Congress reauthorized the Technology Modernization Fund through the fiscal year. Why that matters and what’s next

Congress recently reauthorized the Technology Modernization Fund (TMF) through Sept. 30, 2026, enabling the TMF board to continue selecting the strongest proposals and recommending funding where it will deliver the greatest impact.

National competitiveness, security, and effective service delivery depend on sustained federal technology modernization. This extension cannot be the final one. Reauthorization beyond this fiscal year allows the TMF to function as a true revolving fund, with agencies repaying their investments so those same dollars can fund additional modernization efforts without requiring new appropriations.

The fund has already proven it can tackle urgent problems agencies face every day:

The TMF modernized the U.S. Department of Agriculture’s specialty crops inspection system that ensures safe food reaches school lunches and military rations, eliminating paper-based processes and saving $1.72 million annually while inspectors now use tablets instead of clipboards to process over 60 billion pounds of produce.

The TMF enabled the U.S. Department of Veterans Affairs’ benefits portals to provide clear confirmation when applications are submitted, reducing uncertainty and helping veterans receive benefits faster.

The TMF upgraded the U.S. Department of Housing and Urban Development systems supporting 100 grant, subsidy and loan programs, saving $8 million annually and enabling faster support for over 30,000 users.

These are real-world problems the TMF has solved for federal agencies and the people they serve every day.

Technology does not wait for budget cycles
Traditional annual appropriations are designed for predictable, stable programs and handle most federal IT investments effectively. However, certain technology challenges do not operate on that timeline, particularly when agencies face urgent security threats, system failures or opportunities that cannot wait for the next budget cycle.

Legacy systems fail on their own schedules, cybersecurity threats evolve daily, and public expectations for digital services are shaped by the private sector in real time. So why is the federal government still maintaining clunky systems that were built decades ago for missions that have fundamentally changed? Agencies face a double burden of keeping outdated technology running while trying to fund modern replacements through budget processes that move too slowly.

As House Oversight and Government Reform Chairman James Comer recently noted, the annual budget cycle has limitations when it comes to urgent technology needs. Modernization often requires flexible, cross-agency funding and oversight that move at the speed of risk.

That is where the TMF makes a measurable difference.

● 83 percent of TMF investments address urgent cybersecurity needs
● 81 percent modernize mission-critical systems
● 65 percent improve digital services for those who depend on them every day
● 54 percent build shared platforms that multiply the value of a single investment across multiple agencies

A governance model built for accountability
The TMF board evaluates competing proposals and selects only the strongest investments, requiring agencies to demonstrate viable technical approaches and commit to repayment that recapitalizes the fund for future projects. After selection, oversight operates in real time. The board, GSA and OMB review every scope change, milestone status, funding transfer and performance metric as they occur, not just quarterly. This allows immediate intervention when needed, whether that means deploying technical support, demanding course corrections or terminating underperforming investments.

That sustained oversight produces tangible results:

$12 billion in estimated cost savings and efficiency gains that protect taxpayer dollars and allow federal agencies to invest in better public services
378 million work hours saved, freeing federal employees to focus on serving the public rather than maintaining outdated systems
70 percent reduction in security risk, better protecting personal data for millions of Americans
69 percent fewer process steps, meaning less time navigating government websites to access benefits or services
79 percent increase in customer satisfaction as services become faster and easier to use
47 percent faster project completion, delivering improvements to the public sooner rather than years later

Why long-term certainty matters
The TMF board, chaired by Federal Chief Information Officer Greg Barbaccia, stands firmly behind the case for reauthorization beyond FY26. Short-term reauthorization keeps the lights on. Long-term certainty enables transformation.

Agencies planning multi-year modernization efforts need confidence that the TMF will remain available to fund them. Without sustained TMF authorization, leaders are forced into incremental fixes instead of comprehensive upgrades. That means pouring money into patching outdated systems rather than replacing them wholesale, like spending resources to repair a pager instead of upgrading to a smartphone. This approach costs more over time and leaves vulnerabilities exposed.

Globally, nations that can mobilize quickly around critical technologies set standards, shape markets and secure strategic advantages. When federal agencies face funding constraints that slow modernization while threats and expectations accelerate, the United States risks falling behind in the very technologies where American leadership matters most. The TMF exists to help maintain that competitive edge.

TMF is targeted intervention in the systems that keep the government running for taxpayers and the American people. It reflects a bipartisan recognition that technology modernization is foundational to secure services, protected taxpayer dollars and maintained public trust.

Whether you are a federal employee trying to serve the public more effectively, a contractor supporting government modernization or a taxpayer who depends on digital services working correctly the first time, the TMF is designed to help agencies leverage commercial solutions and shared services to operate smarter and faster. Congress has consistently supported this approach across multiple administrations because it works.

Congress’ reauthorization through September is an important step. The next step is treating modernization as an enduring national priority.

Jessie Posilkin is acting executive director of the Technology Modernization Fund.