Federal tech modernisation efforts face uncertainty as key funding program nears deadline

With the Technology Modernisation Fund (TMF) set to hit its December 12 deadline, officials have warned that ongoing federal tech modernisation plans could stall without immediate congressional action.

The General Services Administration (GSA), which oversees the TMF, has remained notably quiet throughout the second Trump administration, even as federal tech modernisation work continues behind the scenes. 

However, with the deadline nearing, both GSA and the Office of Management and Budget have stepped up pressure on lawmakers to safeguard the fund, a central pillar of federal tech modernisation since 2017.

If the programme isn’t reauthorised, GSA will retain control of existing projects but will be barred from greenlighting new ones, effectively freezing nearly $160 million earmarked for federal tech modernisation. 

Notably, the TMF was created to help agencies escape the long-standing cycle of outdated systems and annual funding delays, a structure that often leaves government relying on decades-old, insecure technology.

Supporters have insisted that the fund remains one of the government’s most effective tools for strengthening cybersecurity and upgrading critical systems. 

Yet political skepticism over its repayment model continues to threaten its future.