Technology Modernization Fund

{{short description|Technology funds provided by the United States Government}} {{Infobox website | name = Technology Modernization Fund | logo = Technology Modernization Fund Logo.png | founded = 2017 | area_served = U.S. government and customers | owner = General Services Administration (GSA) and Office of Management and Budget (OMB) | services = Funding | website = {{URL|https://tmf.cio.gov/}} | commercial = No }}

The '''Technology Modernization Fund (TMF)''' is a technology and innovation funding vehicle, authorized by the Modernizing Government Technology Act of 2017.<ref name=":3">{{Cite web |last=Rep. Hurd |first=Will [R-TX-23 |date=2017-05-18 |title=Text - H.R.2227 - 115th Congress (2017-2018): MGT Act |url=https://www.congress.gov/bill/115th-congress/house-bill/2227/text |access-date=2025-06-27 |website=www.congress.gov}}</ref> TMF provides multi-year funding to agencies to deliver services to the American public more quickly, securely, and responsively. TMF is managed as a partnership between the TMF Board, the General Services Administration (GSA), and the Office of Management and Budget (OMB). TMF operates on a repayable model requiring agencies to reimburse the fund.<ref name=":1">{{Cite web |last=Goldstein |first=Phil |date=December 13, 2017 |title=How the MGT Act Will Spur Agencies' IT Investments in 2018 and Beyond |url=https://fedtechmagazine.com/article/2017/12/how-mgt-act-will-spur-agencies-it-investments-2018-and-beyond |website=FedTech}}</ref>

== Background ==

In 2017, federal IT modernization was deemed urgent due to a number of high-profile failures such as Healthcare.gov, aging infrastructure, and security concerns flagged by the Government Accountability Office (GAO).<ref name=":0">{{Cite web |last=Office |first=U. S. Government Accountability |date=2016-05-25 |title=Information Technology: Federal Agencies Need to Address Aging Legacy Systems {{!}} U.S. GAO |url=https://www.gao.gov/products/gao-16-696t |access-date=2025-06-27 |website=www.gao.gov |language=en}}</ref><ref>{{Cite news |last1=Goldstein |first1=Amy |last2=Eilperin |first2=Juliet |date=2013-11-23 |title=HealthCare.gov contractor had high confidence but low success |url=https://www.washingtonpost.com/national/health-science/healthcaregov-contractor-had-high-confidence-but-low-success/2013/11/23/1ab2c2b2-5407-11e3-9fe0-fd2ca728e67c_story.html |access-date=2025-06-27 |newspaper=The Washington Post |language=en-US |issn=0190-8286}}</ref> GAO found that agencies were spending a majority of their IT budget maintaining legacy systems.<ref name=":0" />

The bipartisan Modernization Government Technology (MGT) Act was signed into law in December, 2017 and was informed by a number of existing bills including Rep. Will Hurd’s Modernizing Outdated and Vulnerable Equipment and Information Technology, MOVE IT, Act and Rep. Steny Hoyer’s IT Modernization Act.<ref>{{Cite web |last=Ehlinger |first=Samantha |date=2016-09-14 |title=New legislation blends MOVE IT Act, IT Modernization Fund |url=https://fedscoop.com/new-it-modernization-bill-establishes-individual-agency-working-funds-and-a-centralized-modernization-fund/ |access-date=2025-06-27 |website=FedScoop |language=en-US}}</ref> The MGT Act included two primary provisions including the establishment of the '''Technology Modernization Fund (TMF)''' and the Technology Modernization Board.<ref name=":2">{{Cite news |date=February 27, 2018 |title=OMB Memo M-18-12: Implementation of the Modernizing Government Technology Act |url=https://www.whitehouse.gov/wp-content/uploads/2017/11/M-18-12.pdf |work=U.S. Federal Government}}</ref> == Goals ==

The funding needed to support large IT modernization efforts are often hard for federal agencies to justify.<ref name=":4">{{Cite web |title=What Is the Technology Modernization Fund (TMF)? |url=https://www.investopedia.com/technology-modernization-fund-5207170 |access-date=2025-06-27 |website=Investopedia |language=en}}</ref> The purpose of TMF is to give agencies more flexibility by providing them with multi-year funding to invest in modern technology solutions and deliver services to the American public more quickly, securely, and responsively.<ref name=":4" /> The MGT Act states the fund should "improve, retire, or replace existing federal IT systems to enhance cybersecurity and improve efficiency and effectiveness."<ref name=":3" /> TMF also emphasizes proposals that support system updates, modular architecture, automated processes, improved operations, fraud prevention, deduplication, and utilization of existing shared services.<ref>{{Cite web |title=TMF Website, How to get funding |url=https://tmf.cio.gov/fit/ |website=TMF Website}}</ref>

== Funding and Administration ==

TMF is managed as a partnership between the TMF Board, the Office of Management and Budget (OMB), and the General Services Administration (GSA) who administers the funds. The initial MGT Act and subsequent guidance established a board with seven members, including the Federal Chief Information Officer (CIO), senior officials from GSA and Department of Homeland Security, and four federal employees with technical expertise in information technology development, financial management, cybersecurity and privacy, and acquisition, appointed by the Director of OMB.<ref name=":2" />

The amount in the fund fluctuates year over year.<ref name=":4" /> The MGT Act included an initial $250 million in appropriations for both the 2018 and 2019 fiscal years.<ref name=":3" /> In 2022, the fund included an additional $1 billion from the American Rescue Plan Act although some of those funds were later reappropriated.<ref>{{Cite web |last=Nyczepir |first=Dave |date=2021-04-09 |title=White House proposes even more for Technology Modernization Fund |url=https://fedscoop.com/technology-modernization-discretionary-request-2022/ |access-date=2025-06-28 |website=FedScoop |language=en-US}}</ref><ref name=":5">{{Cite web |date=2024-09-24 |title=TMF at the tipping point |url=https://www.nextgov.com/modernization/2024/09/tmf-tipping-point/399776/ |access-date=2025-06-28 |website=Nextgov.com |language=en}}</ref> For fiscal year 2026, GSA proposed supplying the fund with alternate sources to reduce the reliance on congressional funding, including collecting deobligated funds from agencies.<ref name=":7">{{Cite web |last=Miller |first=Jason |date=2025-06-03 |title=White House wants to move TMF to 'pass the hat' funding model |url=https://federalnewsnetwork.com/it-modernization/2025/06/white-house-wants-to-move-tmf-to-pass-the-hat-funding-model/ |access-date=2025-06-28 |website=federalnewsnetwork.com |language=en-US}}</ref>

To-date, the TMF has operated on a repayable model requiring agencies to reimburse some or all of the funds.<ref name=":5" /> To access the funds, agencies must first submit a proposal, detailing the effort, milestones, and other details.<ref name=":4" /> As of 2024, 40 of the 60 TMF funded projects have reimbursed the fund.<ref name=":5" />

== Impact == As of 2024, TMF has made 63 investments across 34 federal agencies, totaling $1 billion.<ref>{{Cite web |date=2024 |title=TMF Fiscal Year 2024 Annual Report |url=https://tmf.cio.gov/files/2024/12/TMF-FY24-Annual-Report.pdf |website=TMF Website}}</ref> According to OMB staff, the projects TMF invests in has a 80% success rate compared to the 13% success rate of large government projects that use traditional budgeting methods, partially due to the hands-on technical assistance and guidance from TMF.<ref name=":5" />

Notable investments include:

*NASA: Accelerate cybersecurity and operational upgrades to its network.<ref name=":6">{{Cite web |last=Miller |first=Jason |date=2024-04-09 |title=TMF Board invests $47M in projects at NASA, Labor |url=https://federalnewsnetwork.com/it-modernization/2024/04/nasa-labor-receive-extra-funding-for-it-modernization/ |access-date=2025-06-28 |website=federalnewsnetwork.com |language=en-US}}</ref> *U.S. Department of Labor (DOL): Replace outdated worker compensation system.<ref name=":6" /> *U.S. Department of Justice (DOJ) Antitrust Division: Improve customer communication support.<ref>{{Cite web |last=Heckman |first=Jory |date=2024-01-26 |title=TMF funds 3 more agency projects to improve IT, customer service |url=https://federalnewsnetwork.com/it-modernization/2024/01/tmf-funds-3-more-agency-projects-to-improve-it-customer-service/ |access-date=2025-06-28 |website=federalnewsnetwork.com |language=en-US}}</ref> *Veterans Affairs (VA): Digitize paper forms and services for Veterans.<ref>{{Cite web |date=2023-07-06 |title=Technology Modernization Fund announces targeted investments to improve digital customer experience and enhance data protection |url=https://www.gsa.gov/about-us/newsroom/news-releases/technology-modernization-fund-announces-targeted-i-07062023 |access-date=2025-06-28 |website=U.S. General Services Administration |language=en}}</ref>

== Criticism == Experts and government officials have expressed the need to find new funding mechanisms that don't rely upon congressional appropriations. For fiscal year 2026, GSA proposed supplying the fund with alternate sources to reduce the reliance on congressional funding, including collecting deobligated funds from agencies.<ref name=":7" />

Other suggested improvements call for the fund to shift from funding static IT modernization to building internal agency capabilities—through training, investment criteria based on product methods, and funding dedicated product teams—to drive continuous, user-focused transformation.<ref>{{Cite web |title=Driving Product Model Development with the Technology Modernization Fund |url=https://fas.org/publication/model-product-tmf-development/ |access-date=2025-06-28 |website=Federation of American Scientists |language=en-US}}</ref>

== References == {{reflist}}

== External links == * {{Official website|https://tmf.cio.gov/}} * [https://www.congress.gov/bill/115th-congress/house-bill/2227/text Modernizing Government Technology Act of 2017]

Category:General Services Administration Category:Federal government of the United States Category:Information technology in the United States Category:Open government in the United States