The Technology Modernization Fund Should Be Reauthorized
Improving and modernizing federal information technology (IT) systems is an essential need across the federal government, with aging and obsolete systems at risk of becoming unserviceable and unusable. With more than $100 billion spent annually on IT in the federal government, Citizens Against Government Waste (CAGW) has urged federal agencies to modernize their IT systems and included this recommendation in Critical Waste Issues for the 119th Congress.
During the 115th Congress, the Technology Modernization Fund (TMF) was established in Public Law No. 115-91, the National Defense Authorization Act for Fiscal Year 2018, under Subtitle G, the Modernizing Government Technology (MGT) Act of 2017. The purpose of this fund is to encourage federal agencies to modernize their IT systems and address urgent IT needs. The funds are awarded with the intention that agencies will pay back the funds. However, a January 12, 2022, Government Accountability Office (GAO) blog post found that agencies often struggle to repay the full amount of the funding they received. GAO recommended that the Office of Management and Budget and the General Services Administration to “develop a plan to fully recover operating costs and clarify that agencies should follow required cost estimating guidance.”
A March 16, 2026, Government Executive article revealed that the program’s funding, which was temporarily reauthorized by Congress through September 30, 2026, has helped make measurable differences by addressing urgent cybersecurity needs, modernizing mission-critical systems, improving digital services, and building shared platforms that multiply the value of a single investment across multiple agencies.
A July 23, 2026, GAO report found that “as of June 2025 (the latest data available at the time of this analysis), 24 TMF projects expected to achieve total savings of about $1.06 billion. Eleven of these projects had collectively realized savings of about $13.5 million, and 13 had not yet begun to achieve savings.”
In the 119th Congress, H.R. 2985, the Modernizing Government Technology Reform Act, was introduced to reauthorize the TMF through 2032. The bill also improves the evaluation of legacy IT systems that need to be replaced and makes agencies more accountable for repayment of the funds. On February 4, 2026, H.R. 2895 was ordered to be reported to the House by a vote of 42-0 by the House Committee on Oversight and Government Reform.
Reauthorizing and strengthening the TMF will help federal agencies replace their legacy IT systems, strengthen existing systems against cyberthreats, improve efficiency, and save money for taxpayers. The House should pass this legislation and send it to the Senate.
