Citation[]
Modernizing Government Technology Act (Dec. 12, 2017), as an amendment to the 2018 National Defense Authorization Act.
Overview[]
To help further agencies’ efforts to modernize IT, in December 2017, Congress and the President enacted a law to authorize the availability of funding mechanisms to improve, retire, or replace existing IT systems to enhance cybersecurity and to improve efficiency and effectiveness. The law authorizes agencies to establish working capital funds for use in transitioning from legacy systems, as well as for addressing evolving threats to information security.16 The law also created the Technology Modernization Fund, within the Department of the Treasury, from which agencies can "borrow" money to retire and replace legacy systems, as well as acquire or develop systems.
Subsequently, in February 2018, OMB issued guidance for agencies to implement the Act.17 The guidance was intended to provide agencies additional information regarding the Technology Modernization Fund, and the administration and funding of the related IT working capital funds. Specifically, the guidance allowed agencies to begin submitting initial project proposals for modernization on February 27, 2018.
In addition, in accordance with the Act, the guidance provides details regarding a Technology Modernization Board, which is to consist of (1) the Federal Chief Information Officer (CIO) (Chair); (2) a senior official with IT development technical expertise from GSA; (3) a member of DHS's National Protection and Program Directorate;18 and (4) four federal employees with technical expertise in IT development, financial management, cybersecurity and privacy, and acquisition, appointed by the Director of OMB.19
In December 2019, the GAO reported that Congress had appropriated $125 million to the fund, but that challenges with covering the cost of operating the fund had resulted in fewer funds being available than anticipated for the new projects.20 On March 11, 2021, Congress and the President enacted legislation that appropriated an additional $1 billion to be available until September 30, 2025, to carry out the purposes of the fund.21
As of April 2021, the Technology Management Fund Board had approved approximately $89 million for 11 IT modernization projects across seven agencies: the Department of Agriculture, the Department of Energy, DHS, the Department of Housing and Urban Development (HUD), the Department of Justice, the Department of Labor, and GSA.