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Federal Payroll Ballooning While Government Struggles to Fund Basic Services, Report Finds
A comprehensive new report released Wednesday by government watchdog group Open The Books reveals that the federal bureaucracy has grown significantly larger, wealthier, and less transparent since 2020, raising questions about Washington’s ability to fund essential government functions despite nearly 800,000 federal employees drawing six-figure salaries.
The analysis of publicly disclosed federal salaries for Fiscal Year 2024 found that while the total federal workforce increased by just 5% since 2020 to 2.9 million civil service employees, the total payroll grew nearly five times faster, reaching $270 billion plus an additional 30% for benefits.
“The Trump administration has a historic opportunity to bring much-needed transparency to the administrative state,” said Open The Books CEO John Hart in a statement. “While federal employees don’t add as much to the debt as safety net programs, defense, and overall agency spending, they are an indicator of government’s growth.”
The report reveals staggering figures: American taxpayers are currently funding the federal workforce at a rate of $673,000 per minute, $40.4 million per hour, and just under $1 billion per day. Almost 1,000 federal workers now earn more than the president’s $400,000 annual salary, while 31,452 non-Defense Department employees out-earn every governor in all 50 states.
Perhaps most striking is the rapid growth in top-tier compensation. The number of federal employees earning $300,000 or more has surged 84% since 2020, while those making $200,000 or more increased by 82% during the same period. In total, 793,537 federal workers now earn $100,000 or more annually.
The investigation also uncovered concerning transparency issues. The names of 383,000 federal workers across 56 different agencies were redacted, concealing $38.3 billion in compensation from public scrutiny. “You can’t have accountability without visibility,” Hart noted.
U.S. Senator Joni Ernst (R-Iowa), who has been collaborating with Open The Books to improve government transparency, has identified multiple instances of federal employees drawing double salaries by working multiple government jobs simultaneously—a practice typically prohibited by law.
In a September letter to Scott Kupor, director of the U.S. Office of Personnel Management, Ernst detailed several examples of apparent fraud, including a Department of Housing and Urban Development employee who simultaneously held multiple full-time government contractor positions with AmeriCorps and the National Institutes of Health between 2021 and 2024.
“She was able to hide her overlapping jobs and get away with billing taxpayers $225,866 for hours she never worked,” Ernst wrote, noting that the employee sometimes billed for more than 24 hours of work in a single day. Ernst cited additional cases, including a Peace Corps human resources official caught falsifying timecards submitted to different agencies.
The senator has introduced legislation aimed at increasing transparency around federal employment and compensation. Her Non-Essential Workers Transparency Act, introduced in October, would require executive agencies to provide detailed reports to Congress within 30 days of any government shutdown, including information on employee numbers, salaries, and furlough status.
“I am proud to have partnered with the Trump administration and DOGE to successfully downsize the bloated bureaucracy, but there is much more work to be done to make Washington more efficient,” Ernst said, referring to the recent government shutdown that will cost taxpayers an estimated $12 billion in back pay for approximately 750,000 “non-essential” federal employees who were furloughed for nearly six weeks.
The Open The Books report arrives as Congress works toward a deal to fully reopen the government, highlighting the disconnect between growing federal compensation and the government’s struggle to maintain basic operations during budget impasses.
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15 Comments
While the federal government plays a vital role, the figures presented in this report suggest there may be room for optimization within the bureaucracy. Balancing workforce needs with fiscal responsibility is a delicate challenge, but one that deserves rigorous scrutiny and action from policymakers.
Oversized bureaucratic salaries and rapid payroll growth are concerning, especially when essential government functions are struggling for funding. This report raises valid questions about prioritizing efficiency and accountability in the federal workforce. I hope policymakers take these findings seriously and explore solutions.
I agree, this report underscores the importance of carefully managing government spending and ensuring taxpayer resources are allocated effectively. Meaningful reforms that enhance efficiency without compromising critical services would be a positive step forward.
The growth of the federal bureaucracy and associated costs is a complex issue that warrants thorough analysis. I appreciate the transparency this report provides, as it allows citizens to better understand how their tax dollars are being utilized. Constructive dialogue on potential reforms could yield positive outcomes.
The $673,000 per federal employee statistic is quite staggering. I’d be curious to understand the breakdown of how that figure is calculated and what it encompasses. Oversight and transparency around government spending is crucial, so this report seems like a valuable contribution.
Agreed, more detailed analysis of the data and methodology would help provide context. Improving cost efficiency in the federal bureaucracy is an important but complex challenge.
As a taxpayer, I’m concerned to see such rapid growth in federal payroll costs outpacing the growth in the overall workforce. While some increase may be justified, the reported figures suggest there may be room for optimization. I hope policymakers carefully review these findings.
This report highlights an important issue that warrants further investigation and dialogue. The growth in federal payroll costs outpacing the increase in the overall workforce is concerning and raises questions about the efficiency of the bureaucracy. I hope policymakers carefully consider these findings and explore ways to enhance accountability and cost-effectiveness.
Agreed. Improving the cost-effectiveness of the federal government is a complex challenge, but one that’s crucial for ensuring taxpayer resources are used responsibly. A balanced, data-driven approach could yield positive outcomes.
This report highlights an issue that deserves serious consideration. The rapid growth in federal payroll costs, if not justified by increased service delivery, raises concerns about efficiency and accountability. I hope this analysis prompts constructive dialogue on ways to streamline the bureaucracy while maintaining essential functions.
Well said. Striking the right balance between an effective federal workforce and prudent fiscal management is crucial. Thoughtful reforms guided by data-driven analysis could yield positive results for taxpayers.
This report highlights an important issue that deserves closer scrutiny. While the federal government plays a crucial role, the public has a right to expect efficient and responsible use of taxpayer dollars. I’m curious to see how policymakers respond to these findings.
This report certainly raises concerns about the growing size and cost of the federal bureaucracy. While some growth may be necessary, the salaries and benefits cited seem quite high. I wonder if there are opportunities to streamline operations and reduce administrative bloat without compromising essential services.
You make a fair point. It’s important to balance fiscal responsibility with maintaining a functional government. Perhaps a thorough review of staffing levels and compensation could identify areas for efficiency improvements.
The findings in this report are certainly thought-provoking. While the federal government plays a critical role, the public has a right to expect responsible stewardship of taxpayer dollars. I’m curious to see how policymakers respond and whether they pursue measures to optimize the bureaucracy’s size and costs.