Congress urged to renew tech modernization fund before September

A Government Accountability Office report shows the Technology Modernization Fund (TMF) has begun delivering major savings and stronger cybersecurity, raising pressure on Congress to reauthorize the program before it expires in September.

The TMF was created in 2017 to help federal agencies replace outdated IT systems that are expensive to maintain and vulnerable to breaches. Agencies like the Department of Agriculture and the Small Business Administration have used the fund to upgrade legacy systems, cutting maintenance costs by millions and reducing cyber risks. The GAO found agencies saved an average of $2.50 for every $1 spent from the TMF, a return that has caught lawmakers’ attention.

The push to modernize comes after years of high-profile failures, including the disastrous launch of HealthCare.gov in 2013 and the 2020 Twitter hack that exposed federal employee data. Those incidents exposed how brittle old systems can cripple operations or leak sensitive information. The TMF was designed as a quick-response tool, letting agencies borrow money instead of waiting for annual budgets. So far, 12 projects have been funded, with cybersecurity upgrades accounting for nearly half the spending.

Congress now has two months to decide whether to extend the TMF or let it lapse. If it expires, agencies will lose their fastest path to modernize, leaving taxpayers exposed to higher costs and greater cyber threats. The GAO recommends making the fund permanent and increasing its budget from $1 billion to $3 billion to keep pace with demand. Without action, the same problems that led to the TMF’s creation will only get worse.