GSA pushes full repayment for the Technology Modernization Fund
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By
Natalie Alms
President Donald Trump first signed the fund into law in 2017.
The government’s revolving fund for technology upgrades is moving to prioritize full repayment of investments, the General Services Administration announced Friday.
The move is a reversal of a Biden-era relaxation of reimbursement requirements for the Technology Modernization Fund, meant to account for projects that may not yield cost savings but still provide other benefits. Cybersecurity projects may not yield cost savings but improve the safety of federal systems, for example.
President Donald Trump signed the law creating the TMF in 2017. The fund is meant to give agencies access to multi-year funding for technology projects outside of the annual appropriations process. Its backers have touted the success rates of TMF projects and advocated for additional appropriations to meet demand, although lawmakers have often hesitated to put money into the fund.
The Biden administration moved to offer partial and minimal repayment options in 2021 after the fund got a $1 billion boost from the American Rescue Plan before moving to a 50% minimum repayment early last year.
GSA says that the fund has put $1.05 billion into 69 projects across 34 agencies since its inception. Moving forward, it appears that partial repayment isn’t fully out of the question, as GSA’s press release about the change states that there will be “an emphasis on developing plans that prioritize full repayment whenever possible.”
“Our digital infrastructure is fundamental to everything the government does,” said Federal Chief Information Officer and TMF Board Chair Gregory Barbaccia in a statement. “This shift transforms a finite appropriation to an enduring fixture of our modernization strategy, creating lasting institutional capacity to address technology debt.”
The fund is currently under the acting leadership of Jessie Posilkin. Its previous director, Larry Bafundo, left the leadership post in February, and the staffing levels at the fund’s office overall have shrunk since January.
The TMF is also starting down a December sunset date, something Reps. Nancy Mace, R-S.C., and Gerry Connolly, D-Va., are looking to address with a newly re-introduced reauthorization bill, which would also set certain reimbursement requirements.