Deferred Resignation Program Cost Government About $6.7B in 2025, GAO Finds

Payouts tied to the Deferred Resignation Program (DRP) cost the federal government an estimated $6.7 billion in 2025 and were largely responsible for a sixfold increase in paid administrative leave costs. That’s according to a new report from the Government Accountability Office (GAO).

The report says about 70 percent of the government’s spending on paid administrative leave in 2025 ($6.7 billion out of $9.5 billion) was tied to paying employees who opted into the DRP.

Roughly 144,000 employees took part in the DRP in 2025, which generally allowed them to be placed on administrative leave until they resigned or retired by September 30, 2025. About 126,000 employees were on paid leave for at least two months and nearly 100,000 for at least three months.

Precise Costs Uncertain

GAO cautioned that the $6.7 billion estimate is not precise. In some cases, agencies combined DRP administrative leave with other types of leave and holiday pay, making it difficult to isolate exact costs.

“OPM has issued guidance to help address this data issue” but “does not plan to retroactively fix such historical errors in data released to the public,” the report stated.

In addition, GAO’s salary-cost estimate does not include the costs of continuing health insurance and life insurance or the buildup of retirement benefits. 

OPM Response

OPM argues the short-term costs will be outweighed by long-term savings from a smaller federal workforce.

In fact, OPM Director Scott Kupor tells Federal News Network he expects the DRP to save the federal government billions. 

“The GAO report fails to highlight the difference between a one-time expense to reduce the size of the federal government and the $40 billion per year savings in taxpayer dollars that this reduction provides,” stated Director Kupor in a statement to Federal News Network. “That 400% return on investment is a massive benefit to the taxpayer.”