The Trump administration's 2026 budget proposal focuses on reforming the Technology Modernization Fund (TMF) by allowing the General Services Administration (GSA) to draw funds from other agencies. The initiative is aimed at increasing TMF's investment capacity without requesting new federal funds. This shift would enable the TMF to tap into unobligated balances of expired discretionary funds. However, despite earlier boosts, the TMF only has $170 million available as of late last year, with future priorities including cybersecurity and modernization of aged systems amid stricter repayment obligations.
The Trump administration is not requesting new funding for the Technology Modernization Fund, but aims to facilitate alternate funding sources from other agencies.
The proposal allows TMF to utilize unobligated balances from expired discretionary funds, enhancing investment capacity while reducing appropriations compliance burdens.
Despite previous congressional increases, the TMF's funding has fluctuated, leaving it with only $170 million for new investments as of late last year.
Future investments from the TMF will prioritize cybersecurity, interoperability, and modernizing legacy systems, as agencies face strict repayment terms.
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