The Trump administration spent $9.5 billion in 2025 paying federal employees who were not working as part of its ongoing efforts to shrink the federal bureaucracy and reduce government spending. According to an estimate by the Government Accountability Office (GAO), the use of paid administrative leave surged by 435 percent during the first year of President Donald Trump’s second term, reaching levels six times higher than those recorded in 2023. These expenses were largely driven by the administration’s deferred resignation program, which pushed thousands of workers out of government roles.
Workforce Reductions and Unproven Savings:
While the federal civilian workforce has declined by approximately 12 percent through resignations, firings, and hiring freezes since Trump returned to office, the GAO found that the government has been unable to verify the long-term financial savings resulting from these reductions.
Although the administration initially promised that cutting wasteful spending could save up to $1 trillion, it later claimed savings exceeding $200 billion.
However, independent outside experts have not verified this $200 billion figure.
Meanwhile, the federal deficit has continued to rise, with the GAO report noting that factors such as the war in Iran and sweeping Republican-backed tax cuts passed in 2025 contributed to the deficit increase.
The “Fork in the Road” Strategy and Criticisms:
The administration’s workforce reduction strategy began in January 2025 when approximately 2 million federal employees received an email titled “Fork in the Road”. The email offered workers continued salary through September if they chose to resign within nine days, while warning them that they would likely face termination later.
Critics and lawmakers have raised sharp concerns regarding the loss of institutional knowledge and experienced personnel. Senator Patty Murray, the top Democrat on the Appropriations Committee, criticized the approach, stating that the administration spent billions to push out critical experts in a costly manner that degraded government efficiency. Despite these sweeping reductions, agencies have already begun quietly recruiting again focusing heavily on early-career professionals, lawyers, and technology workers.
