Government-Wide Technology Funding and Measurement in Flux

For more than a decade, the Federal Information Technology Acquisition Reform Act (FITARA) and the Technology Modernization Fund (TMF) have served as twin pillars of accountability and investment. Together, they helped move federal IT away from fragmented decision-making and aging systems toward a more strategic, enterprise-focused approach.

However, both programs are in a sort of holding pattern while Congress decides on 2026 funding, and while it re-examines how best to measure the agency IT modernization process against the quickly evolving tech environment and ongoing changes in the current administration's goals.

FITARA

The FITARA Scorecard provided a snapshot view of agency progress across a range of IT-related categories, giving agencies letter grades to score their progress in adding security measures, using cloud, implementing IT executive oversight, and more. These reviews have been credited with $31.4 billion in cost savings across the federal government.

The program was authored and championed by Rep. Gerry Connolly, D-Va, who continued measuring against the scorecard even after the House Committee on Oversight and Reform moved it off their official agenda. Connolly's death in May of 2025 left FITARA without a champion. In September, former Connelly staffer James Walkinshaw was elected to fill the House seat; he has said he'll continue a focus on strong oversight of federal IT, building on Connolly's legacy with FITARA.

A re-introduction of FITARA or the implementation of a similar program will need to include updates to the categories measured, and the metrics they are measured against, to be consistent with and meaningful to current IT priorities, including AI and automation goals as well as the focus on streamlined acquisition.

TMF

The TMF was created in 2017 to fund technology projects across the federal government, helping speed modernization efforts. This fund allowed agencies to begin critical IT projects without having to wait an entire budget cycle to get the money they needed. The TMF was intended to be a self-replenishing working capital fund that required agencies to repay the initial amounts they received via monies they were allocated in future budget cycles.

Since the start of the TMF, more than $1 billion has been invested into around 70 different projects across 34 federal agencies. However, the program expired at the end of fiscal year 2025 and a continuation of the program was not included in the continuing resolution that was passed to fund government operations. To reauthorize the TMF, Congress will either need to pass a standalone authorization bill or attach it to a larger government funding package.

A recent package of appropriations bills includes $5 million in TMF funding to "to remain available until expended." This amount is a small portion of the $200 million that was frozen when the program expired and an even smaller amount than the $1 billion that was allocated in 2021 as part of the American Rescue Plan. What this allocation does, however, is signal lawmakers' focus on finding a way to fund much-needed IT modernization in a timely manner.

A proposed new funding model would allow the TMF to pull up to $100 million from other agencies each fiscal year. The administration suggests that instead of requests for new discretionary funding, the TMF could recoup investments from unused money transferred from agencies.

What's Next

While the status of both FITARA and the TMF remain uncertain, new government-wide programs have been introduced to speed the acquisition and implementation of needed technology.

The General Services Administration's OneGov is a federal government-wide acquisition strategy that enables agencies to buy commonly used technology products and services through pre-negotiated, enterprise-level agreements. Because these agreements treat the government as a single customer, they allow different agencies to buy a technology at one standard rate, under a single service agreement.

A new hiring program, TechForce, allows people to work in government for two years and then transition to a private-sector job after that term is up. It differs from previous technology hiring programs in that participants are hired directly into a specific agency, rather than serving as consultants that work across multiple agencies and projects.

To stay on top of evolving federal technology policy, check out these resources:

  • Fed Tech Priorities 2026 (February 18, 2026; Washington, DC) - This event will bring together senior administration officials, congressional leaders, and agency technology executives to unpack the White House's FY26 agenda, including modernization funding, ONCD's cybersecurity roadmap, and AI implementation challenges.
  • Technology & Transformation Summit (March 17, 2026; Washington, DC) - Government leaders and industry experts will explore the transformation of mission delivery through IT innovation, workforce development, cybersecurity, and cloud technology.
  • 2026 Digital Transformation Summit (April 22, 2026; virtual) - Hear exclusive plans for next-generation evolutions in AI, cyber, user experience, enterprise IT, and more.
  • Government Contracting (data sheet) - Federal agencies spend nearly half a trillion dollars each year on common products and services, yet much of that buying still happens in silos. The Government Accountability Office (GAO) highlights how category management--using governmentwide contracts and centralized strategies--has already generated over $100 billion in savings but still leaves billions more unrealized.
  • Executive Order 14222: Implementing the President's ''Department of Government Efficiency'' Cost Efficiency Initiative (executive order) - In an effort to rein in government spending and boost transparency, this Executive Order launches a sweeping cost-efficiency initiative across federal agencies. Agencies must justify spending on contracts, grants, and non-essential travel, and will undergo strict reviews of procurement processes and real estate holdings. With centralized systems to log and assess expenditures, the order empowers leadership to cut waste, spotlight inefficiencies, and ensure federal dollars are put to better use.
  • Technology Business Management (white paper) - Federal IT spending exceeds $100 billion annually, yet many agencies still struggle to track and manage these investments effectively. This GAO report examines the stalled implementation of the Technology Business Management (TBM) framework--a standardized approach to categorizing and reporting IT costs.

For more on tech acquisition and management policy, search for additional events and resources on GovEvents and GovWhitePapers.

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