Sponsors (3)
The bill aims to modernize and secure high‑risk federal IT through prioritized inventories and accountable, repayable funding—protecting taxpayers and focusing remediation—but does so in ways that may slow urgent projects, increase agency paperwork, and favor reimbursable projects over essential non‑revenue upgrades.
Federal agencies (and therefore taxpayers and federal employees) can replace high‑risk legacy IT, improving cybersecurity and reducing service‑disrupting outages.
The bill creates a consolidated federal inventory and a 10‑system priority list so remediation resources focus on the systems posing the greatest security, privacy, and operational risks.
Funding is conditioned on repayment and milestone‑based disbursements, encouraging project accountability, reducing wasteful spending, and improving fiscal stewardship for taxpayers and program managers.
Requiring agencies to reimburse the Fund means transfers may reduce funds available for other agency programs or slow project progress, impacting state/local governments and health systems that rely on timely federal support.
Milestone‑tied, incremental disbursements can delay urgent, full‑scale funding for critical IT projects unless agencies demonstrate 'compelling circumstances,' potentially prolonging exposure to risk for federal services and taxpayers.
Limiting Fund support to projects that will reimburse the Fund may bias funding toward revenue‑generating or easily measurable projects, leaving essential but non‑reimbursing upgrades (e.g., accessibility, basic security hygiene) underfunded for hospitals and other public services.
Based on analysis of 2 sections of legislative text.
Modifies rules for the federal IT modernization fund: expands permitted uses, requires milestone-based disbursements and repayment, and adds fraud-based termination authority.
Introduced April 24, 2025 by Nancy Mace · Last progress April 24, 2025
Authorizes changes to how the federal IT modernization fund may be used and how funds are transferred and repaid. It expands permitted purposes for transfers to agencies for IT modernization, cybersecurity, efficiency, and mission delivery; requires milestone-based, incremental disbursements and prior provision of Director-required information; adds new repayment requirements; and gives the Administrator authority to suspend or terminate funding when an agency submits fraudulent or misleading information in its application. The amendment also removes a prior cross-reference to reprogramming/Appropriations Committee guidance and makes technical edits to statutory language.