The Technology Modernization Fund (TMF) is launching a targeted push for new proposals focused on generative artificial intelligence (AI) and permitting modernization, while warning agencies that the window for new awards is closing on Sept. 30, absent congressional action.
TMF Executive Director Jessie Posilkin announced this week that the fund is explicitly prioritizing two new calls for proposals – “better, faster permitting” and “the fast and responsible adoption of generative AI.”
“This call is moving fast, partly out of necessity. We have a very narrow window between now and September 30, when our authorization to make new investments ends (absent congressional action, of course…),” Posilkin said in a July 9 LinkedIn post. “With more time, we could do even more – but we’ll meet as much of the agency need as we can, while we can.”
According to the call for proposals, agencies have until July 24 to submit initial project proposals for consideration in this funding round, but earlier submissions are encouraged to support expedited review.
The AI funding opportunity, developed in collaboration with the General Services Administration’s USAi team, seeks “high-impact and shovel-ready” projects that prepare agency data and infrastructure for AI, pilot emerging AI applications, or deploy secure enterprise-scale AI capabilities. TMF said the initiative is aimed at agencies with existing technology infrastructure and capability gaps that limit responsible AI adoption.
The permitting modernization call looks to advance the outcomes outlined in President Donald Trump’s April 2025 memorandum on Updating Permitting Technology for the 21st Century. TMF is looking for projects that “demonstrably advance the agency’s Permitting Technology Action Plan implementation.”
TMF said it is especially interested in permitting technology proposals that are “lower-profile, yet high-impact,” such as data modernization to improve interoperability and modular front-end applications and tools that improve case management, transparency, and timeline predictability.
“From the beginning, TMF has been helping agencies meet the moment – from cloud adoption to security to automation,” Posilkin wrote. “I’m excited we’re still poised to help agencies meet a critical moment of opportunity – and a bipartisan one, at that!”
Absent congressional action to extend TMF’s investment authority, Sept. 30 will mark the end of the fund’s ability to approve new modernization projects, although it will continue overseeing its existing portfolio of investments.
Last month, Posilkin said the fund has more than $200 million left to invest in technology modernization projects this year.
Nevertheless, she stressed that $200 million is a “drop in the bucket” amid the increasing scale and scope of government technology challenges.
“To me, this feels extra important,” Posilkin said, referring to making a significant capital investment in the TMF. “If the government wants to serve constituents well, we need to make an investment in the tools that make that possible.”
Posilkin will be speaking at MeriTalk’s Shift Happens event on July 14 to discuss modernization efforts as budgets tighten.