(3)’’ and inserting ‘‘paragraph 
(3)(A)(i)’’; and 
(bb) by striking ‘‘paragraph 
(6)’’ and inserting ‘‘this para-
graph’’; 
(E) in paragraph (7)— 
(i) in subparagraph (A)(i)— 
(I) by inserting ‘‘the written 
agreement entered into under para-
graph (6),’’ after ‘‘description of the 
project,’’; and 
(II) by inserting ‘‘(including doc-
umented market research into commer-
cial products and services)’’ after 
‘‘used’’; 
(ii) in subparagraph (B)— 
(I) in clause (i)— 
(aa) 
by 
striking 
‘‘estab-
lishing’’; and 
(bb) by striking ‘‘the cost 
savings 
associated 
with 
the 
projects funded both annually and 
over the life of the acquired prod-
ucts and services by the Fund;’’ 
and inserting the following: ‘‘the 
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amount repaid to the Fund in ac-
cordance with the terms estab-
lished in the written agreements 
described in paragraph (6);’’; 
(II) in clause (ii)— 
(aa) by striking ‘‘reliability 
of the cost savings’’ and inserting 
‘‘total cost savings’’; and 
(bb) by striking the semicolon 
and inserting ‘‘; and’’; and 
(III) in clause (iii), by striking ‘‘; 
and’’ and inserting a period; and 
(IV) by striking clause (iv); 
(2) in subsection (c)(2)— 
(A) in subparagraph (A)— 
(i) in clause (ii), by striking ‘‘the 
greatest Governmentwide impact; and’’ and 
inserting the following: ‘‘the greatest impact 
on modernizing, retiring, or replacing Fed-
eral legacy information technology systems; 
and’’; 
(ii) 
by 
redesignating 
clauses 
(i) 
through (iii) as clauses (ii) through (iv), re-
spectively; and 
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(iii) by inserting before clause (ii), as 
so redesignated, the following new clause: 
‘‘(i) the ability for the head of the 
agency to ensure repayment of funds trans-
ferred from the Fund to the head of the 
agency, in accordance with subsection (b);’’; 
(B) in subparagraph (D), by striking ‘‘to 
improve or replace multiple information tech-
nology systems’’ and inserting the following: ‘‘to 
modernize, retire, or replace legacy information 
technology 
systems 
under 
subsection 
(b)(3)(A)(i)’’; and 
(C) in subparagraph (F), by inserting after 
‘‘subsection (b)(6)’’ the following: ‘‘or the identi-
fication of fraudulent or misleading statements 
about the project (including fraudulent state-
ments about technical design, the business case, 
or program management with respect to the 
project) in the application or proposal for 
amounts from the Fund for the project’’; and 
(D) in subparagraph (G), by inserting after 
‘‘operating costs of the Fund’’ the following: ‘‘to 
ensure total amounts in the Fund are no less 
than the amounts needed to keep the Fund oper-
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ational until the Fund sunsets pursuant to sub-
section (g)(1)’’; 
(3) in subsection (c)— 
(A) in paragraph (5)— 
(i) in subparagraph (B) by striking 
the period at the end and inserting ‘‘; and’’; 
and 
(ii) by inserting after subparagraph 
(B) the following; 
‘‘(C) a senior official from the Cybersecurity 
and Infrastructure Security Agency of the De-
partment of Homeland Security, appointed by 
the Director of the Cybersecurity and Infrastruc-
ture Security Agency, with the approval of the 
Director of the Office of Management and Budg-
et.’’; 
(B) in paragraph (6)(A)— 
(i) by striking ‘‘shall be—’’ and insert-
ing ‘‘shall be 4 employees of the Federal 
Government primarily having technical ex-
pertise in information technology develop-
ment, financial management, cybersecurity 
and privacy, and acquisition, appointed by 
the Director.’’; and 
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(ii) by striking clauses (i) and (ii); 
and 
(4) in subsection (d)(2)— 
(A) in subparagraph (A), by striking ‘‘sub-
section (b)(3)(A) and for products, services, and 
acquisition vehicles funded under subsection 
(b)(3)(B)’’ and inserting ‘‘subsection (b)(3)’’; and 
(B) in subparagraph (C), by inserting after 
‘‘and reduce waste’’ the following: ‘‘and ensure 
total amounts in the Fund are no less than the 
amounts needed to keep the Fund operational 
until the Fund sunsets pursuant to subsection 
(g)(1)’’; 
(5) by redesignating subsections (e) and (f) as 
subsections (f) and (g), respectively; 
(6) by inserting after subsection (d) the following 
new subsection: 
‘‘(e) RESPONSIBILITIES OF THE FEDERAL CHIEF IN-
FORMATION OFFICER; AGENCY CHIEF INFORMATION OFFI-
CERS.— 
‘‘(1) AGENCY INVENTORY.—An agency Chief In-
formation Officer, in coordination with stakeholders 
and other agency officials, shall provide to the Fed-
eral Chief Information Officer— 
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‘‘(A) on or before the first September 30 
that occurs after the date of the enactment of the 
Modernizing Government Technology Reform Act 
of 2023, a list of high-risk legacy information 
technology systems used, operated, or maintained 
by the agency, in accordance with the guidance 
issued under paragraph (4); and 
‘‘(B) on or before September 30 of each year 
after the first year in which the list is provided 
under subparagraph (A), any updates to such 
list. 
‘‘(2) LEGACY FEDERAL IT INVENTORY.—The Fed-
eral Chief Information Officer shall— 
‘‘(A) on or before the first December 30 that 
occurs after the date of the enactment of the Mod-
ernizing Government Technology Reform Act of 
2023, compile a Legacy Federal IT Inventory on 
the basis of the each list provided by an agency 
Chief Information Officers under paragraph 
(1)(A) that includes information about each 
high-risk legacy information technology system 
used, operated, or maintained by an agency; and 
‘‘(B) on or before December 30 each year 
after the year in which the Legacy Federal IT 
Inventory is compiled, update such Inventory on 
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‘‘(B) REPORT
TO
CONGRESS.—Not later 
than 14 days after the date on which the Federal 
Chief Information Officer compiles the list re-
quired by subparagraph (A), or updates such 
list, the Director shall submit to the Committee 
on Oversight and Accountability of the House of 
Representatives, the Committee on Homeland Se-
curity and Governmental Affairs of the Senate, 
and the Comptroller General of the United 
States, a report (which may include a classified 
annex) containing— 
‘‘(i) such list (including any update 
made to such list under subparagraph 
(A)(ii)); and 
‘‘(ii) each list provided by an agency 
Chief Information Officer under paragraph 
(1)(A) (including any update made to any 
such list under paragraph (1)(B)). 
‘‘(4) GUIDANCE.— 
‘‘(A) IN
GENERAL.—Not later than 180 
days after enactment of this Act, the Director 
shall issue guidance on implementing the re-
quirements of this subsection that shall, at a 
minimum— 
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‘‘(i) prescribe an appropriate format 
for list to be provided under paragraph 
(1)(A); 
‘‘(ii) prescribe the information to be 
included in the Legacy Federal IT Inven-
tory required by paragraph (2); 
‘‘(iii) provide guidance on how an 
agency Chief Information Officer should 
identify high-risk legacy information tech-
nology systems that, at least, requires agen-
cy Chief Information Officers, in coordina-
tion with other agency stakeholders, to iden-
tify as a high risk legacy information tech-
nology system any outdated or obsolete sys-
tem of information technology that is crit-
ical to the agency such that the loss or deg-
radation of the system would create a secu-
rity, operational, or privacy risk to the 
agency or would otherwise impact the abil-
ity of the agency to perform the mission of 
the agency, effectively deliver programs, or 
conduct business; and 
‘‘(iv) provide guidance on how existing 
reporting structures can be used to submit 
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the Legacy Federal IT inventory required 
by paragraph (2). 
‘‘(B) UPDATES.—The Director may update 
the guidance issued under subparagraph (A) as 
the Director determines necessary. 
‘‘(5) DEFINITIONS.—In this subsection: 
‘‘(A) AGENCY
CHIEF
INFORMATION
OFFI-
CER.—The term ‘agency Chief Information Offi-
cer’ means a Chief Information Officer des-
ignated under section 3506(a)(2) of title 44, 
United States Code. 
‘‘(B) FEDERAL CHIEF INFORMATION OFFI-
CER.—The term ‘Federal Chief Information Offi-
cer’ means the Administrator of the Office of 
Electronic Government.’’; and 
(7) in subsection (g)(1), as so redesignated, by 
striking ‘‘On and after the date that is 2 years after 
the date on which the Comptroller General of the 
United States issues the third report required under 
subsection (b)(7)(B),’’ and inserting ‘‘After December 
31, 2030,’’. 
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Union Calendar No. 326 
118TH CONGRESS 
2D SESSION 
H. R. 5527 
[Report No. 118–397] 
A BILL 
To amend section 1078 of the National Defense 
Authorization Act for Fiscal Year 2018 to in-
crease the effectiveness of the Technology Mod-
ernization Fund, and for other purposes. 
FEBRUARY 23, 2024 
Reported with an amendment, committed to the Com-
mittee of the Whole House on the State of the Union, 
and ordered to be printed 
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