New Federal Technology Bills Aim to Streamline Agency Operations while GAO Questions their Effectiveness

The House has recently passed two bills aimed at improving federal agency technology and service delivery. HR-5527, which reauthorizes the Technology Modernization Fund through 2033, focuses on replacing outdated federal agency IT systems. The bill includes provisions for agencies to create a “federal legacy IT inventory” to track results, report on their ability to repay the fund, and reimburse the fund for awards and administrative fees. The TMF provides upfront funding for agencies to replace legacy systems with the expectation that they will repay the fund out of cost savings.

Although the TMF’s goals are admirable, a report from the GAO last year found that only eight out of 37 funded projects have shown measurable savings. However, most projects are still in progress, leaving room for potential future savings. Despite this, the bipartisan bill passed on a voice vote, signaling broad support for the reauthorization of the TMF. In addition to this bill, HR-5887 was also passed by the House which requires the OMB to designate a senior official as the federal government service delivery leader to coordinate efforts to improve service delivery across agencies.

In other news related to federal employees, the cost-of-living adjustment for federal employees has risen to 2.2 percent. The Office of Government Ethics has finalized changes to federal employee ethics rules and there is growing concern about limiting offsite work and reducing office space among employees. There has also been criticism directed towards VA executives who received bonuses of up to $100,000 for skills incentives despite their role in providing services related