Modernizing Government Technology Reform Act
- Bill Number
- H.R. 2985
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Government Operations and Politics
- Status
- Introduced
- Latest Action
- 2026-02-04: Ordered to be Reported (Amended) by the Yeas and Nays: 42 - 0.
- Last Updated
- 2026-04-17T16:19:21Z
AI-Generated Summary
Purpose
The Modernizing Government Technology Reform Act (H.R. 2985) aims to enhance the effectiveness of the Technology Modernization Fund (TMF), a program established to help federal agencies update outdated information technology (IT) systems. It refocuses the fund's use on modernizing legacy IT, improving cybersecurity and privacy, and ensuring long-term efficiency, while extending the fund's operational life and adding oversight mechanisms.
Key Provisions
- Fund Usage Rules: The TMF Administrator, guided by a board, can transfer funds to agencies for acquiring, developing, or operating IT to modernize or replace outdated systems, boost cybersecurity and privacy, improve efficiency, or enhance mission performance and public services. Funds support only congressionally approved projects and require reimbursement to maintain the fund's solvency until it ends in 2032. Funding can be suspended or terminated for projects involving fraudulent or misleading applications.
- Transfer and Repayment Requirements: Transfers to agencies must include repayment terms ensuring the fund remains operational. Funds are released incrementally based on achieved milestones using rapid development processes. Agencies must fully reimburse for any direct support services provided by the fund.
- Reporting and Oversight: Agencies must report project details, including market research on commercial options and repayment plans. The fund's board evaluates projects based on repayment ability, impact on legacy systems, and overall government benefits. Annual reports to Congress cover repayments, cost savings, and project outcomes.
- Inventory of Legacy IT Systems: Agency Chief Information Officers (CIOs) must submit annual lists of high-risk legacy IT systems (outdated systems critical to operations that pose security, privacy, or operational risks) to the Federal CIO. The Federal CIO compiles a government-wide "Legacy Federal IT Inventory" and prioritizes the top 10 riskiest systems, reporting them to Congress and the Government Accountability Office (GAO) within specified deadlines.
- Guidance and Definitions: The Federal CIO must issue guidance within 180 days on identifying and reporting legacy systems, including formats for inventories. Key terms include "Agency CIO" (each agency's designated IT leader) and "Federal CIO" (head of the Office of Electronic Government).
- Extension of Fund: The TMF's sunset date (when it ends) is extended from two years after the third GAO report to after December 31, 2032.
Significant Changes to Existing Law
This bill amends Section 1078 of the National Defense Authorization Act for Fiscal Year 2018 (which created the TMF) by:
- Narrowing fund uses to prioritize legacy system modernization, cybersecurity, and mission improvements, while prohibiting funding for denied or restricted congressional projects.
- Strengthening repayment mandates to ensure fund sustainability, replacing vague solvency references with specific requirements tied to the 2032 sunset.
- Adding incremental funding tied to milestones and requiring documentation of commercial alternatives in proposals.
- Eliminating some prior reporting on cost savings reliability and adding fraud detection for project termination.
- Introducing a new mandatory inventory process for legacy IT, with annual updates and congressional reporting on high-risk systems—previously, no such government-wide tracking existed.
- Shifting board priorities to emphasize repayment capability and legacy system impacts over broad government-wide effects.
- Extending the fund's life by nearly a decade, removing the tie to GAO reports.
Potential Impacts
- Government Agencies: Agencies will face stricter accountability for TMF funds, including detailed reporting and repayment, potentially accelerating IT upgrades but increasing administrative burdens. The legacy IT inventory could lead to prioritized funding for high-risk systems, reducing vulnerabilities like data breaches.
- Citizens: Improved cybersecurity and modernized systems may enhance service delivery (e.g., faster online government interactions) and protect personal data privacy, though short-term disruptions from system replacements are possible.
- International Relations: Minimal direct impact, but stronger federal IT could indirectly bolster U.S. cybersecurity posture against foreign threats, supporting national security efforts.
Main Stakeholders Affected
- Federal Agencies: All executive branch agencies using IT systems, particularly their CIOs, who must identify and report legacy systems and manage TMF-funded projects.
- Office of Management and Budget (OMB): The Federal CIO (within OMB's Office of Electronic Government) oversees inventories, guidance, and prioritization.
- Congress: Committees on Oversight and Government Reform (House) and Homeland Security and Governmental Affairs (Senate) receive reports; the bill ensures funds align with congressional intent.
- Technology Modernization Board and TMF Administrator: Responsible for fund allocation, project reviews, and fraud detection.
- GAO and Comptroller General: Involved in oversight and receiving inventory reports.
- Taxpayers and the Public: Indirectly affected through more efficient government IT spending and improved services.
Notable Legal, Constitutional, or Political Implications
- Legal: Reinforces congressional oversight by limiting funds to approved projects and mandating fraud-based terminations, potentially reducing misuse while complying with existing federal IT laws (e.g., under Title 44 of the U.S. Code). The inventory requirement creates a new reporting obligation without expanding executive authority.
- Constitutional: Aligns with Congress's spending power (Article I) by realigning funds to original intent and extending the program, avoiding separation-of-powers issues.
- Political: Bipartisan sponsorship (by Reps. Mace and Connolly) signals broad support for government efficiency. Extending the TMF to 2032 commits long-term funding, which could face budget debates, but the focus on legacy systems addresses ongoing concerns about federal IT vulnerabilities without major new spending. No significant controversy anticipated, as it builds on an existing program.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (2)
Rep. Connolly, Gerald E. [D-VA-11], Rep. Brown, Shontel M. [D-OH-11]
Recent Actions
- 2026-02-04: Ordered to be Reported (Amended) by the Yeas and Nays: 42 - 0.
- 2026-02-04: Committee Consideration and Mark-up Session Held
- 2025-04-24: Referred to the House Committee on Oversight and Government Reform.
- 2025-04-24: Introduced in House
- 2025-04-24: Introduced in House
Bill Versions
- Modernizing Government Technology Reform Act — issued 2025-04-24 — PDF (16 pages)