Administration Sets Updated Timeline for Unified Federal HR System

The Trump Administration detailed updated plans to create a single, unified human resources software system for all of the federal government. 

In a joint memo, the Office of Personnel Management (OPM) and the Office of Management and Budget (OMB) announced updated information on their plan to create “Federal HR 2.0,” by consolidating the more than 100 unique Core Human Capital Management (HCM) software systems across numerous agencies, into a single system. 

The initiative was initially announced in October.

OPM and OMB say the current system wastes money and is cumbersome. 

“Outdated and duplicative Core HCM systems waste taxpayer money, hurt the Federal Government’s operational efficiency, make it costly to gather and report on critical human resources (HR) data, and burden Federal agencies and employees with delays and unnecessary work,” wrote OPM Director Scott Kupor and OMB Director Russell Vought in the memo. 

OPM and OMB say the new platform will encompass a slew of HR functions including personnel action processing, employee system of record, position management, employee and manager self-service, analytics and dashboards, time and attendance, and learning. It will also integrate with other federal HR systems like payroll, retirement, and performance management to “ensure a seamless flow of information across various HR functions.”

OPM is leading the procurement effort with the goal of having the new system fully in place by FY 2028. The contract could be announced as soon as January. 

Two-Phase Transition 

The transition into the new system will be divided into two waves, with the first wave beginning in FY 2026, and Wave 2 agencies in FY 2027. Wave 1 agencies include those who proactively raised their hands for inclusion, including the Department of Homeland Security (DHS), the Department of Veterans Affairs (VA), the Department of Health and Human Services (HHS), and the U.S. Department of Agriculture (USDA). 

“This approach will allow for significant interagency feedback and collaboration to help ensure successful implementation,” stated the memo, with the transition expected to take about eight months.

Agencies were also asked to pause their own Core HCM procurement, development, and related modernization projects. Exceptions are available from OPM for “critical” or “time-sensitive” projects. 

Agencies are also told to identify personnel to support the HR 2.0 initiative and to review agency data and systems to get ready for the transition.