The Office of Personnel Management and the Office of Management and Budget have launched a modernization initiative aimed at consolidating more than 100 outdated federal human resources systems into a single platform.
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Under the Federal HR 2.0 initiative, OPM said Wednesday federal agencies will transition to one Core Human Capital Management, or HCM, system, establishing it as the government’s unified system of record for personnel management.
“Today’s announcement is a major win for efficiency, accountability, and good government,” said OPM Director Scott Kupor. “By consolidating more than 100 systems into a single, modern HR platform, we are delivering billions in savings while giving agencies the tools they need to manage the federal workforce as one coordinated enterprise. This is exactly the kind of smart, cost-saving reform the American people expect and deserve.”
In a memo issued Wednesday, Kupor and OMB Director Russell Vought stated that the Core HCM platform will encompass several functions, including personnel action processing, employee system of record, employee and manager self-service, analytics and dashboards, position management, time and attendance, and learning.
According to the document, OPM is overseeing a procurement effort to identify a vendor to implement the new system.
What Are the Goals of Federal HR 2.0?
According to OPM, Federal HR 2.0 aims to eliminate duplicative systems and redundant contracts and improve HR service delivery through self-service tools, standardized workflows and real-time data integration.
The initiative also seeks to support agencies in hiring, retaining and managing talent and establish a governmentwide HR system designed to strengthen security and data integrity.
In the memo, Kupor and Vought noted that the transition to the Core HCM platform will occur in two waves to “allow for significant interagency feedback and collaboration to help ensure successful implementation.”
Wave 1 agencies, including the Departments of Homeland Security, Agriculture and Health and Human Services, are expected to begin the transition in fiscal year 2026.
The Department of Commerce, General Services Administration, the Department of War, NASA and other Wave 2 agencies will move to the new system in FY 2027.
What Federal Hiring Reforms Did OPM & OMB Announce?
In November, OPM and OMB issued new guidance introducing stricter oversight of federal hiring. The directive requires agencies to justify each position in alignment with administration priorities and to limit new hires until detailed staffing plans are approved.
In September, OPM finalized a rule replacing the longstanding “rule of three” with the “rule of many” to modernize federal hiring. According to the agency, the rule applies to competitive and excepted service appointments and is designed to ensure agencies select candidates based on practical skills and merit as assessed through skills-based evaluations.
