Federal Agency Information Technology Modernization Act of 2027

SECTION 1. SHORT TITLE.

This Act may be cited as the “Federal Agency Information Technology Modernization Act of 2027.”

SECTION 2. CONGRESSIONAL FINDINGS.

Congress finds the following:
1. Federal agencies rely on information technology systems to deliver essential services, safeguard sensitive information, and administer programs that affect millions of Americans each year.
2. The Federal Government spends over $100 billion annually on information technology, and the Government Accountability Office (GAO) has reported that the majority of such spending is used to operate and maintain existing legacy systems rather than to modernize or replace them.
3. GAO has identified a subset of critical Federal legacy systems that cost hundreds of millions of dollars annually to operate and maintain, many of which rely on outdated software, hardware, or programming languages that increase operational risk and cybersecurity exposure.
4. Outdated information technology systems contribute to delayed service delivery, increased administrative burdens, higher error rates, and reduced public trust in government institutions.
5. Federal benefit and service programs administered through aging systems—including disability determinations, veterans’ benefits, nutrition assistance, and immigration processing—have experienced processing delays and inefficiencies that modernization efforts can materially improve.
6. Congress previously established the Technology Modernization Fund under section 1078 of the National Defense Authorization Act for Fiscal Year 2018 to support Federal information technology modernization, but additional statutory clarity, performance guardrails, and accountability mechanisms are necessary to ensure consistent results across agencies.
7. Modernization efforts that align with existing Federal information technology governance laws, cybersecurity requirements, and digital service standards can improve service delivery, reduce long-term operating costs, and strengthen program integrity while protecting privacy and civil liberties.

SECTION 3. DEFINITIONS.

In this Act:

1. Secretary.—The term “Secretary” means the Director of the Office of Management and Budget.

2. Agency.—The term “agency” has the meaning given the term in section 3502 of title 44, United States Code.

3. Technology Modernization Fund; TMF.—The terms “Technology Modernization Fund” and “TMF” mean the fund established under section 1078 of the National Defense Authorization Act for Fiscal Year 2018.

4. Legacy System.—The term “legacy system” means an information technology system that—

(A) is more than 10 years old;
(B) relies on outdated or unsupported hardware, software, or programming languages; or
(C) has been identified by GAO, OMB, or the agency Chief Information Officer as posing elevated operational, cybersecurity, or cost risk.

5. Modernization Project.—The term “modernization project” means an initiative to replace, retire, consolidate, or substantially upgrade a legacy system in order to improve service delivery, security, efficiency, or cost-effectiveness.
   

SECTION 4. AGENCY MODERNIZATION REQUIREMENTS.

(a) Modernization Plans Required.—Not later than 180 days after the date of enactment of this Act, each covered agency shall submit to the Director of the Office of Management and Budget a modernization plan that—
1. identifies the agency’s highest-risk legacy systems;

2. prioritizes systems based on cost, mission criticality, cybersecurity risk, and service delivery impact;
3. establishes clear milestones, baselines, and timelines for modernization projects;
4. is approved in writing by the agency Chief Information Officer, consistent with the Federal Information Technology Acquisition Reform Act (FITARA); and
5. describes how proposed projects align with applicable cybersecurity, digital service, and privacy requirements.

(b) Baseline Measurements.—For purposes of this Act, baseline measurements shall be calculated using the agency’s average performance and operating cost data from the fiscal year immediately preceding submission of the modernization plan.

SECTION 5. PERFORMANCE TARGETS AND ACCOUNTABILITY.

(a) Performance Targets.—Each modernization plan shall include measurable performance targets, which may include—

1. reductions in median processing times for identified services or benefits;
2. reductions in operations and maintenance costs for modernized systems;
3. improvements in system availability, reliability, or cybersecurity posture; and
4. reductions in administrative burden for program beneficiaries or agency personnel.
(b) Target Levels.—Agencies shall establish targets that, where practicable—
1. achieve reductions of not less than 20 percent in identified service delivery timelines; and
2. achieve reductions of not less than 30 percent in operations and maintenance costs for systems replaced or substantially modernized.
(c) Waivers.—The Director of the Office of Management and Budget may approve a limited waiver of target levels under subsection (b) only upon a written determination that—
1. compliance is not practicable due to mission-critical, security, or procurement constraints; and
2. the waiver and justification are provided to the Government Accountability Office and made publicly available.

SECTION 6. TECHNOLOGY MODERNIZATION FUND PRIORITIES.

In carrying out section 1078 of the National Defense Authorization Act for Fiscal Year 2018, the Technology Modernization Fund Board shall—
1. prioritize funding for modernization projects that replace or retire high-risk legacy systems;
2. require each funded project to demonstrate alignment with—
(A) FITARA governance requirements;
(B) the Federal Information Security Modernization Act of 2014 and applicable National Institute of Standards and Technology guidance; and
(C) Office of Management and Budget Memorandum M–22–09 relating to zero trust cybersecurity principles;
3. condition funding on clearly defined milestones, verified cost savings, and performance outcomes;
4. include repayment or clawback provisions, as appropriate, as a condition of funding; and
5. ensure that funded projects advance digital service requirements under the 21st Century Integrated Digital Experience Act.

SECTION 7. PAPERWORK REDUCTION AND PROGRAM INTEGRITY.

(a) Digital Service Improvements.—Agencies shall use modernization efforts supported under this Act to reduce reliance on paper-based processes and advance digital-first service delivery, consistent with applicable law.
(b) Fraud Prevention Tools.—Agencies may deploy data analytics or artificial intelligence tools to identify waste, fraud, or abuse, provided that—
1. such tools are used in compliance with applicable privacy, civil rights, and data protection laws;
. adverse determinations affecting benefits or services are subject to human review; and

3. agencies maintain documentation of data inputs, decision logic, audit logs, and bias testing associated with such tools.

SECTION 8. TRANSPARENCY AND REPORTING.

(a) Public Reporting.—The Director of the Office of Management and Budget shall maintain a publicly accessible dashboard identifying, for each modernization project funded under this Act or the Technology Modernization Fund—

1. project objectives and milestones;
2. funding amounts and expenditures;
3. performance against established targets; and
4. documented cost savings or service delivery improvements.
(b) Annual Report to Congress.—Not later than 1 year after enactment of this Act, and annually thereafter, the Director shall submit a report to Congress summarizing agency progress, challenges, and recommendations for further legislative action.

SECTION 9. RULE OF CONSTRUCTION.

Nothing in this Act shall be construed to limit or supersede authorities under existing law, including the Federal Information Technology Acquisition Reform Act, the Federal Information Security Modernization Act of 2014, the 21st Century Integrated Digital Experience Act, or section 1078 of the National Defense Authorization Act for Fiscal Year 2018, except to the extent expressly provided herein. In the event of a conflict with an existing provision of law, this Act shall control to the extent of the conflict.

SECTION 10. EFFECTIVE DATE.

This Act shall take effect on the date of enactment.

Legislative Proposal Disclaimer


The policies and legislative proposals presented on this website reflect the goals, priorities, and policy positions of Oxford C.F. Nordberg as a candidate for public office.
All proposals are conceptual working drafts intended to communicate policy direction and legislative intent. They are subject to revision through the legislative process, including legal review, constitutional constraints, public input, committee consideration, amendment, and approval by the appropriate legislative bodies.
Nothing on this website should be interpreted as enacted law, legal advice, or a guarantee of legislative outcome.
Any references to budgets, timelines, performance targets, enforcement mechanisms, or anticipated outcomes are illustrative only and are provided to explain policy objectives—not to represent final statutory language or binding commitments.

Legislative Proposal Disclaimer


The policies and legislative proposals presented on this website reflect the goals, priorities, and policy positions of Oxford C.F. Nordberg as a candidate for public office.
All proposals are conceptual working drafts intended to communicate policy direction and legislative intent. They are subject to revision through the legislative process, including legal review, constitutional constraints, public input, committee consideration, amendment, and approval by the appropriate legislative bodies.
Nothing on this website should be interpreted as enacted law, legal advice, or a guarantee of legislative outcome.
Any references to budgets, timelines, performance targets, enforcement mechanisms, or anticipated outcomes are illustrative only and are provided to explain policy objectives—not to represent final statutory language or binding commitments.