Key Takeaways
- •Scott Cooper (Director, Office of Personnel Management) confirmed the federal government lost 300,000 employees recently, noting that 90% of these departures were voluntary resignations or early retirements.
- •Cooper prioritized consolidating 120 disparate human capital systems into a single platform and transitioning the federal retirement process from a 50-year-old paper system to digital applications.
- •Rep. Hoyer (D, MD-5) pressed Cooper on the decision to cancel the Federal Employee Viewpoint Survey and expressed concern over consolidating employee appeal processes within OPM.
- •Rep. Edwards (R, NC-11) applauded the 30% reduction in OPM’s workforce, while Rep. DeLauro (D, CT-3) characterized the administration’s personnel policies as an illegal and immoral abuse of power.
- •OPM aims to transition all federal agencies to a centralized HR system within 18 months and reduce retirement application processing times to 15 days by fiscal year-end.
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Hearing Analysis
Overview
This hearing examined the operations and strategic direction of the federal government’s central human resources agency, focusing on efforts to modernize legacy systems and manage a significantly reduced workforce. The discussion centered on the tension between the administration’s drive for "government efficiency"—characterized by a reduction of 300,000 federal employees—and the resulting "trauma" and service disruptions described by critics. Key topics included the transition from paper-based retirement processing to digital systems, the consolidation of disparate human capital software, and the controversial reclassification of career civil servants into policy-focused roles.
Key Testimony & Policy
Director Scott Cooper, who took over the agency in July 2025, outlined three primary objectives: placing the right employees in the right roles, modernizing the federal workforce ecosystem, and fostering a high-performance culture. A cornerstone of this strategy is the "Federal HR 2.0" proposal (also referred to as Core HCM), which seeks to consolidate over 120 disparate human capital management systems into a single centralized platform. Director Cooper testified that OPM intends to transition all agencies to this new system within 18 months, utilizing a 10-year fixed-price contract to reduce the billions currently spent on redundant IT infrastructure.
The hearing also highlighted the "TechForce" initiative, a public-private partnership aimed at recruiting 1,000 early-career technologists over two years to address a critical demographic imbalance where only 7% of the federal workforce is under age 30. Regarding retirement services, Director Cooper reported that the new online retirement application has already processed 130,000 annuitants, reducing processing times from over 90 days to approximately 30-40 days, with a goal of reaching 15 days by the end of the fiscal year. Additionally, OPM is implementing a "Schedule Policy Career" rule (formerly known as Schedule F) to reclassify approximately 50,000 nonpartisan employees into roles that allow for easier removal, a move the administration argues increases accountability but critics claim facilitates political purges.
Notable Exchanges & Partisan Dynamics
Ranking Member Steny Hoyer (D, MD-5) and Rep. Rosa DeLauro (D, CT-3) sharply criticized the administration’s "crusade" against federal workers, citing remarks by OMB Director Russell Vought about "traumatizing" bureaucrats. They argued that the loss of 300,000 employees and the influence of the Department of Government Efficiency (DOGE) created "irrational chaos" and undermined the merit-based civil service. Rep. Glenn Ivey (D, MD-4) specifically questioned the "mass firing" of 25,000 probationary employees without individual performance reviews, suggesting it deterred top talent from entering government service.
Conversely, Republican members focused on efficiency and fiscal responsibility. Rep. Ashley Hinson (R, IA-2) praised the 90% return-to-office rate for federal employees, contrasting it with low occupancy rates during the previous administration. Rep. Chuck Edwards (R, NC-11) applauded the reduction in the federal workforce, noting the necessity of cuts given the $39 trillion national debt. A significant portion of the hearing was dedicated to the ongoing Department of Homeland Security (DHS) shutdown. Rep. Nick LaLota (R, NY-1) and Rep. Edwards highlighted the plight of Transportation Security Administration (TSA) agents and Coast Guard members working without pay, with Rep. LaLota blaming Senate Democrats for using federal workers as "leverage" in funding negotiations.
Organizations Mentioned
- Office of Personnel Management (OPM): As the central HR agency, OPM was the primary subject of the hearing, specifically regarding its modernization of retirement systems and its role in implementing the "Schedule Policy Career" rule. - Department of Government Efficiency (DOGE): Discussed extensively as the driver behind workforce reductions and "efficiency" mandates, though Director Cooper noted he had little direct overlap with its leadership. - Transportation Security Administration (TSA): Mentioned frequently in the context of the DHS shutdown, with members highlighting that agents making $35,000-$45,000 were missing paychecks. - Merit Systems Protection Board (MSPB): OPM is proposing to consolidate certain RIF and suitability appeals into its own jurisdiction, a move Ranking Member Hoyer argued could undermine the board’s independent oversight. - General Services Administration (GSA): Cited regarding the consolidation of federal office space and the management of occupancy rates as employees return to in-person work. - United States Digital Service (USDS): Identified as the hiring authority for many DOGE-affiliated individuals who transitioned from the private sector into government roles. - Department of Justice (DOJ): Mentioned regarding the Federal Observer Program and the legal challenges surrounding the termination of federal employees.
What's Next
Director Cooper set a deadline of September 2027 for all federal agencies to transition onto the new centralized HR system. OPM also aims to reduce retirement application processing times to 15 days by the end of the current fiscal year. Members of the subcommittee requested a full accounting of DOGE-affiliated employees and their hiring authorities by the April 15 budget markup. Furthermore, the implementation of the "Schedule Policy Career" rule awaits an executive order from the White House to finalize the list of positions slated for conversion.
Transcript
Subcommittee on Financial Services and General Government will come to order. This hearing is titled the Oversight of the Office of Personnel Management. Members will have five legislative days within which to revise and extend their remarks and insert extraneous material into the record. I now recognize myself for an opening statement. The Office of Personnel Management, or OPM, plays a central role in the most human resource decisions within the executive branch. This is particularly true as it relates to the federal workforce. In 1979, Congress passed the Civil Service Reform Act, which disbanded the United States Civil Service Commission and reassigned most of its functions to three newly established agencies, including OPM. Over the last year, OPM has played a central role in implementing this administration's workforce modernization initiatives. In addition, OPM has played a key role in using technology to revolutionize the way federal employees interact with federal government. I have no doubt that many of the colleagues will have questions about policies implemented by OPM and how those decisions have been impacted their constituents. I look forward to discussing OPM's work over the last year and their expectations for FY 2027. I now recognize Ranking Member Hoyer for any opening statement he may have.
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