A coalition of leading technology organizations is urging Senate appropriators to extend authorization for the Technology Modernization Fund (TMF), which is set to expire on Sept. 30 without congressional action.
In a July 30 letter shared with MeriTalk, the coalition warned Sen. Susan Collins, R-Maine, the Senate Appropriations Committee chairwoman, and Sen. Patty Murray, D-Wash., the vice chair, that the Technology Modernization Board would be unable to make new investments if the Sept. 30 deadline passes. Existing investments would continue.
“Extending the TMF … protects the [Trump] Administration’s priorities around artificial intelligence adoption, modernization of legacy systems, and cybersecurity improvements,” said the letter, which requested the extension as part of a continuing resolution temporarily funding the federal government that the Senate is considering.
“It preserves the value of investments already made across dozens of agencies and reflects the long-standing bipartisan support for the program in both chambers,” added the letter, which was signed by the Alliance for Digital Innovation (ADI), the Advanced Technology Academic Research Center (ATARC), the Business Software Alliance (BSA), and the Center for Procurement Advocacy (CPA).
Created under the Modernizing Government Technology Act of 2017, the TMF provides agencies with funding for technology modernization projects that they can repay over time.
From fiscal years 2018 through 2025, the TMF received more than $1 billion in net appropriations, which the board used to invest about $1.03 billion in 68 unclassified IT modernization projects, according to a July 23 Government Accountability Office report.
Spokespeople for Collins and Murray have not responded to requests for comment on the coalition’s letter.
The House on July 21 passed a bill to temporarily fund the government through Dec. 4, seeing to avoid a potential government shutdown before the midterm elections in November. The Senate has not acted.
When it does, the coalition emphasized the TMF’s projected cost savings in urging appropriators to extend authorization for the fund and the board.
Its letter cited the recent GAO report, which found that the fund had achieved “small savings” so far but is expecting “substantial future savings.” Of the 68 TMF projects approved so far, GAO said, 11 have saved a total of $13.5 million, with 24 expected to save a combined $1.06 billion over time.
The TMF’s acting Executive Director, Jessie Posilkin, also said during a recent public appearance that the TMF has delivered about $12 billion in estimated cost savings and efficiency gains.
“We appreciate the Administration’s commitment to a more efficient, technology-enabled government,” said the coalition’s letter, which noted that the administration’s fiscal year 2027 budget request assumed reauthorization of the TMF – and that officials have said not extending authorization would reduce projected savings and delay critical cybersecurity and modernization efforts.
“Interrupting the fund at the start of fiscal year 2027 would therefore put at risk the very period in which the bulk of its expected return to taxpayers is projected to materialize, while stalling agency modernization and cybersecurity projects already underway,” the letter said.