# OPM Reports Increased Federal Paid Leave Costs

Recent Government Accountability Office (GAO) reports reveal that federal agencies spent nearly **$10 billion** on paid administrative leave in 2025, marking a sixfold increase since 2023. This surge is primarily attributed to the Office of Personnel Management's (OPM) Deferred Resignation Program (DRP), which encouraged workforce reductions by placing employees on extended paid leave. Despite the high upfront costs, OPM projects the DRP will generate annual savings of approximately **$20 billion** over time. However, GAO highlights significant challenges in tracking and categorizing administrative leave related to workforce reductions, complicating cost transparency and impact assessments across multiple federal agencies.

- **Why this matters:** Procurement professionals should be aware that workforce management strategies like the DRP can substantially affect federal payroll expenditures and contractor substitution dynamics.
- The creation of a new payroll leave category by OPM aims to improve data reliability, which may influence future budget planning and contract requirements.
- Agencies and contractors may experience operational impacts due to prolonged administrative leave usage, affecting service delivery and contract performance.
- Organizations supporting federal workforce solutions should evaluate opportunities arising from evolving leave tracking systems and workforce management reforms.

**Jurisdictions:** federal
**Industries:** Professional Services
**Topics:** Regulatory Compliance
**Published:** September 15, 2026

### Government Entities
- Government Accountability Office (GAO)
- Office of Personnel Management (OPM)
- Partnership for Public Service
- Public Citizen
- Department of Homeland Security (DHS)

### Key Quotes
> GAOs review of payroll data found that federal agencies use of paid administrative leave increased by 435 percent from 2023 to 2025, with $9.5 billion spent in 2025, a sixfold increase from 2023, largely due to the Deferred Resignation Program.
> — Original poster

> Almost all DEI employees across the interagency were put on admin leave in Jan/Feb 2025 and stayed there for 9+ months with no understanding of the longevity of their status or if they would ever be recalled.
> — Community commenter

### Sources
- [Agencies spent nearly $10 billion for feds not to work in 2025 - Government Executive](https://www.govexec.com/oversight/2026/09/agencies-spent-nearly-10-billion-feds-not-work-2025/416004) - GovExec.com
- [
        Trump administration’s DRP cost $6.7B last year, watchdog estimates | Federal News Network](https://federalnewsnetwork.com/management/2026/09/trump-administrations-drp-cost-6-7b-last-year-watchdog-estimates) - federalnewsnetwork.com
- [NEW GAO REPORT -- Federal Workforce: Deferred Resignation Program Largely Responsible for Sixfold Increase in Paid Administrative Leave Salary Costs](https://www.reddit.com/r/fednews/comments/1wh56jv/new_gao_report_federal_workforce_deferred) - reddit-fednews