Modernizing Government Technology Reform Act
- Sponsor
- Rep. Mace, Nancy [R-SC-1]
- Committees
- Oversight and Government Reform Committee (primary)
- Last action
- Feb 4, 2026
Bottom line
This bill refines the operational framework and extends the lifespan of the Technology Modernization Fund, aiming to accelerate the modernization of federal legacy IT systems and improve cybersecurity by enhancing accountability and repayment structures.
What it actually does
The bill, titled the "Modernizing Government Technology Reform Act," amends Section 1078 of the National Defense Authorization Act for Fiscal Year 2018 to revise the Technology Modernization Fund (TMF). It clarifies how TMF funds can be used, strengthens repayment requirements for agencies, introduces new reporting obligations for agency and Federal Chief Information Officers regarding high-risk legacy IT systems, and extends the TMF's sunset date to December 31, 2032. The primary goal is to ensure the TMF focuses on modernizing, retiring, or replacing legacy IT systems and remains financially solvent.
Proponents argue
Proponents argue that the bill will increase the effectiveness and sustainability of the Technology Modernization Fund by ensuring funds are used for their intended purpose of modernizing critical legacy IT systems, enhancing cybersecurity, and improving government efficiency. They emphasize that stronger repayment requirements and clearer operational guidelines will make the TMF a more reliable and impactful tool for federal IT transformation, ultimately saving taxpayer money and improving public services.
Opponents contend
Opponents might argue that while the intent to modernize IT is good, the bill's new reporting requirements could create additional bureaucratic burdens for agencies, potentially slowing down the very modernization efforts it aims to accelerate. Concerns could also be raised about the extended sunset date, suggesting it might perpetuate a fund that has faced criticism for its operational model or impact, rather than seeking more fundamental reforms.
The bill is concise and focused, making it accessible for an informed reader to understand its provisions within a reasonable timeframe.
Section 2(1)(A), amending subsection (b)(3)
Realigned Use of Technology Modernization Fund (TMF)
This provision redefines how the Administrator, based on Board recommendations, can use TMF funds. It explicitly states funds are for acquiring, procuring, operating, or developing IT to modernize/retire legacy systems, enhance cybersecurity, improve long-term IT efficiency, or improve agency mission delivery. It also allows funds for services supporting these activities and mandates that funds only go to programs not denied or restricted by Congress. Crucially, it requires transfers to be reimbursed to ensure the Fund remains operational until its sunset.
Supporters argue
Supporters argue this clarification ensures TMF funds are precisely directed towards critical IT modernization and cybersecurity needs, preventing mission creep and maximizing impact. The reimbursement requirement ensures the fund's long-term viability.
Critics contend
Critics might argue that overly prescriptive rules could limit the TMF's flexibility to adapt to evolving technological needs or unforeseen agency priorities, potentially hindering innovation.
Tradeoffs
Balances the need for clear guidance and financial sustainability with potential limitations on flexibility for agencies to address diverse IT challenges.
Section 2(1)(A), amending subsection (b)(3)(B)
Authority to Suspend or Terminate Funding for Fraud
This amendment grants the Administrator, upon Board recommendation, the authority to suspend or terminate funding for any project where an agency head provided fraudulent or misleading statements in their application or proposal. This includes misrepresentations about technical design, business case, or program management.
Section 2(1)(C), amending subsection (b)(6)
Mandatory Repayment for Fund Solvency and Services
This amendment revises the written agreements for TMF transfers. It now explicitly requires repayment terms that ensure the total amounts in the Fund remain sufficient to keep it operational until its sunset (December 31, 2032). Additionally, agencies must fully reimburse the Fund for any services or work provided by the TMF Board in direct support of their projects.
Section 2(1)(C), amending subsection (b)(6)(B)
Incremental Funding Tied to Milestones and Reporting
This provision mandates that TMF funds transferred to an agency for projects must generally be provided incrementally. These increments are tied to metric-based development milestones achieved through rapid, iterative development processes. Funds are also contingent on the agency providing required reporting information to the Director. This aims to ensure funds are released only as progress is demonstrated.
Section 2(5), inserting new subsection (e)
Federal and Agency CIO Responsibilities for Legacy IT Inventory
This new subsection mandates that Agency Chief Information Officers (CIOs) provide an annual list of high-risk legacy IT systems to the Federal CIO. The Federal CIO must then compile a "Legacy Federal IT Inventory" and, crucially, a "Prioritization List" of the 10 legacy systems posing the greatest security, privacy, and operational risks government-wide. This prioritization list must be reported to Congress and the Comptroller General. The Director is also required to issue guidance on identifying high-risk systems and reporting formats.
Section 2(6), amending subsection (g)(1)
Extension of Technology Modernization Fund Sunset Date
This amendment changes the sunset date for the Technology Modernization Fund from "2 years after the date on which the Comptroller General of the United States issues the third report required under subsection (b)(7)(B)" to a fixed date of "After December 31, 2032." This provides a clear and extended operational period for the fund.