Fiscal 2024 spending package would rescind $100 million from TMF

A second appropriations package to fund the government for fiscal year 2024 released Thursday would rescind $100 million from the Technology Modernization Fund, clawing back support for governmentwide IT modernization projects it received through the American Rescue Plan.

The $1.2 trillion deal would be the final appropriations for the current fiscal year and avoid a government shutdown on Friday. Congress previously passed a fiscal year 2024 appropriations package earlier this month to fund six agencies. In addition to the rescission for TMF, the Thursday bill would also pull back $10 million already appropriated for the U.S. Digital Service under the American Rescue Plan.

In a statement to FedScoop, Rep. Gerry Connolly, D-Va., said he is “deeply disappointed” in the funding cuts and called the rescission of funds “draconian.” The Virginia Democrat assured that he will continue working to ensure resources for government technology demands, and highlighted that the cuts “jeopardize the health and safety” of those who rely on government services, such as families, veterans and first responders. 

“We have got to stop treating government IT as a luxury,” Connolly said in the statement. “It is a vital part of the federal government’s technology infrastructure and it plays an indispensable role in ensuring government agencies are functioning at their best on behalf of the American people we serve.”

The TMF, housed under the General Services Administration, is aimed at funding high-priority tech modernization projects throughout the federal government. The fund currently manages 51 investments across 29 federal agencies that in total are worth over $800 million. TMF received $1 billion from the American Rescue Plan in 2021. 

But GSA and Office of Management and Budget, whose officials lead the board that manages the fund, have had difficulty convincing lawmakers to meet the funding levels the Biden administration has requested. A Senate appropriations panel, for example, approved language last July that would have taken back $290 million from the TMF. 

A spokesman for Sen. Jerry Moran, R-Kan., said in an emailed statement that the rescission, “although less than what was in the Senate bill, is disappointing and damages the U.S. government’s ability to strengthen its cybersecurity and modernize its IT systems.”

Moran, who authored legislation that created the fund, will “work to ensure that this program is funded next year to get our agencies back on track,” the spokesman said.

The White House recently requested $75 million for the fund in fiscal year 2025, which is a decrease from $200 million in its 2024 request.

Previously, Connolly and Rep. Nancy Mace, R-S.C., announced the Modernizing Government Technology Reform Act of 2023, which extended the TMF until 2030 and added additional reporting requirements for high-risk IT systems used across the government. Additionally, the act would require funds to be repaid for sustainability and solvency. 

Last month, the GSA updated the TMF’s repayment policy, in concert with OMB, to reflect a more consistent repayment floor at 50%, with some rare exceptions to help the fund allow entities to continue investing in tech and cybersecurity modernization for years to come. 

In response to a FedScoop inquiry about the cuts, the OMB pointed to a Statement of Administration Policy, which supported the “swift passage” of the appropriations.

GSA didn’t immediately respond to a FedScoop request for comment.