Sunday, August 9, 2026

Swamp Update: 2025 Federal Payroll Down $1.9 Billion, Civilian Headcount Down More than 50,000

 Open the Books provides insights into changes in the federal workforce and payroll from 2024 to 2025. The findings reveal a notable decrease in headcount and salary expenditures, as well as ongoing issues related to transparency in federal employee data.

1. Federal Workforce Reduction: The federal workforce, excluding the U.S. Postal Service and Department of War, decreased by over 50,000 employees from 2024 to 2025, dropping from 1,506,603 to 1,452,891. This reduction led to savings of $1.9 billion in total salaries.

2. Agency-Specific Changes:

Some agencies still increased their employee count. Homeland Security added the most with 8,043 new hires, followed by the Department of Interior with 3,034, and the Department of Transportation adding 954.

A significant number of agencies (94) cut staff, with the Department of Veterans Affairs losing the most at 21,428 employees. Health and Human Services and USAID also saw substantial reductions.

3. Redaction of Employee Names: Despite the overall decrease in headcount, redactions of employee names from payroll data have increased dramatically, rising from 2,300 in 2016 to 389,646 in 2025. This increase is attributed to various agencies, including Homeland Security and investigative roles in law enforcement, keeping employee identities private.

4. Employee Departures: The year 2025 witnessed a marked increase in employee departures, with 317,000 government employees leaving and only 68,000 joining, resulting in a net reduction of 249,000. Most of these separations were voluntary, although 24,000 were involuntary, including 17,000 as part of reductions in force.

5. Issues with Data and Transparency: There are ongoing concerns regarding transparency in payroll data. Open the Books has raised issues regarding the absence of critical compensation data, like employee bonuses, which were significantly lower in 2024 compared to 2023.

6. Need for Accountability: Senator Joni Ernst has called for improved transparency and accountability concerning federal workforce management and related financial issues, such as eliminating timecard fraud.

The findings from Open the Books indicate significant shifts in the federal workforce, characterized by considerable staff reductions and salary savings. However, issues surrounding transparency, data redactions, and the management of employee compensation require attention. The discussion around accountability continues as various stakeholders advocate for changes to improve the efficiency and transparency of federal operations.

https://openthebooks.substack.com/p/swamp-update-2025-federal-payroll

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