The Technology Modernization Fund has revealed that it is implementing a strategic adjustment to its funding model by prioritizing full repayment for new investments.
The U.S. General Services Administration said Friday TMF decided to change its approach to funding to ensure sustained financial support for critical modernization projects across the federal government.
IT Modernization Through Enhanced Repayment Structure
TMF has empowered federal agencies with upfront funding and specialized advisory services since 2018. This enables agencies to rapidly develop and deploy transformative IT initiatives with enhanced accountability. This funding framework bridges the gap between finance and IT teams, resulting in decreased duplicated expenditure and development of shared resources for the whole federal enterprise. To date, TMF has invested more than $1.05 billion in 69 projects spanning 34 federal agencies.
“Our digital infrastructure is fundamental to everything the government does,” said Gregory Barbaccia, federal chief information officer and 2025 Wash100 Award winner. “This shift transforms a finite appropriation to an enduring fixture of our modernization strategy, creating lasting institutional capacity to address technology debt,” added the TMF board chair.
GSA Acting Administrator Stephen Ehikian, said, “By ensuring full repayment of our investments, the TMF sends a clear message to federal agencies: focus on high-impact, high-return modernization efforts. These investments not only replace outdated systems but also streamline critical operations, ultimately improving services for government employees and delivering greater value to taxpayers.”
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