H.R. 2985 — Modernizing Government Technology Reform Act

This section revises statutory provisions governing the Technology Modernization Fund (TMF)—which finances federal agency efforts to modernize information technology systems, enhance cybersecurity, and improve efficiency—as follows: (1) In subsection (b), regarding fund uses and administration: (A) Revises paragraph (3) to limit transfers of fund amounts to agency heads for information technology acquisition, procurement, operation, or development that modernizes, retires, or replaces legacy systems; enhances cybersecurity and privacy; improves long-term efficiency; or supports agency missions and public services (and to provide related services or work); restricts funding to programs, projects, or activities (or increases therein) not denied or restricted by Congress; and requires reimbursements sufficient to maintain fund solvency until its sunset under subsection (g)(1). Adds paragraph (3)(B) to require suspension or termination of funding for projects involving agency head fraud or misleading statements. (B) In paragraph (5), updates reporting cross-references from former paragraph (3)(C) to new paragraph (3)(A)(ii); eliminates requirements for consistency with congressional reprogramming laws or guidelines; and revises solvency standards to ensure amounts sufficient for operations until sunset. (C) In paragraph (6), requires written reimbursement agreements prior to transfers under paragraph (3)(A)(i), including terms ensuring fund solvency until sunset and full reimbursement for services under paragraph (3)(A)(ii)(I); mandates incremental transfers tied to metric-based milestones and rapid development processes (absent compelling circumstances); and updates related cross-references. (D) In paragraph (7), expands agency reporting to the Director to include the written agreement under paragraph (6) and documented market research on commercial products and services; revises semiannual reports to the Board to emphasize amounts repaid per paragraph (6) agreements (instead of cost savings), total cost savings (instead of reliability thereof), and eliminates one reporting element. (2) In subsection (c)(2)(A), revises board selection criteria for fund projects to prioritize those with the greatest impact on modernizing, retiring, or replacing federal legacy information technology systems (instead of greatest governmentwide impact).