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Thu, 17 Sept, 2026Updated 06:46 am IST
Business

US Paid $9.5 Billion to Idle Workers

Federal government spent billions on buyouts and administrative leave as workforce shrunk by 216,000 in 2025

US Paid $9.5 Billion to Idle Workers
Photo: Thomson200 / wikimedia (CC0)

Story timeline2 updates

  1. Senator Patty Murray criticized the Trump administration's actions, calling it a waste of taxpayer dollars.

  2. Story published. Federal government spent billions on buyouts and administrative leave as workforce shrunk by 216,000 in 2025

The US federal government paid a staggering $9.5 billion to federal employees not to work in 2025, according to a report by the Government Accountability Office. This massive payout was part of an effort to shrink the federal workforce, with $6.5 billion associated with a deferred resignation program.

The federal workforce saw a significant reduction of roughly 216,000 workers in 2025. Nearly 140,000 workers took a buyout offer from the government, which was presented as a one-time offer to leave the workforce and receive pay through September 2025.

The Department of Government Efficiency's initiative led to a substantial increase in paid administrative leave costs, with a 435% rise in 2025 compared to previous years. This increase resulted in paid administrative leave costs that were six times more than the government spent in 2023 on administrative leave.

The Trump administration has claimed that the Department of Government Efficiency led to hundreds of billions in savings. However, outside experts have questioned these figures, and the national debt and federal spending have both gone up during Trump's second term.

## Why it matters The significant reduction in the federal workforce and the massive payout to idle workers raise questions about the effectiveness of the government's efforts to shrink its workforce. While the Trump administration claims that these efforts have led to savings, the increase in national debt and federal spending suggests that the long-term impact of these measures is still uncertain. The government's decision to reverse cuts and hire back some workers and contractors in certain roles also highlights the challenges of reducing the federal workforce while maintaining essential government services.

The fate of the federal workforce and the impact of the Department of Government Efficiency's initiatives will likely be closely watched in the coming years. As the government continues to navigate its efforts to reduce its workforce and cut costs, it remains to be seen whether these measures will ultimately lead to the desired savings and efficiency gains.

Sources

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