The House Appropriations Financial Services and General Government (FSGG) Subcommittee advanced its fiscal year (FY) 2027 appropriations bill on Friday, including $5 million for the Technology Modernization Fund (TMF) and millions in appropriations for cybersecurity improvements.
In the FY 2027 FSGG bill, House appropriators included $5 million in total funding for the TMF “to remain available until expended.”
The TMF – overseen by the General Services Administration (GSA) – was created in 2017 under the Modernizing Government Technology Act to fund federal civilian agencies’ technology modernization projects.
House appropriators’ draft differs slightly from the White House’s FY 2027 budget proposal. The White House asked for no direct appropriation for the TMF and instead recommended relying on budget transfer authority to fund the program. That approach would allow GSA – with the Office of Management and Budget’s approval – to collect up to $100 million in unobligated appropriations across federal agencies to fund the TMF.
The House, according to its bill, is instead considering funding the TMF directly. The $5 million in funding – if enacted – would match what Congress ultimately approved for FY 2026 TMF appropriations.
Beyond TMF-related funding, the 2027 FSGG bill takes a largely decentralized approach to IT funding. It expands agencies’ ability to redirect existing funds toward IT modernization, allowing up to 5% of certain appropriations to be transferred into IT working capital funds.
At the same time, the bill continues support for shared digital services through GSA, with the Federal Citizen Services Fund authorized to finance interagency IT projects and improvements to online government services, up to $150 million.
The measure channels funding into data and analytics capabilities, particularly for Treasury systems used in financial analysis and data processing. The bill does not include major new artificial intelligence funding, but it still enables agencies to incorporate advanced analytics and emerging technologies over time through broader program funding.
More specific funding under the FY 2027 FSGG includes $59 million for the Treasury Department’s Cybersecurity Enhancement Account, which is intended to provide enterprise-wide cyber defense upgrades. That funding includes $6 million carved out for chief information officer oversight.
The IRS would receive $3.6 billion for its operations support account, which includes funding for core IT systems, cybersecurity, and telecommunications infrastructure. The bill also folds new oversight requirements into the proposed IRS funding, such as mandatory quarterly reporting on IT projects. The agency would also receive $35 million for digital forensics and enforcement-related technology if the FSGG bill is adopted.
Outside of funding, the FSGG bill aims to strengthen IT governance by mandating that agency chief information officers participate in technology budget decisions. It also funds government-wide policy work to support IT management, procurement, and coordination across agencies through GSA.
A full House appropriations markup of the bill is scheduled for Tuesday and Wednesday.