Biden Administration Proposes $75M TMF Budget

The Biden administration has sought $75 million for the Technology Modernization Fund for the fiscal year 2025, less than half of what lawmakers asked for in fiscal 2024.

According to the White House’s budget request, the $75 million will support IT modernization efforts and build on over $750 million that the TMF invested in federal IT projects. The modest funding request comes amid struggles from the General Services Administration and the Office of Management and Budget to keep the TMF afloat.

In the summer of 2023, the House Appropriations Committee sought to remove TMF allocations for FY 2024 to “cut wasteful spending” across the federal government. Meanwhile, the committee’s Senate counterpart sought to rescind $290 million allocated to the TMF through the American Rescue Plan, FedScoop reported.

The White House request came after Rep. Gerry Connolly, D-Va., urged lawmakers to approve a $6 billion funding request for the TMF. According to Connolly, TMF investments should be made to avoid larger modernization costs and technology-related risks.

Despite an uphill battle, the TMF has supported agencies looking to modernize their systems. The latest funding round was announced in January, when the TMF allocated $71.2 million to help the GSA, the Armed Forces Retirement Home and the Department of Justice improve various systems and enhance customer experience.