Trump in his new budget request proposes to fund TMF by collecting unobligated balances of expired discretionary funds
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Trump Admin Proposes New Funding Mechanism for Technology Modernization Fund

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According to the General Services Administration’s fiscal year 2026 congressional justification, the president’s FY 2026 budget request includes a governmentwide provision that would permit GSA, with the Office of Management and Budget’s approval, to fund the Technology Modernization Fund by collecting unobligated balances of expired discretionary funds from other government agencies.

“This proposal offers a dual benefit: it would increase the amount of funding available in the TMF to make continued investments while simultaneously alleviating the burden on the Financial Services and General Government Appropriations Subcommittee,” GSA said in the document.

According to the document, the provision would provide TMF with the necessary funds to help federal agencies modernize high-priority systems, advance artificial intelligence adoption, support cross-government collaboration, improve cybersecurity, enhance public-facing digital services and advance shared services.

Advancing Federal Digital Transformation Through TMF

According to the GSA document, TMF has invested over $1.07 billion in 69 modernization projects and systems upgrades across 34 federal agencies. It has received and assessed more than 290 proposals totaling approximately $4.5 billion in funding demand.

TMF investments have enabled agencies to see dramatic results. These include enabling access to digital service records for millions of veterans and families through the National Archives and Records Administration and strengthening data security and privacy protections for 70 million retirement and disability beneficiaries and their families served by the Social Security Administration.