New Government Efficiency Department Aims to Slash IT Spending by 80% at OPM

The Office of Personnel Management (~2500 employees) budgeted $370M for IT spending in FY2025. They believe this value can be reduced by ~80% while maintaining equivalent levels of service. Initial reductions include:
-$1.9M for studies on quantum cryptography and quantum
The Office of Personnel Management (OPM), which employs approximately 2,500 staff members, has set an ambitious budget of $370 million for information technology (IT) spending in fiscal year 2025. However, the agency is exploring significant cost reductions, aiming to slash its IT expenditures by nearly 80% without compromising service quality. This potential reduction indicates a strategic move towards optimizing resource allocation within the federal agency.
Initial cuts include a $1.9 million reduction earmarked for research on quantum cryptography and quantum computing technologies. This decision reflects a growing trend among government agencies to reassess their IT investments in light of evolving technological needs and budget pressures. OPM’s efforts may set a precedent for other federal entities looking to streamline operations while maintaining essential services to the public. As the agency moves forward with these changes, it will be crucial to monitor the impact on both efficiency and service delivery.
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