The congressional watchdog analyzed payroll data from 76 agencies representing approximately 95% of the civilian federal workforce. The report, published Tuesday, details a dramatic shift in federal personnel practices following President Donald Trump’s inauguration in January 2025. Usage of paid administrative leave increased by 435% from 2023 to 2025, while associated salary costs rose sixfold. GAO estimated that $6.7 billion—roughly 70% of the 2025 total—was directly associated with the administration’s deferred resignation program. Under these programs, roughly 2 million federal workers were offered the option to resign while retaining full compensation through September 30. Federal workforce data indicates that 139,963 employees ultimately left the government through these voluntary departure schemes.
The financial figures stand in contrast to the savings targets set by DOGE, which was led by tech billionaire Elon Musk before he left the administration in May 2025. Musk initially promised to save the federal government $2 trillion, a figure later lowered to $1 trillion. DOGE’s website ultimately claimed $215 billion in estimated savings, a figure that has not been independently confirmed. In a separate review of $110 billion in claimed savings, GAO found that some estimates were incorrect or unsupported. The initiative officially shut down in July, after the Office of Personnel Management (OPM) absorbed most of its functions in November.
OPM Director Scott Kupor defended the program’s economics in a letter responding to the GAO findings. Kupor argued that the distinction between recurring savings and one-time costs is crucial. “The savings recur every year, while the administrative leave costs with the DRP were incurred once,” Kupor wrote, stating that OPM expects the workforce reductions to save $20 billion per year. However, critics and some federal experts point to the disruption caused by the abrupt nature of the cuts. Federal data shows a net decline of 271,363 civilian federal employees—around 12% of the workforce—between Trump’s inauguration and July this year. These reductions were not uniform; the U.S. Agency for Global Development (USAID) saw a 95% workforce decline, while the Education Department lost 46% of its staff. Conversely, the Department of Homeland Security reduced its workforce by less than 1%.
The impact of these cuts has extended beyond immediate budgetary lines. A former IRS commissioner, John Koskinen, noted that the agency lost 28% of its workforce, including experienced employees in technology and tax law management. He described the cuts as a “cliff” rather than a gradual reduction, warning that the loss of capacity to conduct complex audits could encourage tax evasion by wealthy individuals and corporations. An April report from the Yale Budget Lab estimated that the 2025 IRS layoffs could cost the nation $600 billion in lost revenues over the next decade. Furthermore, some agencies have already begun replacing workers they paid to leave. The Partnership for Public Service identified 20,557 hires by June 2026 in roles previously vacated by those who accepted deferred resignation offers.
The administration has also pursued a government-wide civilian hiring freeze, directing agencies to hire no more than one person for every four departures, with exceptions for national security and immigration enforcement. These moves have triggered extensive litigation. In September 2025, a federal judge ruled that OPM exceeded its authority by directing agencies to fire thousands of probationary workers, though the judge did not order their reinstatement. The Supreme Court stayed a lower court injunction in July 2025, allowing agencies to proceed with layoffs while legal challenges continue. As the dust settles on DOGE’s official operations, the debate over the efficacy and cost of these workforce reductions remains unresolved, with the next phase of legal battles focusing on individual agency layoff plans.
