Full Breakdown
Deferred Resignation Program: Costs, Rehiring and Service Impacts
7/30/2026, 4:16:34 AM
Core Event
The Deferred Resignation Program (DRP) was the largest workforce-reduction effort undertaken by the Trump administration. Roughly 140,000 federal employees entered the program, receiving six- to nine-month pay periods while barred from returning to their positions. The government has paid about $11 billion in salaries and benefits, using a 38 % benefits factor.
Background & Context
In 2020 the administration announced that the federal workforce was “too big” and needed cuts, likening the approach to corporate severance packages. GAO reviews note that the DRP was implemented without a documented strategic plan.
Data & Statistics
- 140,000 participants.
- $11 billion spent on salaries plus a 38 % benefits factor.
- 10–12 agencies have rehired workers placed in the DRP.
- The IRS let go of roughly 28 % of its workforce, exceeding a Yale model that projected a 22 % cut and a $200 billion revenue loss over ten years.
Impact on Government Services
Analyses link the DRP to several service disruptions:
- Social Security – delayed checks for beneficiaries.
- Veterans Affairs (VA) clinics – reduced staffing slowed medical care.
- IRS IT systems – a 17 % loss of IT personnel created backlogs.
- CISA – after cutting about 1,000 employees, the agency rehired more than 300 within two months to restore “mission-critical” capabilities.
- National security – the Department of Energy’s National Nuclear Security Administration and the Defense Information Systems Agency recalled staff after initial cuts.
- Firefighting – reductions in firefighter staffing were cited as contributing to increased property loss during wildfire season.
Official Statements & Responses
The administration argued that the DRP would generate long-term savings by reducing payroll obligations. GAO reports characterized the program as “neither targeted nor strategic,” noting that agencies repeatedly had to rehire employees, incurring additional hiring costs not captured in the $11 billion figure.
Conflicting Reports & Gaps
- The $11 billion cost covers only salaries and the 38 % benefits factor; it excludes rehiring expenses, training, or lost productivity.
- Long-term fiscal impact estimates vary: the Yale model projects a $200 billion revenue loss from a 22 % IRS cut, while the actual 28 % reduction suggests a potentially larger effect that remains unquantified.
What’s Next
GAO officials indicate that additional agency-specific reports are forthcoming to measure the full operational and financial consequences of the DRP. Future studies will track rehiring rates, service-delivery metrics and the program’s influence on federal revenue.
