Money Watch•2 MIN READ

DOGE Laid Off Workers and Had to Rehire Thousands. A Government Audit Found It Cost $38 Million in One Agency Alone.

Alex Mercer

Updated Jun 29, 2026

A Government Accountability Office analysis found that layoffs in the Education Department’s civil rights division cost the federal government $38 million - with employees paid for months after termination because the dismissals violated proper procedures, requiring back pay and settlements.

What You Should Know

The $38 million finding is one documented example of a pattern that played out across the federal government. Brookings documented 25,747 instances where the Trump administration fired federal workers and then had to rehire them - in roughly half the cases because courts ruled the firings improper.

Government workforce actions require due process. Bypassing those procedures generates legal liability and financial costs that offset intended savings. Termination-for-convenience settlements also apply to federal contractors whose agreements were canceled under DOGE directives.

The Money Trail

The DOGE initiative’s claimed savings of $200 billion or more have not been independently verified. Meanwhile, the financial costs of improper firings are accumulating: settlement payments, back pay obligations, contractor termination settlements, and the ongoing litigation costs of more than a dozen active lawsuits.

The Congressional Budget Office and GAO both noted that the administration conducted most cuts before Congress finalized its 2026 appropriations bills - bypassing the accountability process that would have flagged these costs before they accrued.

The Receipts

PBS/NewsHour confirmed the GAO $38 million DOE finding. Brookings confirmed the 25,747 fire-and-rehire figure. CBPP documented the cuts bypassing congressional approval. Fed-Spend confirmed the $85 billion in contract cancellations with associated termination settlement obligations.

What Happens Next

The full financial audit of DOGE’s actions has not been completed. Congressional auditors are still reviewing the scope of contract cancellations and personnel costs. Multiple lawsuits remain active in federal courts with outcomes that could generate additional back-pay obligations.

References: PBS NewsHour | Brookings | CBPP