Government Watchdog Report Raises Concerns Over Federal Workforce Spending

A report released by a government oversight organization has raised questions about why there continues to be inadequate funding for government infrastructure. This comes despite nearly 800,000 federal employees receiving salaries exceeding $100,000, with the average federal salary significantly surpassing that figure.

The organization Open the Books, which is part of American Transparency—a nonprofit aimed at monitoring government expenditures—shared its findings on Wednesday. This comes as discussions between Republicans and Democrats are ongoing regarding the reopening of the government. The report indicates that, since 2020, the federal bureaucracy has expanded and become more financially opaque.

Examining public payroll data for the 2024 fiscal year, the report identified around 2.9 million government employees accruing a total payroll of $270 billion, not accounting for an additional 30% in benefits. Even though the number of federal employees has grown by 5% since 2020, salaries have ballooned at nearly five times that rate.

Open the Books highlighted that hiring federal workers currently costs taxpayers an astonishing rate of $673,000 per minute, which translates to about $40.4 million per hour or nearly $1 billion every day. Among these employees, roughly 1,000 earn more than the president, who receives an annual salary of $400,000. Additionally, over 31,000 federal employees earn more than every governor across the 50 states, while 793,537 are making over $100,000. The report noted an 84% increase in federal employees earning over $300,000 since 2020, and an 82% increase in those making more than $200,000.

During its investigation, Open the Books encountered significant transparency issues, finding that the names and salaries of 383,000 federal employees across 56 agencies were redacted, amounting to $38.3 billion. John Hart, CEO of Open the Books, emphasized, “Without visibility, there can be no accountability.”

Hart remarked that the Trump administration possesses a unique chance to enhance transparency within the bureaucracy. He acknowledged that while the federal workforce does not contribute as much to the national debt as safety-net programs or defense expenditures, it remains a significant indicator of government growth. He criticized ongoing lack of clarity, urging that taxpayers are in need of a more comprehensive understanding of federal employment.

Senator Joni Ernst (R-Iowa) is collaborating with Open the Books to advocate for greater transparency. In a letter last September to the U.S. Office of Personnel Management (OPM) Director Scott Cooper, she pointed out several instances of full-time federal employees receiving double pay while simultaneously working for other government agencies or contractors, something that is generally prohibited by law. Ernst mentioned that these practices occurred without the knowledge of the employees’ management.

She illustrated this with examples, including a Department of Housing and Urban Development (HUD) employee who was able to juggle multiple jobs while submitting time cards indicating extensive work. In fact, Ernst noted that one employee was able to earn $225,866 without actually working the claimed hours.

In her letter, she also highlighted a case involving a Peace Corps human resources employee who falsified time records, resulting in substantial overbilling of taxpayers. Ernst reflected on her partnership with the Trump administration to tackle bureaucratic bloat but acknowledged that more work remains to be done for improvement.

She pointed out the financial repercussions of underperforming management, mentioning a potential $12 billion in back pay owed to non-essential federal employees who were not active during a recent closure.

In her efforts to foster transparency, Ernst introduced the Non-Essential Worker Transparency Act in October. This proposed legislation seeks to inform the public about the potential costs associated with federal workforce shutdowns, requiring detailed reports from the executive branch to Congress within 30 days following any expiration of appropriations. This would include comprehensive data about employee counts, salaries, and furloughs, with mandated publication on agency websites.