USAGM Paid $1.6 Million Weekly for Staff on Leave

The federal agency continues paying 420 staffers while they remain on mandatory administrative leave.

Updated on Oct. 2, 2026 in Media

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The U.S. Agency for Global Media is spending $1.6 million weekly to maintain 420 employees on mandatory administrative leave following a failed reorganization attempt. AI Illustration. Upload story photo >

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As of July 2026, the U.S. Agency for Global Media (USAGM) incurs $1.6 million in weekly costs to keep 420 employees on administrative leave. This expenditure follows a March 2025 reorganization effort that saw mass personnel cuts and leaves enacted across the government-funded news organization.

Why it matters

The administration initiated this strategy to shrink the agency, citing taxpayer costs, though a federal judge later intervened to block proposed mass layoffs. These ongoing payroll obligations highlight the operational and legal risks of attempting rapid workforce restructuring without established career official oversight.

The agency pays $1.6 million weekly to 420 staffers on leave, representing a significant portion of its total federal workforce of 1,147. Additionally, the agency previously cut 594 of its 602 contract workers in March 2025.

The players

Kari Lake

A politician who acted as the agency CEO and characterized the outlet as a taxpayer burden.

Michael Abramowitz

An official who has been on administrative leave since March 2025.

Sarah B. Rogers

An official who expects to hire and bring back some staff members.

Donald Trump

The current President of the United States who mandated agency downsizing.

The details

Reorganization decisions were made by political leadership and U.S. DOGE Service personnel without input from senior career officials. Following these actions, a federal judge ruled that Kari Lake was illegally acting as the agency's CEO and struck down the mass layoff plan. President Donald Trump had previously issued an executive order requiring the agency to be reduced to the minimum function required by law.

Timeline

  1. In March 2025, the agency slashed its workforce and placed employees on leave.

  2. As of July 2026, the agency pays $1.6 million weekly for staff on administrative leave.

  3. An inspector general report is scheduled for publication in October 2026.

Market Landscape

This development follows the U.S. Agency for Global Media reorganization directive aimed at reducing federal news operations. It mirrors broader challenges in public-sector management when executive mandates face judicial intervention and operational paralysis.

Operators should monitor how judicial rulings on leadership authority affect their ability to implement workforce changes. The high cost of administrative leave underscores the necessity of ensuring personnel actions comply with established legal requirements before execution.

The takeaway

Management must account for potential judicial reversal when initiating large-scale workforce reductions or organizational restructuring. Review all personnel transition plans with legal counsel to confirm that decision-making processes adhere to federal agency governance requirements.

What happens next

The inspector general report regarding these agency operations is scheduled for publication in October 2026.

Further reading

For broader insight into sector trends, visit the Media section.

Source note: This article includes information reported by The Detroit News.

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