The $9.5 billion bill for not working

A Trump-era program paid federal workers billions to resign, with costs far exceeding initial projections.

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Sep 16, 2026

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The $9.5 billion bill for not working

A Trump-era program paid federal workers billions to resign, with costs far exceeding initial projections.

In brief

A Trump-era program paid federal workers billions to resign, with costs far exceeding initial projections. The federal government spent $9.5 billion on paid administrative leave in 2025, mostly from a DOGE program that paid 140,000 workers to resign. Originally reported by TIME.

A $9.5 billion payroll for nothing

The federal government spent $9.5 billion paying employees to not work in 2025. Paid administrative leave use jumped 435% from 2023 to 2025.

DOGE's deferred resignation offer

In January 2025, Trump offered 2 million federal workers the option to resign while receiving full pay through September. About 140,000 employees accepted the deal.

Musk's shrinking savings claims

Musk's shrinking savings claims

Elon Musk initially promised $2 trillion in savings, then lowered it to $1 trillion. DOGE ultimately claimed $215 billion, a figure not independently confirmed.

Uneven cuts across agencies

USAID lost 95% of its workforce, while Education dropped 46% and HUD fell 31%. Homeland Security cut less than 1% of staff.

Agencies rehired thousands back

By June 2026, agencies had hired 20,557 people for the same types of roles as employees they paid to leave. Some positions couldn't stay empty.

OPM defends the math

OPM Director Scott Kupor says the $6.7 billion was a one-time cost that will save $20 billion annually. The workforce shrank by 271,000 people overall.

“The savings recur every year, while the administrative leave costs with the DRP were incurred once”

Courts blocked some layoffs

A judge ruled OPM exceeded its authority firing probationary workers. Another blocked a plan to cut FEMA staffing by 50% as unlawful.

“Trump spent billions to push out experienced and badly needed experts across government”

The one thing

The federal government spent $9.5 billion on paid administrative leave in 2025, mostly from a DOGE program that paid 140,000 workers to resign.

Read the original on TIME

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