Federal Manager's Daily Report

OMB has issued guidance on carrying out the Modernizing Government Technology Act, which was incorporated into last year’s defense budget law and established a central Technology Modernization Fund that agencies can draw on to improve or replace existing IT systems, as well as IT Working Funds in CFO Act agencies.

The main goal of the new law was to redirect IT spending away from incremental steps that are all an individual agency budget may allow; an estimated 80 percent of the $80 billion annual government IT spending goes toward maintaining legacy systems, many of which are long out of date and expensive to keep up.


“The MGT Act will allow agencies to invest in modem technology solutions to improve service delivery to the public, secure sensitive systems and data, and save taxpayer dollars,” said OMB memo M-18-12.

The guidance covers topics including the initial process for submitting project proposals to the board overseeing the central fund; resources on topics such as disbursement and repayment process for that fund; and guidance to CFO Act agencies  on funding and administering their own working funds.