Deferred Resignation Price Tag Tops $11 Billion as OPM Defends Federal Workforce Cuts

The federal government spent at least $11 billion continuing pay and benefits for employees who accepted the Deferred Resignation Program (DRP), according to a new analysis from Public Citizen– a progressive nonprofit consumer advocacy organization.

The analysis examined payments made to federal employees after they accepted a deferred resignation offer, allowing them to remain on the payroll for months before their official separation date.

Using publicly available OPM data, Public Citizen estimated that deferred resignation payments covered at least 140,000 federal workers, totaling between $11.1 billion and $15.1 billion from January 2025 through March 2026.

“(President) Donald Trump has often spoken about cutting waste and making the government more efficient,” Public Citizen said in its report. “Yet his massive federal layoffs and resignation programs have been the epitome of inefficiency and have resulted in billions of dollars in wasted federal funds.”

The report warns that costs will continue to rise as several agencies have offered new rounds of the DRP in 2026.

The report also criticized the administration for inefficiencies with the workforce, noting that in many cases the administration “rescinded the terminations and resignations.”

It noted that at least ten agencies, including the Department of Labor, Department of Health and Human Services, and the Internal Revenue Service, later rehired employees who had accepted the resignation offer.

OPM Response

In a statement to Bloomberg Law, the Office of Personnel Management (OPM) defended the use of deferred resignation. Spokesperson McLaurine Pinover said the personnel reductions achieved because of the program are estimated to save at least $20 billion a year going forward. 

The DRP is part of the administration’s broader effort to increase accountability and flexibility in managing the workforce. Other efforts include overhauling performance management, reclassifying certain policy-making positions to at-will employees, and reforming hiring practices.