Sponsors (3)
The bill provides stronger, more accountable funding and transparency to modernize high‑risk federal IT and improve cybersecurity, but it reduces some congressional procedural oversight and ties funding to repayment ability in ways that may deter non‑reimbursable projects, shift costs to operating budgets, and introduce dispute‑related delays.
Federal agencies and the public: Enables agencies to modernize and replace high‑risk legacy IT, improving cybersecurity and reducing outages for services used by citizens.
Taxpayers and federal agencies: Requires milestone‑based, metric‑tied incremental transfers, increasing project accountability and reducing waste from large upfront spending.
Taxpayers and federal agencies: Requires agencies to repay transfers so the Fund remains solvent until sunset, preserving a revolving source for future IT modernization projects.
Taxpayers and Congress: Removes the requirement to follow reprogramming law or Appropriations Committee guidelines, reducing procedural congressional oversight over Fund transfers.
State and local governments and health systems: Limiting transfers to projects that can reimburse the Fund could deter agencies from pursuing needed projects that lack clear repayment mechanisms.
State/local governments and health systems: Tight repayment requirements and emphasis on repayment‑ability may shift costs onto agencies' operating budgets, potentially reducing funds for other programs or services.
Based on analysis of 2 sections of legislative text.
Revises permissible uses, repayment rules, reporting, and fraud controls for a federal IT modernization Fund and narrows a procedural constraint on transfers.
Official title: To amend section 1078 of the National Defense Authorization Act for Fiscal Year 2018 to increase the effectiveness of the Technology Modernization Fund, and for other purposes.
Introduced April 24, 2025 by Nancy Mace · Last progress April 24, 2025
Revises rules for a federal IT modernization fund so agency leaders can receive transfers to modernize or replace legacy IT, strengthen cybersecurity and privacy, and improve service delivery. It adds an explicit prohibition and authority to suspend or terminate fund transfers when an agency makes fraudulent or misleading statements in its application, and it adjusts repayment, transfer, and reporting rules for Fund amounts.