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Modernizing Government Technology Act

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Modernizing Government Technology Act
NameModernizing Government Technology Act
Enacted2017
CitationDivision A, Title X of the Consolidated Appropriations Act, 2018
Enacted by115th United States Congress
Signed byDonald Trump
Effective date2018
Related legislationFITARA, CIO Act of 1994, Federal Information Security Modernization Act of 2014

Modernizing Government Technology Act

The Modernizing Government Technology Act established a framework for federal agencies to retire legacy systems and adopt cloud computing, cybersecurity, and information technology products and services. It created financing mechanisms and governance structures to address technical debt across executive branch agencies overseen by the Office of Management and Budget and influenced oversight by the Government Accountability Office, Congressional Budget Office, and House Committee on Oversight and Reform.

Background and Legislative History

The Act emerged amid concerns raised by Office of Management and Budget reports, testimony before the House Committee on Oversight and Reform, and audits from the Government Accountability Office highlighting risks associated with legacy mainframes at agencies such as the Department of Veterans Affairs, the Social Security Administration, and the Department of Homeland Security. Policymakers including members of the Senate Committee on Homeland Security and Governmental Affairs and the House Committee on Homeland Security introduced proposals paralleling earlier statutes like the CIO Act of 1994 and the Federal Information Security Modernization Act of 2014. Legislative negotiations in the 115th United States Congress produced the language that was folded into the Consolidated Appropriations Act, 2018, with the bill signed by Donald Trump after deliberations involving the Office of Personnel Management and the General Services Administration.

Provisions and Requirements

The Act authorized agency-level capital investment accounts and a central government-wide fund administered by the Office of Management and Budget and the Chief Information Officer Council. It required agency chief information officers, such as those at the Department of Defense and the Department of Health and Human Services, to submit modernization plans and to meet reporting requirements familiar from FITARA scorecards used by the House Committee on Oversight and Reform and the Government Accountability Office. The law set parameters for eligible activities including migrations to cloud computing provided by vendors like Amazon Web Services, Microsoft Azure, and Google Cloud Platform as used by some components of the Department of Justice. It also imposed procedural checks involving the Office of Management and Budget, the Congressional Budget Office, and periodic reviews linked to existing policy instruments from the National Institute of Standards and Technology and the Federal Chief Information Officer.

Implementation and Administration

Implementation relied on agencies coordinating through the Chief Information Officer Council and executing portfolios overseen by agency Chief Information Officers reporting to the Office of Management and Budget. The General Services Administration and the Office of Personnel Management played roles in procurement and workforce planning, while the Department of Commerce and the National Institute of Standards and Technology provided guidance on security frameworks. The Government Accountability Office issued audits and recommendations, and the Congressional Budget Office estimated budgetary effects. Interagency working groups drew participation from the Department of Defense, Department of Veterans Affairs, Social Security Administration, National Aeronautics and Space Administration, and the Department of Health and Human Services.

Funding and Budgetary Impact

The Act established a Government-wide Modernization Fund administered by the Office of Management and Budget with appropriations and transfers subject to Congress oversight through the House Appropriations Committee and the Senate Appropriations Committee. The Congressional Budget Office provided estimates of potential savings from reduced maintenance on legacy systems at agencies including the Internal Revenue Service and the Department of Homeland Security but noted uncertain long-term returns. Budget scoring interactions with statutes like the Antideficiency Act and the Congressional Budget and Impoundment Control Act of 1974 influenced congressional appetite for multi-year spending authorities. The Government Accountability Office tracked obligational trends, and annual budget submissions from the Office of Management and Budget reflected centralized requests.

Impact on Federal IT Modernization

The Act catalyzed migrations to cloud computing and adoption of modern cybersecurity practices across agencies such as the Department of Veterans Affairs, the Social Security Administration, and the Department of Defense. It reinforced initiatives led by the Federal Chief Information Officer and complemented performance metrics under FITARA. Contractors including Amazon Web Services, Microsoft Corporation, Google LLC, Oracle Corporation, and IBM expanded federal offerings, while systems integrators such as Deloitte, Accenture, and Leidos supported transitions. The General Services Administration's procurement vehicles and the Defense Information Systems Agency provided technical pathways for migration. The Government Accountability Office documented case studies and outcomes, and agencies reported variable improvements in agility, security, and cost management.

Criticisms and Challenges

Critics in the Government Accountability Office, think tanks like the Brookings Institution and the Heritage Foundation, and members of the House Committee on Oversight and Reform argued that the Act's fund was insufficient to overcome entrenched technical debt at the Department of Veterans Affairs and the Internal Revenue Service. Concerns cited by the Congressional Budget Office and privacy advocates at organizations such as the Electronic Frontier Foundation included procurement hurdles, workforce shortages described by the Office of Personnel Management, and cybersecurity risks highlighted by the National Institute of Standards and Technology and the Department of Homeland Security. Implementation delays involved coordination challenges among the Chief Information Officer Council, the General Services Administration, and agency CIOs, while auditors at the Government Accountability Office called for stronger performance metrics and congressional oversight via the House Appropriations Committee and the Senate Homeland Security and Governmental Affairs Committee.

The Act operates alongside statutes and policies such as the CIO Act of 1994, Federal Information Security Modernization Act of 2014, FITARA, the John S. McCain National Defense Authorization Act for Fiscal Year 2019 provisions on acquisition reform, and guidance from the National Institute of Standards and Technology and the Office of Management and Budget. It intersects with procurement reforms championed by the General Services Administration and workforce initiatives advanced by the Office of Personnel Management and influences oversight by the Government Accountability Office and Congress committees including the House Committee on Oversight and Reform and the Senate Committee on Homeland Security and Governmental Affairs.

Category:United States federal legislation