TMF names new director

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The fund’s current deputy executive director, Larry Bafundo, will be taking the helm of a program facing down budget and authorization challenges in the coming months.

Larry Bafundo, formerly the deputy executive director at the Technology Modernization Fund, will now serve as the new executive director for the revolving fund, according to an internal email from the General Services Administration obtained by Nextgov/FCW

The last permanent head of the TMF, Raylene Yung, left the post last fall after serving in the position since 2021. 

Jessie Posilkin, the fund’s customer experience portfolio director, served as the acting head of the TMF before Bafundo took over the acting role when he joined the agency in January. 

Bafundo previously worked at GSA’s 18F and most recently led efforts at the Labor Department to modernize the unemployment insurance system. 

“Since returning to GSA in January, we’ve seen his thoughtful and strategic leadership that has set up the TMF team for future success,” Katy Kale, GSA’s deputy administrator, wrote in the email about the change. 

Bafundo takes on the role as the TMF stares down funding uncertainty as it uses up the last of its $1 billion in funding Congress put in the fund in the 2021 American Rescue Plan Act.

“The TMF Board has allocated the majority of American Rescue Plan funding — over $865 million already, with investments announced on a rolling basis,” a GSA spokesperson told Nextgov/FCW. In total, the TMF has funded over $950 million in IT projects. 

At the same time, Republicans in the House have issued a funding proposal for fiscal 2025 that would not add any new money to the TMF.

Leaders at GSA have often struggled to convince lawmakers to add additional money to the revolving fund since its creation in 2017, with lawmakers often citing concerns about payback mechanisms for TMF, which they say was intended to be self-sustaining.

“The TMF continues to be open for business and remains an opportunity for the federal government to make strategic investments that are aligned with the fast pace of changing technology and inclusive of public needs and expectations, rather than the pace of budget cycles,” the GSA spokesperson told Nextgov/FCW. 

“However, to meet the growing demand… it is essential that Congress provide sustained funding for the TMF,” they noted.

TMF is also facing a looming sunset in 2025. The House passed a bipartisan reauthorization bill in May that would extend the fund and make some foundational changes to the TMF, including around reimbursement requirements.

GSA and other advocates for the TMF say that the model has been effective in helping government agencies fund IT modernization. 

“For six years, TMF has been a crucial way to invest in IT modernization projects that enable the federal government to deliver simple, seamless, and secure services to the American public,” Kale said in the email announcing Bafundo’s new role.