Federal Agencies Spent Nearly $10 Billion on Paid Leave in 2025

Significant Increase in Paid Administrative Leave

Federal agencies allocated nearly $10 billion for paid administrative leave in 2025, a move linked to the Trump administration’s deferred resignation program. This initiative, aimed at encouraging federal workers to voluntarily resign, resulted in a staggering 435% increase in such expenditures compared to two years prior, according to a recent Government Accountability Office (GAO) report.

The use of paid leave has become a contentious issue, reflecting broader trends in federal workforce management. The deferred resignation program appears to have been a strategic effort to reshape the federal workforce by incentivizing departures rather than implementing layoffs. This substantial financial commitment raises questions regarding budget allocation and workforce efficiency within federal agencies, particularly as the government aims to optimize its operational capabilities.

This development has significant implications for the federal workforce landscape. The increased spending on paid administrative leave not only strains budgetary resources but may also affect morale and productivity among remaining employees. As agencies adapt to this costly approach, stakeholders must consider the long-term effects on workforce composition and efficiency. The shift towards incentivizing voluntary departures through substantial financial means signals a critical juncture in how the federal workforce will be managed moving forward.

Sources: Defenseone, GovExec.com, Time Magazine, Federal News Network, and The Guardian

Edited by Daniel Vazdar, Editor. How DEFCROS News reports, sources and corrects.