The Department of Health and Human Services has transitioned its payroll system to the cloud as part of a push to accelerate service delivery, improve interoperability and advance the shift to a shared human resource platform.
The department’s move to a cloud-based payroll system highlights the kind of digital transformation reshaping federal operations today. Government leaders driving AI adoption and enterprise IT modernization efforts will share insights at the 2026 Digital Transformation Summit on April 22. Register now!
HHS said Wednesday the replacement of the COBOL-based payroll system seeks to address increasing operational complexity and rising maintenance costs tied to outdated systems that relied on manual processes, mainframe-dependent code and limited documentation.
“This milestone demonstrates that HHS is not only transforming its legacy systems but leading the way for innovation across the federal government,” said Clark Minor, chief information officer at HHS. “By replacing outdated technology and driving collaboration across agencies, we are increasing efficiency, strengthening security, and delivering more reliable, higher-quality services to the American people.”
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How Did HHS Execute the Payroll System Modernization Effort?
HHS worked with the Federal Aviation Administration and the Defense Finance and Accounting Service over an eight-month period to execute the transition.
HHS managed the design, development and deployment of the cloud-based system and collaborated with FAA to analyze complex business logic and map system dependencies. The three agencies conducted end-to-end testing to validate performance, accuracy and interoperability.
How Does This Effort Align With Federal HR & HHS IT Initiatives?
The payroll system modernization aligns with the Federal HR 2.0 initiative launched by the Office of Personnel Management and the Office of Management and Budget in December. Federal HR 2.0 seeks to consolidate more than 100 outdated federal HR systems into one Core Human Capital Management platform.
The effort comes as HHS moves to realign its technology leadership structure by returning enterprise IT, cybersecurity, data and artificial intelligence responsibilities to the Office of the CIO.
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