Pursuant to Title 5, U.S.C. §1304 (e) (1), OPM is authorized to use Revolving Funds without fiscal year limitations to conduct background investigations, training, and other personnel management services that OPM is authorized or required to perform on a reimbursable basis. Revolving funds are intended to finance cyclical, business-like operations. The activity financed by a revolving fund collects receipts from Federal agencies and uses those receipts to finance the fund's ongoing operations. Under this guidance, OPM operates several programs, which are funded by fees or reimbursement payments collected from other agencies and other payments.

The following programs are authorized to use Revolving Funds:

• Suitability Executive Agent
• Human Resources Solutions; and
• Human Resources Solutions Information Technology Program Management Office

The following table discusses the business lines followed by a description of the activities supported by OPM’s Revolving Fund, which is aligned with OPM’s statutory authority.

Credit Monitoring and Identity Protection Services

Following the 2015 cybersecurity incidents, OPM established the Credit Monitoring and Identity Protection Services (CM&IPS) Program to provide credit monitoring and identity protection to affected individuals. OPM began offering services on July 1, 2015. The program is administered by Identity Theft Guard Solutions, Inc. (IDX) under a task order awarded in December 2023 through GSA’s Identity Protection Services schedule, with a period of performance ending September 30, 2026.

The program concludes in September 2026 and will not require budget authority in FY 2027.

Suitability Executive Agent Programs

The Suitability Executive Agent (SuitEA) serves as the focal point within OPM for supporting the Director’s responsibilities as the Suitability and Credentialing Executive Agent (EO 13467), driving government-wide process improvement and modernization in personnel vetting. SuitEA leads OPM’s execution, administration, and enforcement of suitability standards and investigations (5 U.S.C. §3301, 1103, 7301, and 1104).

SuitEA issues guidance and instruction to agencies to promote uniformity, centralization, efficiency, effectiveness, reciprocity, timeliness, and security in suitability, fitness, and credentialing processes. It delivers government-wide training and oversight to suitability and fitness adjudicators; prescribes suitability, fitness, and credentialing standards and procedures; and oversees functions delegated to agencies. SuitEA also supports an adjudicative operations office tasked with conducting suitability investigations and taking government-wide suitability actions, debarring unsuitable individuals from Federal service, removing them from their position or preventing them from on-boarding, when appropriate, to promote efficiency and protect the integrity of Federal agencies.

SuitEA will create dedicated workstreams for its adjudicative operations, having specific teams focus on certain areas of the adjudication process, will improve timeliness, quality, cost, and efficiency. Additionally, SuitEA will redirect current staff to support adjudicative operations. Repurposing staff into more mission-priority roles will position SuitEA to meet increased demand for suitability actions anticipated from executing the March 20, 2025, Presidential Memorandum (PM) on strengthening suitability, while also allowing for more comprehensive outreach to stakeholders on guidance and oversight of suitability adjudications.

Throughout FY 2026, personnel vetting rule updates will guide new requirements and services and drive FY 2027 goals accordingly. SuitEA will remain agile to meet the objectives and targets to include a potential higher volume of suitability actions and increasing training offerings to support agencies’ implementation of new processes. SuitEA is updating its pricing model for the services it provides to its Federal customers. Starting in FY 2027, the cost allocation model will be updated to align its newly provided services with the corresponding use and proportion of each agency.

In FY 2027, SuitEA will support federal investigative service providers in planning and implementation of investigative standards and processes that streamline vetting processes, reduce duplication, eliminate waste, and provide improved risk-management.

Human Resources Solutions

Human Resources Solutions (HRS) operates within OPM’s Revolving Fund and provides government-wide human capital products, services, and human resources information technology (HRIT) support to Federal agencies through reimbursable agreements. Agencies pay for services through customer transactions, orders, fixed fees, or proportional contributions to cost.

HRS sets rates to recover the full cost of operations, including both direct and indirect costs such as technology systems, staffing, rent, and utilities. HRS monitors demand and adjusts pricing as workload and market conditions change while managing carryover to ensure continuity of operations. From FY 2027 through FY 2029, HRS expects revenue to exceed expenses by no more than 3 percent.

Financial Management and Retained Earnings

HRS maintains retained earnings to manage revenue volatility, potential government shutdowns, unexpected requirements, and program liquidation risks without seeking supplemental appropriations. HRS’s retained earnings tolerance level is approximately 30 percent of annual operating revenues, based on assumptions related to ongoing operations and potential liquidation costs.

Between FY 2025 and FY 2026, HRS reduced staffing from 685 to 300 and cut obligations by $278 million, drawing down approximately $40 million in retained earnings. The effects of these reductions extend into at least FY 2026.

Estimated carryover, including balances from prior fiscal years, is shown below:

HRS continuously monitors costs and aligns spending with customer requirements and efficiency opportunities while maintaining cost savings for the Federal Government and the American taxpayer. As the Core HCM system is implemented government-wide, HRS will restructure pricing to reflect efficiencies gained through consolidation of systems and services.

Anticipated Opportunities and Presidential Directives

HRS anticipates new opportunities to expand value for OPM and Federal agencies in upcoming fiscal years. A primary focus is supporting implementation of the Core Human Capital Management system as part of Federal HR 2.0.

HRS will also support agencies in implementing the following Presidential directives:

1. The Chance to Compete Act of 2024
2. Reforming the Federal Hiring Process and Restoring Merit to Government Service (January 2025)
3. Implementing the Department of Government Efficiency Workforce Optimization (February 2025)
4. Commencing the Reduction of the Federal Bureaucracy (February 2025)

In addition, HRS aligns with OPM’s strategic goals to attract and retain top talent; deliver high-quality, efficient service; and lead America’s AI-ready workforce. As HRS continues to operationalize Administration priorities and advance OPM’s mission, its impact will expand by achieving government-wide economies of scale, driving long-term sustainability, operational efficiency, and cost savings across Federal human capital functions.

Anticipated Interagency Agreements

From FY 2027 through FY 2029, HRS will serve existing customers and support new interagency agreements to provide human capital services and systems. Services will include classification, assessments, hiring, position management, employee development, and talent management systems supporting workforce restructuring, talent acquisition, and performance management.

HRS systems include:

• USAJOBS – the Federal government’s official career portal, connecting job seekers with Federal opportunities across the U.S. and worldwide. Its primary purpose is to provide Federal agencies with a centralized, secure platform to recruit and retain a world-class government workforce.

• USA Staffing – a talent acquisition system to, assess, certify, select, and onboard qualified candidates. USA Staffing includes real-time reporting on key hiring metrics and interconnections with agency HRIT systems including request processing, new hire, and data self-service.
• USA Hire – a platform designed to provide valid, reliable, and fair online assessment solutions to help agencies identify top talent.
• USA Performance –a software solution for performance management streamlines the entire performance and appraisal process for Senior Executives, Senior Professionals, and non-SES/SP performance programs, making it easier to track, review, and manage performance throughout the full rating cycle.
• Electronic Official Personnel Folder (eOPF) – facilitates the electronic filing of SF-50 data covering a civilian Federal employee’s employment history and automates employee notification of actions through email alerts.
• Enterprise Human Resources Integration (EHRI) - centralized Federal workforce data to support human capital management across government. OPM collects workforce, payroll, and training data from agencies, prepares the data for analysis, and provides access to the data through the Federal Workforce Data site.

These agreements are designed to deliver near-term and long-term human capital outcomes, expand economies of scale, and accelerate mission delivery.

Federal HR 2.0 and Core HCM

HRS leads the Federal HR 2.0 initiative, with a major FY 2027 milestone focused on implementation of the Core HCM system. HRS will procure and centrally manage a modern HRIT suite to replace more than 100 outdated and duplicative systems across the Federal Government. The system will support personnel action processing, employee records, employee and manager self-service, analytics and dashboards, time and attendance, and learning modules.

Once implemented, Core HCM will streamline HR operations, improve transparency through near real-time data, reduce friction in policy implementation, strengthen government-wide data management, improve employee experience, and generate savings on a government-wide basis. HRS’s FY 2027 budget anticipates $264 million in revenue and implementation costs related to Core HCM.

Enterprise Human Resource Integration HRI and HR Line of Business

In FY 2027, HRS will continue advancing Federal human capital modernization through two critical functions: Enterprise Human Resource Integration (EHRI) and HR Line of Business (HRLoB). EHRI serves as the government-wide platform for workforce data integration, analytics, and reporting, enabling agencies to meet statutory requirements and improve decision-making. Transitioning from legacy systems to Core HCM, EHRI will strengthen data quality and transparency through enhanced analytics and integration with talent management tools such as USA Staffing and USA Performance.

HRLoB provides the standards and frameworks that ensure interoperability and consistency across all Federal shared services platforms. By maintaining the Human Capital Information Model (HCIM) and delivering implementation guidance, HRLoB supports agencies in adopting modern, standardized HR processes. Together, these functions drive efficiency, compliance, and innovation in Federal human resources, aligning with HRS’s mission to deliver secure, data-driven solutions for the workforce of the future.

Revolving Fund Stewardship

HRS operates in a Federal entrepreneurial environment and manages its Revolving Fund to remain results-oriented and market-based. Customer demand, high satisfaction, and repeat business reflect HRS’s ability to deliver high-quality human capital solutions on time and within budget. The Revolving Fund model enables OPM to avoid duplication, achieve economies of scale, and ensure government-wide outlays net to zero while maintaining sufficient retained earnings to hold the fund harmless in the event of liquidation without requiring supplemental appropriations.

In FY 2027, the Human Resources Quality Service Management Office (HR QSMO) will advance government-wide human capital service delivery by strengthening the Federal HR services marketplace, improving service quality, and supporting adoption of modern, interoperable HR solutions. HR QSMO establishes standards and performance expectations for HR service providers and supports agencies in identifying and implementing solutions that improve hiring assessments and workforce analytics.

Human Resources Solutions Information Technology Program Management Office

The Human Resources Solutions Information Technology Program Management Office (PMO) offers information technology services government-wide in the Healthcare and Insurance, Retirement Services, Workforce Policy and Innovation and Merit System Accountability and Compliance fields.

The PMO delivers innovative, high-quality information technology products and services that enhance organizational effectiveness and boosts productivity. It has three lines of business (LOBs): Benefits Engineering, Talent Engineering, and Data & Artificial Intelligence Engineering. These lines of business include information technology systems that support Federal policy and compliance for the entire human resources journey, from initial employee hiring to retirement, including healthcare and insurance.

In FY 2025, the PMO focused on maintaining and sustaining various existing systems, including OPM's Talent Acquisition System, USA Staffing; OPM's Federal Government job board, USAJOBS; OPM’s Performance system, USA Performance; the USA Data Platform, Enterprise Human Resources Integration; eOPF; and numerous other web-based applications used by multiple Federal agencies across government. In FY 2026, several new priorities and system upgrades are planned. Notably, the PMO will complete its migration to the cloud for appropriate systems by the end of FY 2025, enabling these systems to leverage the efficiency and security of the cloud in FY 2026.

For FY 2027 the PMO will maintain focus to deliver solutions support and development for existing USA Suite efforts, and new efforts such as Core HCM, to help with managing data, enabling real-time eligibility verification, and sustaining compliant, secure data pipelines. The PMO will help modernize both talent and retirement applications and integrations, improve performance and resilience, scale cloud-based data platforms for real-time insights and decision support, and advance cybersecurity support through automated compliance and continuous monitoring.