# DOGE Reports $6.7B Workforce Reduction Costs

The Department of Government Efficiency (DOGE) implemented a deferred resignation program between 2023 and 2025 to reduce the federal workforce, resulting in nearly 140,000 employees accepting voluntary resignation with full pay and benefits. However, this initiative incurred a **$6.7 billion** cost in paid administrative leave and has led to many employees being rehired, raising concerns about inefficiencies, increased federal spending, and potential legal risks including wrongful termination and ADA compliance issues. The Government Accountability Office (GAO) highlighted a 435% increase in administrative leave usage during this period, totaling $9.5 billion in paid salaries for employees not actively working.

- **Why this matters:** Procurement and workforce planning professionals should consider the financial and operational impacts of large-scale workforce reduction programs on federal budgets and contract management.
- Agencies may face increased scrutiny on labor cost controls and legal compliance, affecting contract staffing and human capital strategies.
- Contractors supporting federal workforce management and legal advisory services could see demand for expertise in navigating complex employment and compliance challenges.
- This situation underscores the need for careful evaluation of private sector workforce reduction models before applying them to federal government operations.

**Jurisdictions:** federal
**Industries:** Professional Services
**Topics:** Regulatory Compliance
**Published:** September 24, 2026

### Government Entities
- Department of Government Efficiency (DOGE)
- Government Accountability Office (GAO)

### Key Quotes
> A new report from the Government Accountability Office (GAO) analyzing payroll data found a 435% increase in federal agencies9 use of administrative leave between 2023 and 2025, amounting to $9.5 billion in paid salaries to off-the-clock employees.
> — Original poster

> The total cost has yet to be tabulated.
> — Commenter

### Sources
- [DOGE’s push to shrink the federal workforce cost the Trump administration $6.7 billion for employees not to work](https://www.reddit.com/r/fednews/comments/1wp54jn/doges_push_to_shrink_the_federal_workforce_cost) - reddit-fednews