On Dec. 12, 2025, Congress‘s authorization of the Technology Modernization Fund expired, limiting the government’s ability to deploy up to $200 million that could otherwise go toward improving federal information technology systems.
Created in 2017, the TMF helps agencies overcome the upfront costs that often block IT modernization — funding cloud migration, data transfers, and workforce retraining while requiring projects to repay the fund from long-term savings. It prioritizes cybersecurity, accelerates delivery of services, and enables agencies to move away from brittle legacy systems toward modern, modular platforms.
Today, the federal government spends over $100 billion annually on IT, with the majority going to maintaining legacy and obsolete systems. The status quo not only squanders taxpayer funds, but it also worsens essential government services, weakens cybersecurity, and harms citizens who waste their own time and money interacting with these aging and ineffective services.
