HR2985-119

What This Bill Does

The Modernizing Government Technology Reform Act rewrites core rules for the Technology Modernization Fund. It directs the Fund Administrator, following Technology Modernization Board recommendations, to use Fund money for agency IT acquisition, procurement, operation, or development when projects modernize, retire, or replace legacy systems; enhance cybersecurity and privacy; improve agency IT efficiency; or help agencies deliver services to the public. It limits funding to programs, projects, or activities that have not been denied or restricted by Congress and that will reimburse the Fund enough to keep it operational until the statutory sunset after December 31, 2032. It also requires written repayment terms, incremental funding tied to metric-based development milestones, suspension or termination when agencies submit fraudulent or misleading applications, and recurring inventories of high-risk legacy IT systems.

Who Benefits and How

Federal agencies with legacy IT systems benefit from a clarified funding path for modernization, replacement, cybersecurity, privacy, and service-delivery projects. Cybersecurity service providers, cloud service providers, and IT modernization contractors benefit from projects aimed at replacing obsolete systems and improving Federal cybersecurity. The Federal Chief Information Officer benefits from a formal Legacy Federal IT Inventory and a prioritized list of the 10 systems presenting the greatest security, privacy, and operational risks. Congressional oversight committees and the Comptroller General benefit from reports containing agency CIO lists, inventory updates, and prioritized high-risk systems.

Who Bears the Burden and How

Agency Chief Information Officers must identify high-risk legacy IT systems by September 30 deadlines and update those lists annually. Agency heads receiving Fund transfers must agree to repayment terms and provide information before incremental funding is released. The Fund Administrator and Technology Modernization Board must check congressional restrictions, monitor repayment, suspend or terminate projects with fraudulent or misleading statements, and document compelling circumstances for non-incremental transfers. The Director must issue implementation guidance within 180 days and report high-risk system lists within 14 days after compilation or updates.

Key Provisions

• Authorizes Technology Modernization Fund transfers for legacy IT replacement, cybersecurity and privacy improvements, efficiency gains, and public-service delivery.
• Requires Fund-supported programs, projects, or activities to be eligible under congressional restrictions and reimbursed enough to keep the Fund operational through sunset.
• Requires written repayment terms for agency transfers and services provided in direct support of projects.
• Requires incremental, milestone-based funding unless compelling circumstances are documented.
• Directs the Administrator to suspend or terminate projects with fraudulent or misleading application statements.
• Requires agency CIO legacy-system lists, a Federal CIO Legacy Federal IT Inventory, a top-10 high-risk systems list, and reports to Congress and GAO.