TMF funding uncertainty looms as congressional support wanes

The Technology Modernization Fund (TMF) has nearly exhausted its $1 billion American Rescue Plan Act funding, with only $170 million remaining, according to GSA, despite TMF’s successes in modernizing federal IT., reports NextGov.

Successes include CBP’s $15 million migration to the cloud from its legacy mainframe systems, achieving significant operational efficiencies. This project was one of the largest federal government mainframe migrations, moving off outdated COBOL systems. The modernization is now saving CBP over $30 million annually in legacy operations and maintenance costs, demonstrating the financial and operational benefits of TMF investments.

Labor’s TMF-funded $42 million workers’ compensation system modernization replaced an outdated system that hindered efficiency and increased costs with streamlined claims processing and enhanced user experience for federal workers seeking compensation.

The House zeroed out TMF’s funding for fiscal 2025, while the Senate proposed only a $25 million boost, far below the $75 million requested by the Biden administration.

Repayment requirements were originally set to sustain TMF but have been relaxed, leading to criticism that the fund is not self-sustaining. Some lawmakers, like Rep. Gerry Connolly, argue that Congress’s reluctance to fund TMF jeopardizes its future. While TMF boasts an 80% success rate compared to 13% for traditional government IT projects, its repayment model remains contentious .

Congressional hesitancy reflects broader doubts about TMF’s cost-benefit model and concerns that funds could be better allocated. Without new appropriations, TMF’s ability to drive IT modernization could be severely constrained.