Trump Administration Spent $9.5 Billion on Federal Worker Buyouts

The Trump administration spent $9.5 billion on paid administrative leave for federal employees in 2025, a sixfold increase over 2023 levels, according to a report from the Government Accountability Office. The surge was primarily driven by a deferred resignation program spearheaded by the Department of Government Efficiency and Elon Musk, which paid approximately $6.7 billion to roughly 140,000 employees to resign while receiving full pay and benefits through the end of the fiscal year.

While the federal civilian workforce shrank by about 12 percent, the Government Accountability Office found that 96 percent of the administration's reported savings lacked sufficient verification. The watchdog also noted that the Office of Personnel Management lacks the precise data needed to track whether government-wide cost-saving goals are being met. Additionally, the Partnership for Public Service reported that the government has already backfilled over 20,000 positions vacated by these resignations.

Office of Personnel Management Director Scott Kupor defended the expenditure as a one-time cost that facilitates a larger reduction of 270,000 employees, claiming the program provides $40 billion in annual savings. Conversely, Senator Patty Murray and the American Federation of Government Employees condemned the initiative as a waste of taxpayer funds and a threat to essential public services.