generate annual savings of $40 billion.

The Office of Personnel Management disputes the GAO’s interpretation and says the initial payment represents an investment that will bring significant savings to taxpayers. Critics, including Democratic Senator Patty Murray, however, consider the program the most expensive method of restructuring the federal administration.