The Office of Personnel Management (OPM):
July 20, 2021
An Overview
Taylor N. Riccard
An Overview
Updated October 20, 2026
(R46833)
Jump to Main Text of Report
Summary
The Office of Personnel Management (OPM) is authorized by statute to perform various duties The Office of Personnel Management (OPM) is authorized by statute to perform various duties
Analyst in Government
and functions that are related to human resources management and personnel policies for the and functions that are related to human resources management and personnel policies for the
Organization and
federal government. The antecedent of OPM may be traced to the enactment of the Civil Service federal government. The antecedent of OPM may be traced to the enactment of the Civil Service
Management
Act of 1883, known as the Pendleton Act, which statutorily established some underlying aspects Act of 1883, known as the Pendleton Act, which statutorily established some underlying aspects
of todayof today
’'s federal personnel system. The act also established the Civil Service s federal personnel system. The act also established the Civil Service
Commis sion Commission (CSC), which was originally intended to insulate the hiring and management of federal (CSC), which was originally intended to insulate the hiring and management of federal
employees from partisan political influence. employees from partisan political influence.
The CSC continued with much the same role until The CSC continued with much the same role until
1978, when Congress passed the Civil Service Reform Act and replaced the CSC with OPM.1978, when Congress passed the Civil Service Reform Act and replaced the CSC with OPM.
OPM identifies a number of OPM currently identifies several areas central to its work that are referred to as areas central to its work that are referred to as
“"key functions,key functions,
”" including human capital including human capital
management, administration of federal employee benefit programs, and the vetting of job candidates.management, administration of federal employee benefit programs, and the vetting of job candidates.
OPM’
OPM's funding is included in the annual Financial Services and General Government Appropriations Act. For s funding is included in the annual Financial Services and General Government Appropriations Act. For
FY2021, OPM’FY2026, OPM's operating budget—including discretionary appropriations, mandatory administrative authorities, revolving fund s operating budget—including discretionary appropriations, mandatory administrative authorities, revolving fund
activities, advance and reimbursements, and Office of activities, advance and reimbursements, and Office of
the Inspector General (OIG) discretionary appropriations—was $Inspector General (OIG) discretionary appropriations—was $
1.05 billion920,950,825, and the agency had 2,, and the agency had 2,
737.9171.2 full-time-equivalent employees. full-time-equivalent employees.
This report discusses OPMThis report discusses OPM
’'s establishment, statutory authority, mission, key functions, organization, budget, and s establishment, statutory authority, mission, key functions, organization, budget, and
performance. It also identifies potential politicization of the civil service and the reorganization and modernization of OPM as issues for congressional oversight. It raises several questions under each issue for Congress to consider. It also discusses the recommendations published in the National Academy of Public Administration’s (NAPA) report “Elevating Human
Capital: Reframing the U.S. Office of Personnel Management’s Leadership Imperative,” which was published in 2021 pursuant to a statutory mandate.
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Contents
Establishment of OPM ..................................................................................................... 1
Statutory Authority.......................................................................................................... 1
Mission, Key Functions, and Organization .......................................................................... 2
OPM’s Operating Budget ................................................................................................. 6
Performance ................................................................................................................... 8
Issues for Congressional Oversight .................................................................................... 9
Selected Oversight Issues............................................................................................ 9
NAPA Recommendations for OPM ............................................................................ 12
Figures
Figure 1. Organization Chart for OPM (January 2021) .......................................................... 5
Tables
Table 1. OPM Operating Budget, by Fund, FY2020-FY2022 ................................................. 7
Contacts
Author Information ....................................................................................................... 13
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The Office of Personnel Management (OPM): An Overview
Establishment of OPM
The creation of the Office of Personnel Management (OPM)performance. In practice, OPM's role in federal workforce management spans a spectrum, from functions in which it exercises substantial government-wide authority and oversight to those in which it establishes broad requirements and delegates more discretion to individual executive branch agencies. This report discusses three examples of workforce activities—hiring, performance, and reductions in force—where this balance between centralization within OPM and delegation to agencies can be analyzed. Finally, this report raises several issues for congressional consideration regarding OPM's role in implementing federal workforce reforms, OPM's capacity to deliver on its mission, and potential trade-offs associated with the varying degrees to which workforce management is centralized within OPM.
Introduction
The Office of Personnel Management (OPM) is the federal government's central human resources agency and is responsible for providing leadership and oversight of the federal civilian workforce. The antecedent of OPM may be traced to the enactment of may be traced to the enactment of
the Civilthe Civil
Service Act of 1883, known as the Pendleton Act,Service Act of 1883, known as the Pendleton Act,
1 which established in statute which statutorily established some some
underlying aspects of todayunderlying aspects of today
’'s federal personnel system.s federal personnel system.
1 Prior to the Pendleton Act, according to Prior to the Pendleton Act, according to
OPM’s description of the system before 1883, “OPM, "[f]ederal employment was largely based on [f]ederal employment was largely based on
political affiliationpolitical affiliation
or personal connections, a system known as the or personal connections, a system known as the
‘'spoils system,spoils system,
’' rather than rather than
applicants’applicants' knowledge, knowledge,
skil sskills, and abilities., and abilities.
”2"2 The Pendleton Act and the resulting merit system, The Pendleton Act and the resulting merit system,
OPM says, OPM says,
“"ushered in a new era and created a competitive civil service, which emphasized an ushered in a new era and created a competitive civil service, which emphasized an
applicant’applicant's relative levels relative level
of qualifications for the position being sought, after fair and open of qualifications for the position being sought, after fair and open
competition.competition.
”3"3 The act established the Civil Service Commission, which was intended to insulate The act established the Civil Service Commission, which was intended to insulate
the hiring and management of federal employees from partisan political influence.the hiring and management of federal employees from partisan political influence.
4 The
commission4
The Civil Service Commission continued with much the same role until the enactment of the Civil Service Reform continued with much the same role until the enactment of the Civil Service Reform
Act of 1978 (CSRAAct of 1978 (CSRA
; P.L. 95-454), which created OPM.), which created OPM.
55 The CSRA authorized significant leadership roles in The CSRA authorized significant leadership roles in
federal human resources management and personnel policy for OPM.federal human resources management and personnel policy for OPM.
66 By consolidating human By consolidating human
resources leadership within OPM, Congress intended for the agency resources leadership within OPM, Congress intended for the agency
“"to concentrate on planning to concentrate on planning
and administering an effective government-wide program of personnel management.and administering an effective government-wide program of personnel management.
”7 "7
Statutory Authority
General y
Generally, the statutory provisions governing OPM are , the statutory provisions governing OPM are
locatedcodified in Title 5 of the in Title 5 of the
United States
U.S. Code and, and,
in particularspecifically, in Chapter 11. Section 1103(a) of Title 5 vests the OPM director with , in Chapter 11. Section 1103(a) of Title 5 vests the OPM director with
fulfil ing fulfilling various functions, including various functions, including
“"executing, administering, and enforcing (A) the civil executing, administering, and enforcing (A) the civil
service rules and regulations … and the laws governing the civil service; and (B) the other service rules and regulations … and the laws governing the civil service; and (B) the other
activities of activities of
the Office[OPM] including retirement and classification activities; except with respect to including retirement and classification activities; except with respect to
functions for which the Merit Systems Protection Board or the Special Counsel is primarily functions for which the Merit Systems Protection Board or the Special Counsel is primarily
responsible.”8
responsible."8
In addition, the OPM director is responsible for In addition, the OPM director is responsible for
“"aiding the President … in preparing such civil aiding the President … in preparing such civil
service rules as the President prescribes, and otherwise advising the President on actions which service rules as the President prescribes, and otherwise advising the President on actions which
may be taken to promote an efficient civil service and a systematic application of the merit may be taken to promote an efficient civil service and a systematic application of the merit
system principles, including recommending policies relating to the selection, promotion, transfer, system principles, including recommending policies relating to the selection, promotion, transfer,
performance, pay, conditions of service, tenure, and separation of employees.”9
1 P.L. 16; Civil Service Act of 1883; January 16, 1883 (22 Stat. 403). T his law is discussed for historical context in CRS Report RL30795, General Managem ent Laws: A Com pendium , by Clinton T . Brass et al. (available to congressional clients upon request), in the section titled “ T itle 5, Part III—Employees,” by Barbara Schwemle.
2 OPM, Annual Performance Report: Fiscal Year 2020, January 2021, https://www.opm.gov/about-us/budget-performance/performance/2020-annual-performance-report.pdf.
3 OPM, Annual Performance Report: Fiscal Year 2020. 4 See CRS Report RL30795, General Management Laws: A Compendium , by Clinton T . Brass et al. (available to congressional clients upon request), in the section titled “ T itle 5, Part II—Civil Service Functions and Responsibilities,” by Barbara Schwemle, p. 248. 5 Ibid., p. 245. See also “ Reorganization Plan No. 2 of 1978,” May 23, 1978 (92 Stat. 3783). 6 Ibid., p. 248. 7 Ibid. 8 5 U.S.C. §1103(a). 9 5 U.S.C. §1103(a).
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The Office of Personnel Management (OPM): An Overview
performance, pay, conditions of service, tenure, and separation of employees."9
Under Section 1103(a), the directorUnder Section 1103(a), the director
’'s responsibilities also include, among others, s responsibilities also include, among others,
"securing securing
accuracy, uniformity, and justiceaccuracy, uniformity, and justice
" in OPM in OPM
’'s functions; s functions;
"appointing individuals to be employedappointing individuals to be employed
" by the agency; ; directing and supervising directing and supervising
those employees; employees;
"distributing business among distributing business among
[OPM's] employees and organizational employees and organizational
unitsunits
"; "; directing directing
the [agency's] internal managementinternal management
"; and ; and
"directing the preparation of requests for appropriations directing the preparation of requests for appropriations
… and the use and expenditure of fundsand the use and expenditure of funds
.10
The agency’s website explains that “the " for and by OPM.10
The Office of the Director Office of the Director
"provides guidance, leadershipprovides guidance, leadership
, and and
direction necessary to direction necessary to
fulfil the agency’s mission and makeachieve OPM's mission to lead and serve the Federal Government the Federal Government
the model
employer in the United States.”11
Section 1303 of by delivering policies and services to achieve a trusted, effective civilian workforce."11
Section 1303 of the Chief Human Capital Officers Act of 2002 (P.L. 107-296)P.L. 107-296, enacted on November 25, 2002, established the Chief Human , enacted on November 25, 2002, established the Chief Human
Capital Officers Council. The council members include the OPM director, the deputy director for Capital Officers Council. The council members include the OPM director, the deputy director for
management of the Office of Management and Budget, and the chief human capital officers from management of the Office of Management and Budget, and the chief human capital officers from
27 departments and agencies.27 departments and agencies.
1212 The OPM director acts as chairperson of the council, which is The OPM director acts as chairperson of the council, which is
required to required to
“meet periodical y"meet periodically to advise and coordinate the activities of the agencies of its to advise and coordinate the activities of the agencies of its
members on such matters as modernization of human resources systems, improved quality of members on such matters as modernization of human resources systems, improved quality of
human resources information, and legislation affecting human resources operations and human resources information, and legislation affecting human resources operations and
organizations.”13 organizations."13
Mission, Key Functions, and Organization
As the federal governmentAs the federal government
’'s central personnel agency, OPM has responsibilities related to human s central personnel agency, OPM has responsibilities related to human
capital management, administration of federal employee benefit programs, and vetting of job capital management, administration of federal employee benefit programs, and vetting of job
candidates. The agency describes itself as follows on its website:
OPM serves as the chief human resources agency and personnel policy manager for the Federal Government. OPM provides human resources leadership an d support to Federal agencies and helps the Federal workforce achieve their aspirations as they serve the American people. OPM directs human resources and employee management services, administers retirement benefits, manages healthcare and insurance programs, oversees merit-based and inclusive hiring into the civil service, and provides a secure employment process.14
candidates. In recent years, OPM has included a mission statement and a list of core values in its strategic In recent years, OPM has included a mission statement and a list of core values in its strategic
plans. For example, the agencyplans. For example, the agency
’s A New Day for Federal Service: Strategic Plan 2010-2015 mission statement was “Recruit, Retain and Honor a World-Class Workforce to Serve the American People.”15 OPM listed several values in the plan, including service, respect, integrity, diversity, enthusiasm, excel ence, and innovation.16 The mission statement and values remained
unchanged in the Strategic Plan 2014-2018.17
10 5 U.S.C. §1103(a). 11 OPM, “About Us: Our People and Organization,” https://www.opm.gov/about-us/our-people-organization/office-of-the-director/. 12 Chief Human Capital Officers Council, “About the Council,” https://www.chcoc.gov/content/about-council. 13 5 U.S.C. §1401 note. 14 OPM, “Our Agency,” https://www.opm.gov/about-us/. 15 OPM, A New Day for Federal Service: Strategic Plan 2010-2015, p. 4, archived at https://web.archive.org/web/20130227161503/http://www.opm.gov/about-us/budget-performance/strategic-plans/2010-2015-strategic-plan.pdf.
16 OPM, A New Day for Federal Service. 17 OPM, Strategic Plan 2014-2018, pp. 6-7, archived at https://www.opm.gov/about-us/budget-performance/strategic-plans/2014-2018-strategic-plan.pdf.
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The Office of Personnel Management (OPM): An Overview
Most recently, OPM Strategic Plan Fiscal Years 2018-2022 revised the mission statement to read, “We lead and serve the Federal Government in enterprise human resources management by delivering policies and services to achieve a trusted effective civilian workforce.” In addition, the core values included innovation, integrity, excel ence, service, and leadership.18 The plan stated that OPM “works in several broad categories to lead and serve the Federal Government in enterprise human resource management by delivering policies and services to achieve a trusted
effective civilian workforce.”19
The strategic plan also identified “key functions” that are central to the work of the agency,
including the following:
Human Capital Management. OPM provides policy direction and leadership in designing, developing, and promulgating Government-wide human resources systems, programs, and policies that support the current and emerging needs of Federal agencies. In addition, OPM provides technical support and guidance to agencies regarding the full range of human resources (HR) management policies and practices.20
Benefits. OPM offers the availability of quality benefits for Federal's Strategic Plan: Fiscal Years 2026-2030 mission statement is "OPM leads federal agencies in building merit-based, accountable, and modern workforce systems that attract and retain top talent to meet America's toughest challenges."14
OPM's website identifies key functions that are central to the work of the agency, including the following:
Workforce Management. "OPM guides and supports federal agencies' workforce management [by] develop[ing] and oversee[ing] government-wide workforce policies and systems. [OPM is] responsible for certain government-wide personnel management activities, such as the pay classification system. [OPM] provide[s] technical support and guidance to help agencies successfully implement these policies and systems."15
Employee Benefits. OPM provides benefits for federal employees and their employees and their
families. The agency works to facilitate access to the high-caliber healthcare and insurance programs offered by the Federal Government,families. OPM administers policies and programs including health insurance services, dental including health insurance services, dental
and vision and vision benefits, flexiblebenefits, flexible
spending accounts, lifespending accounts, life
insurance; and long -term insurance, and long-term care care
insurance programs. OPM manages insurance benefits for more than eight million Federal employees, retirees, and their families. OPM also develops and administers programs that provide health insurance to uninsured Americans through Affordable Insurance Exchanges, and employees of tribes or tribal organizations. OPM is responsible for the administration of the Federal Retirement Program covering mo re than 2.7 million active employees, including the United States Postal Service, and nearly 2.6 million annuitants, survivors, and family members.21
Vetting. As the Suitability and Credentialinsurance programs. OPM is also responsible for administering comprehensive retirement savings programs.16
Vetting and Credentialing. As the Suitability and Credentialing Executive Agent,17 OPM's director Executive Agent, OPM’s Director is responsible is responsible
for prescribing suitability, fitness, and credentialing standards for employment; prescribing for prescribing suitability, fitness, and credentialing standards for employment; prescribing
position designation requirements with respect to position designation requirements with respect to
riskthe level of risk the position carries to the integrity and efficiency of the to the integrity and efficiency of the
service; prescribing applicableservice; prescribing applicable
investigative standards,investigative standards,
policies,policies,
and and procedures for procedures for
suitability, fitness, and credentialing; credentialing employees and for determining their suitability and fitness; prescribing reciprocity standards; andprescribing reciprocity standards; and
making making
suitability determinations and taking actions.… The OPM Director as the Suitability Executive Agent, issued National Training Standards for Suitability Adjudicators to support uniformity in the continued professional development of the suitability workforce and to promote reciprocal recognition of suitability determinations.22
To support OPM’suitability determinations and taking actions to enforce those determinations.18To support OPM's key functions, the agency is organized into program divisions, including (1) s key functions, the agency is organized into program divisions, including (1)
Employee Services; (2) Retirement Services; (3) Healthcare and Insurance; (4) Merit System Accountability and Compliance;Healthcare and Insurance, (2) Human Resources Solutions, (3) Merit System Accountability and Compliance, (4) Retirement Services, (5) Suitability Executive Agent (5) Suitability Executive Agent
;, and (6) Workforce Policy and Innovation.19 Figure 1 shows the organization chart for OPM, as obtained from OPM's FY2027 Congressional Budget Justification.
Figure 1. OPM Organizational Chart
Source: Office of Personnel Management (OPM), Congressional Budget Justification: Fiscal Year 2027, April 2026, p. 21, and (6) Human Resources
18 OPM, OPM Strategic Plan Fiscal Years 2018-2022, February 2018, p. 9, https://www.opm.gov/about-us/budget-performance/strategic-plans/2018-2022-strategic-plan.pdf.
19 OPM, OPM Strategic Plan Fiscal Years 2018-2022. 20 OPM, “About Us: Our Mission, Role and History,” https://www.opm.gov/about-us/our-mission-role-history/what-we-do/#url=Human-Capital-Management -Leadership.
21 OPM, “About Us: Our Mission, Role and History,” https://www.opm.gov/about-us/our-mission-role-history/what-we-do/#url=Benefits.
22 OPM, “About Us: Our Mission, Role and History,” https://www.opm.gov/about-us/our-mission-role-history/what-we-do/#url=Vetting.
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Solutions.23 Figure 1 shows the organization chart for OPM, as obtained from OPM’s Annual
Performance Report Fiscal Year 2020.
23 OPM, “About Us: Our People and Organization,” https://www.opm.gov/about-us/our-people-organization/office-of-the-director/.
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The Office of Personnel Management (OPM): An Overview
Figure 1. Organization Chart for OPM (January 2021)
Source: OPM, Annual Performance Report Fiscal Year 2020, January 2021, p. 12, https://www.opm.gov/https://www.opm.gov/
about-us/cbj-2026-pdfs/opm-fy-2027-congressional-budget-justification.pdf.
Note: CHCO Council = Chief Human Capital Officers Council.
OPM's Operating Budget
OPM'about-us/budget-performance/performance/2020-annual-performance-report.pdf.
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OPM’s Operating Budget
OPM’s activities are funded from multiple sources. s activities are funded from multiple sources.
Specifical y, OPM receives several sources of OPM receives several sources of
discretionary funds to support its program and leadership activitiesdiscretionary funds to support its program and leadership activities
.24 OPM also,20 and OPM manages certain manages certain
mandatory appropriations and related trust funds for federal employee benefits.mandatory appropriations and related trust funds for federal employee benefits.
2521 Several Several
statutory provisions authorize OPM to make certain trust fund transfers to cover OPMstatutory provisions authorize OPM to make certain trust fund transfers to cover OPM
’'s costs for s costs for
administering these programs. administering these programs.
Some of the more prominentPrincipal sources of funding for OPM sources of funding for OPM
’s
's administrative activities—which OPM refers to as its administrative activities—which OPM refers to as its
“"operating budgetoperating budget
”"—include the —include the
following:26
following:22The Salaries and Expenses appropriations account funds many of the core The Salaries and Expenses appropriations account funds many of the core
operations of OPM.operations of OPM.
2723 The functions and objectives of the agency The functions and objectives of the agency
’'s major s major
components are funded by this account, including employee services, merit components are funded by this account, including employee services, merit
system accountability and compliance, retirement services program, and system accountability and compliance, retirement services program, and
healthcare and insurance.healthcare and insurance.
28
24
The Office of the Inspector General (OIG) appropriations account funds OIG The Office of the Inspector General (OIG) appropriations account funds OIG
efforts to efforts to
“"protect the integrity of OPMprotect the integrity of OPM
’'s programs and operations. The OPM s programs and operations. The OPM
OIG’OIG's audits, investigations, evaluations, and administrative sanctions programs s audits, investigations, evaluations, and administrative sanctions programs
serve to prevent and detect fraud, waste, abuse, and mismanagement.serve to prevent and detect fraud, waste, abuse, and mismanagement.
”29
"25
Transfers from OPM-managed trust funds Transfers from OPM-managed trust funds
partial ypartially pay for some of OPM pay for some of OPM
’s
's activities. The agency is responsible for administering activities. The agency is responsible for administering
the civil service retirement civil service retirement
and insurance programs. The trust fund transfers and insurance programs. The trust fund transfers
partial ypartially fund Retirement fund Retirement
Services, Healthcare and Insurance, Planning and Policy Analysis, Office of the Services, Healthcare and Insurance, Planning and Policy Analysis, Office of the
Chief Information Officer, and Office of the Chief Financial Officer operations.Chief Information Officer, and Office of the Chief Financial Officer operations.
30
26
The Revolving Fund is The Revolving Fund is
“comprisedcomposed of fees or "charged to federal agency customers for personnel vetting, human resources solutions, and related services."27 Services funded by the Revolving Fund include background investigations, human resources services as well as related tools and technologies.28OPM's annual congressional budget justification typically includes detailed information about all the components of OPM' of fees or reimbursements provided by
agencies for services OPM provides for activities covered by the Fund.”31 Services funded by the Revolving Fund include “background investigations,
24 OPM’s annual congressional budget justification provides detailed budget information about OPM’s administrative activities. See OPM, Congressional Budget Justification and Annual Perform ance Plan Fiscal Year 2022, May 2021, https://www.opm.gov/about-us/budget-performance/budgets/congressional-budget-justification-fy2022.pdf. 25 OPM manages several mandatory spending programs that amount to tens of billions of dollars per year, including federal employee retirement systems, health insurance, and life insurance. T his CRS report focuses on OPM’s administrative budget rather than the mandatory spending programs, which “ finance the retirement program for approximately 2.8 million Federal civilian employees, and provide r etirement benefits for more than 2.8 million retirees and survivors, finance the health insurance for approximately 8.1 million employees, retirees, and their family members, and provide life insurance coverage for an estimated 4.2 million employees and re tirees.” OPM, Congressional Budget Justification and Annual Perform ance Plan Fiscal Year 2022, p. 79. For more information about the cost of the mandatory spending programs, see OPM, Agency Financial Report Fiscal Year 2020 , November 2020, https://www.opm.gov/about-us/budget-performance/performance/2020-agency-financial-report.pdf. 26 For reference to the “operating budget,” see OPM, Congressional Budget Justification and Annual Performance Plan
Fiscal Year 2022, p. 7.
27 OMB, Budget of the U.S. Government, FY2021, Appendix, p. 1211, https://www.whitehouse.gov/wp-content/uploads/2021/05/opm_fy22.pdf. See also OPM, Congressional Budget Justification Fiscal Year 2021 , February 2020, https://www.opm.gov/about-us/budget-performance/budgets/congressional-budget-justification-fy2021.pdf.
28 OMB, Budget of the U.S. Government, FY2021, Appendix, pp. 1211-1212. 29 OMB, Budget of the U.S. Government, FY2021, Appendix, pp. 1211-1212. 30 OPM, Congressional Budget Justification and Annual Performance Plan Fiscal Year 2019, February 2018, p. 7, https://www.opm.gov/about-us/budget-performance/budgets/congressional-budget-justification-fy2019.pdf.
31 OPM, Congressional Budget Justification and Annual Performance Plan Fiscal Year 2019, p. 7.
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human resources services as wel as related tools and technologies, such as USAJOBS.”32
OPM’s annual congressional budget justification typical y includes detailed information about al
of the components of OPM’s operating budgets operating budget
. Table 1, below,. Figure 2 provides more detailed provides more detailed
information from OPMinformation from OPM
’s FY2022's FY2027 budget justification. budget justification.
Table 1. OPM Operating Budget, by Fund, FY2020-FY2022
OPM Budget
Authority
FY2020 Enacted
FY2021 Enacted
FY2022 Requested
Discretionary
$299,762,000
$329,755,000
$372,000,000
Appropriationsa
Salaries and Expenses
$145,137,000
$160,130,000
$197,000,000
Totalb
Trust Fund Annual
$154,625,000
$169,625,000
$175,000,000
Totalc
Mandatory Administrative
$66,956,125
$74,328,075
$77,107,598
Authoritiesd
Revolving Funde
$857,237,726
$522,303,918
$549,618,781
Advance and
$169,255,203
$93,063,500
$14,204,123
Reimbursementsf
OIG Discretionary
$30,265,000
$32,265,000
$34,910,300
Appropriationsg
OPM Total
$1,423,476,054
$1,051,715,493
$1,047,840,802
Source: Adapted from OPM, Congressional Budget Justification and Annual Performance Plan Fiscal Year 2022, May 2021
Figure 2. OPM Budget by Fund, FY2025-2027
Source: Office of Personnel Management (OPM), Congressional Budget Justification: Fiscal Year 2027, April 2026, p. 7, https://www.opm.gov/, p. 7, https://www.opm.gov/
about-us/cbj-2026-pdfs/opm-fy-2027-congressional-budget-justification.pdf.
Note: OIG = Office of Inspector General; CBJ = congressional budget justification; FERCCA = Federal Erroneous Retirement Coverage Corrections Act.
For FY2026, OPM'about-us/budget-performance/budgets/congressional-budget-justification-fy2022.pdf. Notes:
a. Figures in the Discretionary Appropriations row are the sum of the Salaries and Expenses total and the
Trust Fund Annual Total.
b. The Salaries and Expenses total includes funds for personnel and non-personnel resources as wel as funds
for IT modernization efforts.
c. The Trust Fund Annual Total consists of transfers from trust funds that are subject to congressional
limitation in the Financial Services and General Government appropriations act. The transfers come from the Civil Service Retirement and Disability Fund, Federal Employees Health Benefits Fund, and Federal Employee’s Group Life Insurance Fund.
d. Figures in the Mandatory Administrative Authorities row reflect additional trust fund transfers for OPM’s
administration of certain retirement and insurance activities.
e. The Revolving Fund finances activities that OPM is required or authorized to perform on a reimbursable
basis and al ows OPM to provide personnel management services to other federal agencies via several programs.
f.
Advance and Reimbursements refers to anticipated advances and reimbursements from other federal agencies for activities outside of OPM’s revolving fund.
g. The OIG Discretionary Appropriations consist of funds for OIG’s core operations.
For FY2021, OPM’s operating budget—including discretionary appropriations, mandatory s operating budget—including discretionary appropriations, mandatory
administrative authorities, revolving fund activities, advance and reimbursements, and OIG administrative authorities, revolving fund activities, advance and reimbursements, and OIG
32 OPM, Congressional Budget Justification and Annual Performance Plan Fiscal Year 2019, p. 7.
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discretionary appropriations—was $1,051,715,493discretionary appropriations—was $920,950,825, and the agency had 2,, and the agency had 2,
737.9171.2 full-time- full-time-
equivalent employees.33 OPM also received $12,100,000 from P.L. 116-136, the Coronavirus Aid, Relief, and Economic Security Act, enacted on March 27, 2020.34 This funding was to be used for
“improvements in remote work capacity.”35
Performance
equivalent employees.29 For further discussion, see the "OPM Staffing and Budget Changes" section.
Performance
The Government Performance and Results Act The Government Performance and Results Act
(GPRA; P.L. 103-62) requires most agencies to set goals, measure requires most agencies to set goals, measure
performance, and report performance, and report
thethis information to Congress for potential use. information to Congress for potential use.
3630 OPM provides OPM provides
this its information in multiyear strategic plans, annual plans, and annual reports.information in multiyear strategic plans, annual plans, and annual reports.
3731 OPM explained that OPM explained that
its strategic plan for FY2018-FY2022 was intended to “guide the Agency’s efforts to lead and serve the Federal Government in enterprise human resources management by delivering policies and services to achieve a trusted effective civilian workforce.”38 This strategic plan highlighted
four primary agency goals and establishedits strategic plan for FY2026-FY2030 outlines three goals to "strengthen the federal workforce and modernize human capital management across government."32 This strategic plan highlights three primary agency goals and establishes a series of objectives and sub-objectives associated a series of objectives and sub-objectives associated
with each goal. OPM’s Annual Performance Report (APR) “provides an overview of OPM’s progress in implementing the strategies and achieving the objectives and goals in its FY 2018-FY 2022 Strategic Plan.”39 These primary goals were identified in 2018 and assessed in 2021 as
follows:
Goal 1: Transform hiring, pay, and benefits across the federal government to
attract and retain the best civilian work force.40 OPM’s FY2020 APR found that the agency met three out of four objectives associated with Goal 1 by the time the report was published.41
Goal 2: Lead the establishment and modernization of human capital information
technology and data management systems and solutions.42 OPM’s FY2020 APR found that the agency met one out of three objectives associated with Goal 2.43
Goal 3: Improve integration and communication of OPM services to federal
agencies to meet emerging needs.44 OPM’s FY2020 APR found that the agency met four out of five objectives and sub-objectives associated with Goal 3.45
33 OPM, Congressional Budget Justification and Annual Performance Plan Fiscal Year 2022. 34 OPM, Annual Performance Report Fiscal Year 2020, January 2021, p. 6, https://www.opm.gov/about-us/budget-performance/performance/2020-annual-performance-report.pdf.
35 OPM, Annual Performance Report Fiscal Year 2020, p. 6. 36 For discussion, see CRS Report R42379, Changes to the Government Performance and Results Act (GPRA):
Overview of the New Fram ework of Products and Processes, by Clinton T . Brass.
37 OPM, “Budget and Performance,” https://www.opm.gov/about-us/budget-performance/. 38 OPM, “Budget and Performance.” 39 OPM, Annual Performance Report Fiscal Year 2020, p. 7. 40 OPM, OPM Strategic Plan Fiscal Years 2018-2022. 41 OPM, Annual Performance Report Fiscal Year 2020, p. 23. 42 OPM, OPM Strategic Plan Fiscal Years 2018-2022. 43 OPM, Annual Performance Report Fiscal Year 2020, p. 24. 44 OPM, OPM Strategic Plan Fiscal Years 2018-2022. 45 OPM, Annual Performance Report Fiscal Year 2020, pp. 25-26.
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Goal 4: Optimize agency performance.46 OPM’s FY2020 APR found that the
agency met three out of 10 objectives and sub-objectives associated with Goal 4 by the time the report was published.47
Issues for Congressional Oversight
Issues related to potential politicization of the civil service and reorganization and modernization of OPM may be of interest to Congress for oversight purposes. Additional y, in 2021, the National
Academy of Public Administration (NAPA) released a statutorily required report recommending a
number of objectives for OPM to implement.48
Selected Oversight Issues
Some observers have expressed concerns about potential politicization of the civil service by employees “burrowing in”—that is, the process of political appointees being converted to civil service positions during a presidential transition.49 This practice is of interest because “[u]nlike political appointments, civil service positions do not terminate at the end of an administration.
Conversion therefore al ows political appointees to stay in government after the president who appointed them has left office.”50 Observers suggest that this practice may not align with merit system principles that were intended to prevent nepotism and political favoritism in the civil
service.51
OPM is statutorily tasked with overseeing the conversion of political appointees into civil service positions.52 In 2018, OPM issued a memorandum outlining changes to their oversight practices in response to P.L. 114-136, the Edward “Ted” Kaufman and Michael Leavitt Presidential Transitions Improvements Act of 2015, enacted on March 18, 2016.53 Agencies are required to
“submit a request to OPM whenever they seek to hire a current political appointee or one who has served in a political position within the last five years.” In addition, “OPM conducts multi-level reviews of each application to make sure the conversion follows federal hiring guidelines.”54 A
report published in 2017 by the Government Accountability Office found that
46 OPM, OPM Strategic Plan Fiscal Years 2018-2022. 47 OPM, Annual Performance Report Fiscal Year 2020, pp. 26-27. 48 Section 1112(b) of P.L. 116-92, the National Defense Authorization Act for FY2020, enacted on December 20, 2019, required the OPM director to contract with NAPA to conduct this study. NAPA, Elevating Hum an Capital: Refram ing
the U.S. Office of Personnel Management’s Leadership Imperative, March 17, 2021, https://s3.us-west-2.amazonaws.com/napa-2021/studies/united-states-office-of-personnel-management-independent -assessment/OPM-Final-Report -National-Academy-of-Public-Administration.pdf.
49 See CRS Insight IN11538, Presidential Transitions: An Overview, by L. Elaine Halchin. 50 Alex T ippett and T roy Cribb, “ Political Appointee to Civil Servant: What the Public Should Know About ‘Burrowing In,’” Partnership for Public Service Center for Presidential T ransition, October 14, 2020, https://presidentialtransition.org/blog/political-appointee-burrowing-in/.
51 T ippett and Cribb, “ Political Appointee to Civil Servant .” See also U.S. Merit Systems Protection Board, “T he Merit System Principles: Keys to Managing the Federal Workforce,” October 2020, https://www.mspb.gov/mspbsearch/viewdocs.aspx?docnumber=1371890&version=1377261&application=ACROBAT . 52 Ibid.[which one?] 53 Kathleen McGettigan, “Political Appointees and Career Civil Service Positions,” OPM, February 23, 2018, https://www.chcoc.gov/content/political-appointees-and-career-civil-service-positions-3.
54 McGettigan, “Political Appointees and Career Civil Service Positions.”
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OPM approved 78 of 99 requests to convert political appointees to career positions agencies proposed to complete from January 1, 2010, through March 17, 2016. OPM denied 21 requests for varying reasons, such as bypassing qualified veterans, and referred 9 denied cases to the Office of Special Counsel (OSC). Of the 78 approved requests, agencies followed through and converted 69 political appointees to career positions. During the period, agencies completed 7 conversions without obtaining OPM approval; OPM completed post-appointment reviews for 4 of these 7 conversions, denying all 4. For each of the 4 denied cases, the agencies undertook various remedies, such as re-advertising positions, in response to OPM’s concerns. OPM did not complete a review for the 3 other conversions because the appointees were no longer in the career positions to which they were converted.55
Congress may consider several questions with regard to “burrowing in,” including the adequacy and transparency of OPM’s current oversight practices and the role of federal agencies in
evaluating political appointee conversions.
Another possible issue for congressional oversight relates to the potential reorganization of OPM. The Trump Administration proposed to merge OPM with a renamed Government Services Agency (GSA; currently the General Services Administration).56 This plan would have
transferred most of OPM’s functions and authorities to GSA.57 It also suggested establishing an Office of Federal Workforce Policy in the Office of Management and Budget (OMB) to assume OPM’s policy responsibilities.58 Former OMB director Russel Vought wrote a letter to House
Speaker Nancy Pelosi about the merger plan that stated:
The primary purpose of the legislative proposal is to authorize the transfer of the vast majority of the current functions and resources of OPM to GSA, including Human Resources Solutions, Information Technology, Retirement, Health and Insurance Services. GSA will create a new Personnel Service to house the h uman resources and employee lifecycle management shared service offerings. Agencies will benefit from GSA helping them to obtain more strategic and comprehensive support for their needs.59
Subsequent hearings conducted by the Senate Committee on Homeland Security and Governmental Affairs and the House Committee on Oversight and Reform received testimony
that expressed process and policy concerns about the Administration’s proposal.60
Further, Congress acted with legislation in response. In particular, Section 1112 of P.L. 116-92, the National Defense Authorization Act for FY2020,61 required an independent study and report
from NAPA to include:
55 U.S. Government Accountability Office, Actions Needed to Improve Documentation of OPM Decisions on
Conversion Requests, GAO-17-674, August 2017, https://www.gao.gov/assets/gao-17-674.pdf. 56 For discussion, see CRS Insight IN11110, Administration Proposal to Reorganize the U.S. Office of Person nel
Managem ent (OPM), coordinated by Barbara L. Schwemle.
57 Erich Wagner, “White House’s OPM-GSA Merger Bill Gives an Unconfirmed Appointee Authority Over Personnel Rules,” Government Executive, May 16, 2019, https://www.govexec.com/management/2019/05/white-houses-opm-gsa-merger-bill-gives-unconfirmed-appointee-authority-over-personnel-rules/157085/.
58 Wagner, “White House’s OPM-GSA Merger Bill.” 59 Wagner, “White House’s OPM-GSA Merger Bill.” 60 U.S. Congress, Senate Committee on Homeland Security and Governmental Affairs, Subcommittee on Regulatory Affairs and Federal Management, The Challenges and Opportunities of the Proposed Governm ent Reorganization on
OPM and GSA, Hearing, 115th Cong., 2nd sess., July 26, 2018 (Washington, DC: GPO, 2019); and U.S. Congress, House Committee on Oversight and Reform, Subcommittee on Government Operations, The Adm inistration’s War on
a Merit Based Civil Service, Hearing, 116th Cong., 1st sess., May 21, 2019 (Washington, DC: GPO, 2019). 61 133 Stat. 1198, at 1601, December 20, 2019.
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link to page 15 The Office of Personnel Management (OPM): An Overview
a comprehensive assessment and analysis of—(A) the statutory mandates assigned to the
Office of Personnel Management and the challenges associated with the Office’s execution of those mandates; (B) the non-statutory functions, responsibilities, authorities, services, systems, and programs performed or executed by the Office of Personnel Management; the
Office’s justification for carrying out such functions, responsibilities, authorities, services, systems, and programs; and the challenges associated with the Office’s execution of same; (C) the means, options, and recommended courses of action for addressing the challenges identified pursuant to subparagraphs (A) and (B), including an analysis of the benefits, costs, and feasibility of each option and the effect of each on labor-management agreements; (D) a timetable for the implementation of options and recommended courses of action identified pursuant to subparagraph (C); (E) statutory or regulatory changes necessary to execute any course of action recommended; (F) the methods for involving, engaging with, and receiving input from other Federal agencies, departments, and entities potentially affected by any change in the structure, functions, responsibilities, authorities of the Office of Personnel Management that may be recommended; (G) the views of identified stakeholders, including other Federal agencies, departments, and entities; non-Federal entities or organizations representing customers or intended beneficiaries of Office of Personnel Management functions, services, systems, or programs; and such individual customers and intended beneficiaries; and (H) such other matters as the Director may prescribe.62
The statute also provides that not later than 180 days after the NAPA report is submitted to the OPM director and the congressional committees, the OPM director—in consultation with GSA, OMB, and other appropriate federal agencies, departments, or entities—shal submit a report to the congressional committees. The report is to include OPM’s views on the findings and recommendations of the NAPA report “together with any recommendations for changes in the structure, functions, responsibilities, and authorities” of OPM. In addition, the provision states,
“Any recommendation submitted in the report … for change shal be accompanied by a business case analysis setting forth the operational efficiencies and cost savings (in both the short and long-terms) associated with such change, and a proposal for legislative or administrative action
required to effect the change proposed.”63
The law further provides, “No person may assign, transfer, transition, merge, or consolidate any function, responsibility, authority, service, system, or program that is assigned in law to the Office of Personnel Management to or with the General Services Administration, the Office of Management and Budget, or the Executive Office of the President, until on or after the date that is
180 days after the date on which the report required” from OPM is submitted to the House and Senate Committees on Appropriations, the Senate Committee on Homeland Security and Governmental Affairs, and the House Committee on Oversight and Reform “and subject to the
enactment of any legislation required.”64
Ultimately, the Trump Administration reportedly decided to abandon the plan.65 Such a proposal may, however, cause some to raise questions regarding OPM’s role in federal human resources management, including whether OPM’s organizational structure should be altered, whether OPM
62 133 Stat. 1602. See this CRS report’s section on “NAPA Recommendations for OPM” for discussion of the NAPA report, which was submitted on March 17, 2021. 63 133 Stat. 1602-1603. 64 133 Stat. 1601-1602. 65 Erich Wagner, “OPM Quietly Abandons Proposed Merger with GSA,” Government Executive, October 30, 2020, https://www.govexec.com/management/2020/10/opm-quietly-abandons-proposed-merger-gsa/169692/.
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should continue to be the primary agency tasked with significant responsibilities related to human
capital management, and OMB’s role (if any) in federal personnel policy.
Stil another issue for congressional oversight relates to modernization of OPM and federal hiring
practices. Some observers suggest that OPM should modernize its hiring practices to stay competitive with private sector employers. Executive Order (E.O.) 13932, “Modernizing and Reforming the Assessment and Hiring of Federal Job Candidates,”66 issued by President Donald Trump on June 26, 2020, sought to alter the federal hiring process by removing potential y unnecessary education qualifications to ensure that the federal hiring process is merit-based.67
The changes mandated by the E.O. were reportedly intended to “most especial y help with positions in the emerging technologies field, where some agencies have struggled to fil positions.”68 A recent U.S. Merit Systems Protection Board study found that agencies are relying more often on direct hire authorities to compete for talent.69 According to the report “agencies used direct hire authorities to make 28,000 appointments in fiscal 2018.”70 In reviewing this issue, Congress may consider whether OPM should encourage agencies to continue using direct hire
authorities, how OPM has implemented E.O.13932, the E.O.’s effect on the federal workforce, and whether a reduced reliance on education requirements in federal hiring would al ow the
federal government to better compete with the private sector for talent.
NAPA Recommendations for OPM
On March 17, 2021, NAPA released a congressional y mandated report on OPM, which included 23 recommendations for the agency.71 The first recommendation in the report stated that OPM’s statutory authority (codified at Title 5, Section 1101, of the U.S. Code) should be amended “to
clarify and redefine the role and mission of OPM as the federal government’s enterprise wide, independent human capital agency and steward of the merit system for al civilian personnel systems and employees, responsible for providing government-wide leadership in strategic human capital management.”72 Another recommendation stated that OPM should “(1) redefine the OPM mission statement and restructure the organization to effectively and efficiently execute
the reframed mission priorities and (2) restore the agency’s reputation for human capital leadership, expertise, and service by redirecting the internal culture and rebuilding internal staff
capacity.”73
66 Executive Order 13932, “Modernizing and Reforming the Assessment and Hiring of Federal Job Candidates,” 85
Federal Register 39457, July 1, 2020.
67 See CRS Insight IN11490, Executive Order 13932 on Assessing and Hiring Job Candidates in Federal Agencies, by T aylor N. Riccard. 68 Jessie Bur, “Degree Requirements Are on the Way out for Federal Jobs,” Federal Times, August 3, 2020, https://www.federaltimes.com/management/hr/2020/08/03/degree-requirements-are-on-the-way-out-for-federal-jobs/.
69 U.S. Merit Systems Protection Board, Office of Policy and Evaluation, Direct-Hire Authority Under 5 U.S.C. §3304:
Usage and Outcom es, February 2021, https://www.mspb.gov/MSPBSEARCH/viewdocs.aspx?docnumber=1803830%20&version=1810102&application=ACROBAT . “ Direct -hire authorities (DHAs) allow agencies to use streamlined procedures to appoint new employees without regard to some key merit syst em and public policy provisions, such as applicant rating and ranking and veterans’ preference.” 70 U.S. Merit Systems Protection Board, Office of Policy and Evaluation, Direct-Hire Authority Under 5 U.S.C. §3304. 71 NAPA, Elevating Human Capital: Reframing the U.S. Office of Personnel Management’s Leadership Imperative, March 17, 2021, https://s3.us-west-2.amazonaws.com/napa-2021/studies/united-states-office-of-personnel-management -independent -assessment/OPM-Final-Report-National-Academy-of-Public-Administration.pdf.
72 NAPA, Elevating Human Capital, p. 3. 73 NAPA, Elevating Human Capital, pp. 3-4.
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NAPA included a number of objectives associated with each recommendation. Each recommendation, if implemented, is designed to yield specific intended outcomes. The report
explains:
Successful implementation should yield the following results: Human capital is recognized and supported as a strategic priority across government by the Administration, the Congress, and federal agencies. OPM’s role is reaffirmed and strengthened as the leader for strategic human capital management government-wide. OPM’s approach to human capital management evolves from predominantly compliance-oriented to customer-focused, value-added, data-driven and forward-looking encouraging innovation and sharing of best practices.74
In a press conference about the report, the president of NAPA, Terry Gerton, said, “We strongly
recommend that a central personnel agency continue to exist, and that organization is an independent, enterprise-wide human capital agency and a steward of the merit system principles.”75 In the statute requiring the NAPA report, Congress gave OPM six months to provide a formal response.76 As of the time of this writing, OPM has not yet submitted its response to Congress. The NAPA report and the upcoming OPM response may present an array of issues for
continued congressional consideration regarding OPM.
Author Information
Taylor N. Riccard
Analyst in Government Organization and Management
Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan shared staff to congressional committees and Members of Congress. It operates solely at the behest of and under the direction of Congress. Information in a CRS Report should n ot be relied upon for purposes other than public understanding of information that has been provided by CRS to Members of Congress in connection with CRS’s institutional role. CRS Reports, as a work of the United States Government, are not subject to copyright protection in the United States. Any CRS Report may be reproduced and distributed in its entirety without permission from CRS. However, as a CRS Report may include copyrighted images or material from a third party, you may need to obtain the permission of the copyright holder if you wish to copy or otherwise use copyrighted material.
74 NAPA, Elevating Human Capital, p. 2. 75 Jessie Bur, “ Congressionally Mandated Report Envisions a More Powerful OPM,” Federal Times, March 17, 2021, https://www.federaltimes.com/management/2021/03/17/congressionally-mandated-report-envisions-a-more-powerful-opm/. 76 P.L. 116-92, §1112(c).
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13 with each goal. These are the three primary goals identified for FY2026-FY2030:
Goal 1: Attract and Retain Top Talent33
Goal 2: Deliver High-Quality, Efficient Service34
Goal 3: Lead America's AI-Ready Workforce35
GPRA also requires agencies to publish agency performance plans annually to, among other things, assess each agency's progress toward achieving the performance goals that it outlined in its strategic plan. At the time of this report's publication, OPM has not published an agency performance plan associated with the FY2026-F2030 strategic plan.36
The Role of OPM in Federal Workforce Management
Federal workforce management functions are distributed across a spectrum of centralized and decentralized activities. Some functions are administered more centrally by OPM, while others are delegated to, or administered directly by, individual executive branch agencies. The degree of OPM involvement varies from establishing government-wide requirements and exercising direct oversight to providing guidance and allowing agencies substantial discretion in implementation. These different approaches may involve trade-offs between promoting consistency and uniformity on the one hand and providing agencies with greater flexibility to tailor workforce policies and practice to their needs on the other.
Competitive Service Hiring
Competitive service hiring provides an example of a workforce management function in which OPM establishes a government-wide framework and affords agencies substantial discretion in implementation.37 OPM establishes the standards and procedures governing the competitive hiring process, while agencies generally determine when to use these standards and procedures to fill positions, which positions to fill, and which permissible assessment tools to use to evaluate candidates in practice. This gives agencies flexibility to use the process established by OPM in ways that reflect their individual missions, organizational structures, budgets, and personnel needs. This discretion may enable agencies to respond to changing staffing needs while maintaining their commitment to merit-based hiring principles.
Employee Performance
Employee performance assessment illustrates a somewhat different allocation of responsibilities between OPM and individual agencies. OPM establishes regulations and standards for performance management, including the basic framework for how federal employes are to be assessed.38 Agencies are required to assess the performance of their personnel within this framework, but they have substantial responsibility for designing and administering their own performance appraisal systems, including establishing performance expectations that reflect their missions, their organizational structures, and the duties of particular positions. OPM reviews and approves the systems that agencies design and evaluates their implementation on a biennial basis.
This division of responsibility may allow OPM the oversight capability to help promote consistency, accountability, and fairness in federal employee performance management while creating enough flexibility to allow agencies to design performance appraisal systems that account for differences in their missions and workforce compositions. However, OPM ultimately has the final say on whether an agency's performance appraisal system meets the requirements established by law, regulation, and OPM policy.
Reductions in Force
Reduction in force (RIF) procedures provide an example of a workforce management function in which OPM exercises a comparatively high degree of centralized authority and agencies have less discretion in implementation.39 Agencies retain the authority to determine whether a RIF is necessary and when it will occur; however, once an agency decides to conduct a RIF, it must follow the detailed requirements established in statute and implemented through OPM regulation, including rules governing competitive areas, retention standing, employee notification, and appeals. This relatively prescriptive framework may reflect the importance of fairness and impartiality in administering RIFs. The rigidity of this process may help prioritize uniformity and consistency while still allowing agencies limited flexibility to decide when to use the process in response to the conditions that may give rise to a RIF.
Issues for Congressional Oversight
For congressional oversight purposes, several issues related to OPM's varied responsibilities and capacity as an agency may warrant consideration. Recent federal workforce reforms, including changes to hiring and workforce downsizing, may increase demands on OPM as it develops government-wide policies, provides guidance, and oversees implementation of those policies and guidance. At the same time, reductions in OPM's staffing levels could raise questions about the agency's capacity to perform its responsibilities effectively. More broadly, Congress may wish to consider how the appropriate balance between centralized OPM oversight and agency-level discretion could change as federal workforce management priorities and needs evolve.
OPM's Role in Recent Federal Workforce Policy Reforms
The second Trump Administration has made significant changes to several aspects of federal workforce management policy, including hiring, workforce downsizing, and federal employee appeals. These changes may have increased OPM's administrative and oversight burden, which might raise questions regarding OPM's capacity to effectively carry out its responsibilities.
- On January 20, 2025, President Trump issued Executive Order (EO) 14170, "Reforming the Federal Hiring Process and Restoring Merit to Government Service."40 This EO directed the Assistant to the President for Domestic Policy—in collaboration with the OPM director, the Office of Management and Budget director, and the administrator of the Department of Government Efficiency—to develop a federal hiring plan to send to agency heads across the federal government.
- On May 29, 2025, Vince Haley, Assistant to the President for Domestic Policy, and Charles Ezell, then-Acting Director of OPM, issued a memorandum titled "Merit Hiring Plan," which outlines changes to the federal hiring process that implement the requirements of EO 14170.41 These changes include reforming the recruitment process, implementing skills-based hiring, revising the application process, and reducing time to hire.
- On October 15, 2025, President Trump issued EO 14356, "Ensuring Continued Accountability in Federal Hiring," outlining further instructions for implementing the Merit Hiring Plan and additional agency requirements.42 The Merit Hiring Plan requires each agency to provide a report to update OPM on its progress implementing the plan. EO 14356 newly requires each agency to prepare an annual staffing plan as well as quarterly updates that are submitted to OPM for review.
These policy developments may expand OPM's oversight and administrative workload. In addition to developing and implementing government-wide plans and guidance, OPM must receive and review agency reports, potentially increasing demands on OPM's capacity to monitor agency compliance and progress.
In addition, the Trump Administration has pursued downsizing the federal workforce through means such as RIFs, the deferred resignation program (DRP), and Voluntary Early Retirement Authority (VERA).43 OPM has a role in each of these workforce downsizing mechanisms.
- In the case of RIFs, OPM is responsible for providing guidance to agencies on RIF procedures, receiving and approving agency requests to shorten RIF notice periods, and assessing employee appeals.44
- The DRP was a new program established by the Trump Administration via OPM in January 2025.45 The DRP offered executive branch employees the choice to be placed on administrative leave and retain their pay and benefits until September 30, 2025, when they would be officially separated from federal employment. Approximately 140,000 employees participated in the DRP in 2025.46
- OPM authorized agencies to offer VERA, which allows agencies to offer voluntary early retirement to certain employees in situations of restructuring or downsizing, in tandem with the DRP.
The use of these programs increased the administrative burden on OPM regarding processing separations and retirements, which resulted in a backlog of retirement claims and delayed payments for former federal employees.47
The transfer of the responsibility to hear appeals from certain personnel actions represents another expansion of the agency's responsibilities that could increase demands on its administrative capacity.
Effective September 2, 2026, OPM assumed responsibility for adjudicating certain RIF, suitability, and probationary and trial-period appeals that had previously been handled by the Merit Systems Protection Board.48
In addition to developing the applicable rules and procedures for employee appeals, OPM must now receive, review, and adjudicate individual appeals, potentially creating a new and ongoing workload for staff that could be burdensome. OPM, however, argues that this change will streamline the process.
Given these recent developments in the federal workforce management policy arena, Congress may wish to consider whether OPM has sufficient capacity to effectively carry out its responsibilities.
OPM Staffing and Budget Changes
OPM's salaries and expenses budget declined from $219,076,000 in FY2025 to $167,535,000 in FY2026, and the President's budget requested $145,973,000 for FY2027 (see "OPM's Operating Budget"). In addition, OPM's staff has decreased by 1,059 employees since January 20, 2025.49 These changes may have implications for OPM's ability to carry out its responsibilities at a time when the agency's workload may also be expanding (see "OPM's Role in Recent Federal Workforce Policy Reforms"). Reductions in budgetary resources in OPM's Salaries and Expenses account and recent workforce reforms that have resulted in new roles for OPM may raise questions for Congress about OPM's capacity to provide effective government-wide oversight, process increased amounts of agency information in the form of new reports, and implement new workforce policies while continuing to perform its existing statutory functions.
Centralizing Versus Delegating Federal Workforce Management Responsibilities
Workforce management responsibilities are allocated among OPM and individual agencies to varying degrees (see "The Role of OPM in Federal Workforce Management"). The way in which these responsibilities are allocated may raise questions about the appropriate balance between centralized oversight within OPM and agency discretion and flexibility. Increased centralization within OPM may promote consistency, uniformity, and government-wide accountability, while delegation may allow agencies to respond more readily to differences in mission, workforce composition, and operational needs. At the same time, greater centralization may increase demands on OPM's resources and capacity, while greater delegation may result in less uniformity across agencies. In considering the future approach to federal workforce management, Congress may wish to assess which functions are best suited to centralized administration by OPM, which may be more effectively delegated to agencies, and how the appropriate balance may vary as circumstances change.
Footnotes
| 1.
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P.L. 47-16, Civil Service Act of 1883, January 16, 1883 (22 Stat. 403). This law's historical context is discussed in CRS Report RL30795, General Management Laws: A Compendium, by Clinton T. Brass et al. (available to congressional clients on request), in the section titled "Title 5, Part III—Employees," by Barbara Schwemle, p. 265.
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| 2.
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OPM, Annual Performance Report: Fiscal Year 2020, January 2021, https://web.archive.org/web/20220122121811/https://www.opm.gov/about-us/budget-performance/performance/2020-annual-performance-report.pdf.
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| 3.
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OPM, Annual Performance Report: Fiscal Year 2020.
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| 4.
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See CRS Report RL30795, General Management Laws: A Compendium, by Clinton T. Brass et al. (available to congressional clients on request), in the section titled "Title 5, Part II—Civil Service Functions and Responsibilities," by Barbara Schwemle, p. 248.
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| 5.
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See CRS Report RL30795, General Management Laws: A Compendium, by Clinton T. Brass et al. (available to congressional clients on request), p. 245. See also Reorganization Plan No. 2 of 1978, May 23, 1978 (92 Stat. 3783).
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| 6.
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See CRS Report RL30795, General Management Laws: A Compendium, by Clinton T. Brass et al. (available to congressional clients on request), p. 248.
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See CRS Report RL30795, General Management Laws: A Compendium, by Clinton T. Brass et al. (available to congressional clients on request), p. 248.
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5 U.S.C. §1103(a).
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5 U.S.C. §1103(a).
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| 10.
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5 U.S.C. §1103(a).
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OPM, "Organizational Framework," https://www.opm.gov/about-us/reports-publications/agency-plans/fy-2024-congressional-budget-justification/organizational-framework/.
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| 12.
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OPM, "Chief Human Capital Officers (CHCO) Council," https://www.opm.gov/chcoc/.
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5 U.S.C. §1401 note.
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| 14.
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OPM, Strategic Plan: Fiscal Years 2026-2030, March 2026, p. 4, https://www.opm.gov/about-us/reports-publications/opm-fy-2026-2030-strategic-plan-1.pdf.
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15.
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OPM, "About Us: Our Work," https://www.opm.gov/about-us/our-work/.
16.
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OPM, "About Us: Our Work," https://www.opm.gov/about-us/our-work/.
| 17.
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Executive Order 13467 of June 30, 2008, "Reforming Processes Related to Suitability for Government Employment, Fitness for Contractor Employees, and Eligibility for Access to Classified National Security Information," 73 Federal Register 38103, July 2, 2008, https://www.federalregister.gov/documents/2008/07/02/08-1409/reforming-processes-related-to-suitability-for-government-employment-fitness-for-contractor.
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18.
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OPM, "About Us: Our Work," https://www.opm.gov/about-us/our-work/.
| 19.
|
OPM, Congressional Budget Justification: Fiscal Year 2027, April 2026, p. 21, https://www.opm.gov/about-us/cbj-2026-pdfs/opm-fy-2027-congressional-budget-justification.pdf.
|
| 20.
|
OPM's annual congressional budget justification provides detailed budget information about OPM's administrative activities. See OPM, Congressional Budget Justification: Fiscal Year 2027, April 2026, https://www.opm.gov/about-us/cbj-2026-pdfs/opm-fy-2027-congressional-budget-justification.pdf.
|
| 21.
|
OPM manages several mandatory spending programs that amount to tens of billions of dollars per year, including federal employee retirement systems, health insurance, and life insurance. This CRS Report focuses on OPM's administrative budget rather than the mandatory spending programs, which finance "the Retirement Program for Federal civilian employees and provide retirement benefits for 2.8 million retirees and survivors; finance the health insurance for an estimated 8.2 million employees, retirees, and eligible family members; and provide life insurance coverage for 4.6 million employees and retirees." OPM, Congressional Budget Justification: Fiscal Year 2027, p. 49. For more information about the cost of the mandatory spending programs, see OPM, Agency Financial Report: Fiscal Year 2025, December 2025, https://www.opm.gov/about-us/reports-publications/agency-archive/2025-agency-financial-report.pdf.
|
| 22.
|
For reference to the operating budget, see OPM, Congressional Budget Justification: Fiscal Year 2027, p. 7.
|
| 23.
|
Office of Management and Budget (OMB), Budget of the U.S. Government: Appendix, FY2027, p. 1129, https://www.govinfo.gov/content/pkg/BUDGET-2027-APP/pdf/BUDGET-2027-APP.pdf. See also OPM, Congressional Budget Justification: Fiscal Year 2027, https://www.opm.gov/about-us/cbj-2026-pdfs/opm-fy-2027-congressional-budget-justification.pdf.
|
| 24.
|
OMB, Budget of the U.S. Government: Appendix, FY2027, pp. 1129-1130.
|
| 25.
|
OMB, Budget of the U.S. Government: Appendix, FY2027, p. 1131.
|
| 26.
|
OPM, Congressional Budget Justification: Fiscal Year 2027, p. 8, https://www.opm.gov/about-us/cbj-2026-pdfs/opm-fy-2027-congressional-budget-justification.pdf.
|
| 27.
|
OPM, Congressional Budget Justification: Fiscal Year 2027, p. 9.
|
| 28.
|
OPM, Congressional Budget Justification: Fiscal Year 2027, p. 9.
|
| 29.
|
OPM, Congressional Budget Justification: Fiscal Year 2027, p. 10.
|
| 30.
|
For a discussion, see CRS Report R42379, Changes to the Government Performance and Results Act (GPRA): Overview of the New Framework of Products and Processes, by Clinton T. Brass.
|
| 31.
|
OPM, "About Us: Reports & Publications," https://www.opm.gov/about-us/reports-publications/.
|
| 32.
|
OPM, Strategic Plan: Fiscal Years 2026-2030, March 2026, p. 6, https://www.opm.gov/about-us/reports-publications/opm-fy-2026-2030-strategic-plan-1.pdf.
|
| 33.
|
OPM, Strategic Plan: Fiscal Years 2026-2030, p. 7.
|
| 34.
|
OPM, Strategic Plan: Fiscal Years 2026-2030, p. 8.
|
| 35.
|
OPM, Strategic Plan: Fiscal Years 2026-2030, p. 9. AI = artificial intelligence.
|
| 36.
|
The most recent OPM annual agency performance plan was included in the FY2025 congressional budget justification. See OPM, Congressional Budget Justification and Annual Performance Plan: FY2025, March 2024, https://www.opm.gov/about-us/fy-2025-congressional-budget-justification-and-annual-performance-plan/fy-2025-congressional-budget-justification-and-annual-performance-plan.pdf.
|
| 37.
|
For further information on the competitive hiring process for civil service positions, see CRS Report R48750, Federal Hiring Process for Positions in the Competitive Civil Service: Overview and Recent Reforms, by Taylor N. Riccard and Barbara L. Schwemle.
|
| 38.
|
5 U.S.C. §4302; 5 C.F.R. Part 430.
|
| 39.
|
For more information, see CRS In Focus IF12908, Reductions in Force (RIFs): An Overview, by Taylor N. Riccard.
|
| 40.
|
Executive Order 14170 of January 20, 2025, "Reforming the Federal Hiring Process and Restoring Merit to Government Service," 90 Federal Register 8621, January 30, 2025, https://www.federalregister.gov/documents/2025/01/30/2025-02094/reforming-the-federal-hiring-process-and-restoring-merit-to-government-service.
|
| 41.
|
Memorandum from Vince Haley, Assistant to the President for Domestic Policy, and Charles Ezell, Acting Director, OPM, to heads and acting heads of departments and agencies, "Merit Hiring Plan," May 29, 2025, https://www.chcoc.gov/content/merit-hiring-plan.
|
| 42.
|
Executive Order 14356 of October 15, 2025, "Ensuring Continued Accountability in Federal Hiring," 90 Federal Register 48387, October 20, 2025, https://www.federalregister.gov/documents/2025/10/20/2025-19614/ensuring-continued-accountability-in-federal-hiring.
|
| 43.
|
CRS Insight IN12505, Federal Workforce Downsizing: Voluntary and Involuntary Mechanisms, by Taylor N. Riccard.
|
| 44.
|
For more information on the RIF process, see CRS In Focus IF12908, Reductions in Force (RIFs): An Overview, by Taylor N. Riccard.
|
| 45.
|
For more information, see CRS Legal Sidebar LSB11277, Deferred Resignation or "Fork in the Road": Selected Relevant Legal Challenges and Considerations for Congress, by Jimmy Balser and Jon O. Shimabukuro.
|
| 46.
|
OPM, "Workforce Changes," October 7, 2026, https://data.opm.gov/explore-data/analytics/workforce-changes.
|
47.
|
For more information on federal retirement processing, see CRS Insight IN12738, Federal Retirement Processing: Background and Recent Developments, by Katelin P. Isaacs and Tamar B. Breslauer. Also see Drew Friedman, "House Democrats Question OPM on Retirement Processing Delays," Federal News Network, December 22, 2025, https://federalnewsnetwork.com/congress/2025/12/house-democrats-question-opm-on-retirement-processing-delays/.
| 48.
|
OPM, "Streamlining Probationary and Trial Period Appeals," 91 Federal Register 49072, August 3, 2026, https://www.federalregister.gov/documents/2026/08/03/2026-15654/streamlining-probationary-and-trial-period-appeals, and OPM, "Reduction in Force Appeals," 91 Federal Register 49230, August 3, 2026, https://www.federalregister.gov/documents/2026/08/03/2026-15666/reduction-in-force-appeals.
|
| 49.
|
OPM, "Workforce Changes."
|