The latest Government Accountability Office (GAO) review of the federal government’s deferred‑resignation buyout program highlights a $6.7 billion outlay in 2025 for employees who stayed home on paid administrative leave. While the report notes that the Office of Personnel Management (OPM) cannot precisely isolate the cost of the buyouts, the agency maintains that the program is a clear fiscal benefit for taxpayers.
OPM’s savings argument
OPM Director Scott Kupor defended the initiative, stating, “Every organization pays severance when reducing headcount. The federal government does the same. Having 270,000 fewer federal employees yields enormous savings to the American taxpayer.” He added that the program, which offered up to eight months of paid leave, was expected to save more than $20 billion a year.
GAO findings on spend and tracking
The GAO estimated that federal agencies spent roughly $9.5 billion on paid administrative leave in 2025—six times the 2023 level—with a 435 % increase in leave usage. About 70 % of that amount, or $6.7 billion, is attributed to the deferred‑resignation program. The review identified 98,758 employees who took more than 90 workdays of paid leave in 2025, up sharply from just 567 in 2023.
Because OPM never created a separate accounting category for the buyouts, the agency must match payroll records to separation records after employees leave federal service. GAO cautioned that this method likely overstates the total cost.
Data‑quality concerns and GAO recommendations
The GAO also uncovered errors that may inflate the reported numbers. Some agencies mistakenly coded federal holidays as paid administrative leave, and pay periods that included a holiday averaged 144 % more leave than those without one. OPM has indicated it will not retroactively correct the historical data posted on its Federal Workforce Data website.
To improve transparency, GAO issued two recommendations: (1) OPM should disclose the data‑reliability problems identified in the review, and (2) OPM should establish a dedicated tracking category for workforce‑reduction leave. OPM agreed with both recommendations.
Congressional interest
The report was requested by three members of the Senate Homeland Security and Governmental Affairs Committee—ranking member Gary Peters (D‑MI), subcommittee chairman James Lankford (R‑OK), and subcommittee ranking member John Fetterman (D‑PA). None of the senators responded to requests for comment at the time of publication.
Context of the program
The deferred‑resignation buyout was a centerpiece of the current administration’s effort to streamline the federal workforce, launched with a January 2025 “Fork in the Road” email offering employees pay through the end of the buyout period. In June, OPM proposed a rule codifying deferred resignation as an acceptable use of administrative leave, noting that the “temporary cost” could generate “large long‑term savings.” A separate GAO review cited in a recent Center Square report could not substantiate many of the claimed savings.
What this means for taxpayers
While the GAO’s audit underscores the need for better accounting, the core premise of the program—reducing the federal workforce to lower taxpayer burden—remains unchanged. OPM’s stance is that, despite the $6.7 billion spend, the reduction of roughly 270,000 positions will ultimately deliver substantial fiscal relief.
Stakeholders and watchdogs will likely continue to monitor how the government tracks these buyouts and whether the projected savings materialize in future budget cycles.
Original reporting: KTBS 3 (Shreveport) — read the source article.
