Technology Modernization Fund Set for Legislative Facelift
Extending the Technology Modernization Fund Board
The MGT Reform Act, introduced by Rep. Nancy Mace, seeks to extend the Technology Modernization Fund Board until 2030. The board, which was initially set to sunset in 2025, plays a crucial role in managing the Technology Modernization Fund (TMF).
Tightening Loan Repayment Language
The reform act removes the ability of the Office of Management and Budget (OMB) to grant waivers allowing agencies more than five years to repay TMF loans. Additionally, the General Services Administration (GSA), responsible for managing the TMF, is required to receive sufficient funds from agencies to keep the fund operational until December 2030.
Emphasizing Modernization of Legacy Systems
The proposed bill highlights the importance of using TMF investments to modernize or replace outdated federal IT systems. By focusing on projects that have the greatest impact on modernization efforts, the bill aims to ensure the fund is utilized effectively.
Following a former OMB official, the reform act addresses key issues within the MGT Act, offering greater visibility and accountability in the repayment process. The bill aims to provide a clear framework for agencies to follow, promoting the efficient use of TMF resources.
While House and Senate lawmakers have shown less support for the TMF in recent spending bills, the MGT Reform Act demonstrates Congress’s commitment to the fund’s mission. By tightening controls and setting clear expectations, Congress aims to be a better partner in ensuring the TMF is funded appropriately.