I 
119TH CONGRESS 
1ST SESSION H. R. 2985 
To amend section 1078 of the National Defense Authorization Act for Fiscal 
Year 2018 to increase the effectiveness of the Technology Modernization 
Fund, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 24, 2025 
Ms. MACE (for herself and Mr. CONNOLLY) introduced the following bill; 
which was referred to the Committee on Oversight and Government Reform 
A BILL 
To amend section 1078 of the National Defense Authoriza-
tion Act for Fiscal Year 2018 to increase the effective-
ness of the Technology Modernization Fund, and for 
other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Modernizing Govern-
ment Technology Reform Act’’. 
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SEC. 2. REALIGNING USE OF FUNDS WITH ORIGINAL CON-
GRESSIONAL INTENT. 
Section 1078 of the National Defense Authorization 
Act for Fiscal Year 2018 (Public Law 115–91; 40 U.S.C. 
11301 note) is amended— 
(1) in subsection (b)— 
(A) by amending paragraph (3) to read as 
follows: 
‘‘(3) USE OF FUNDS.— 
‘‘(A) IN
GENERAL.—The Administrator 
shall, in accordance with recommendations from 
the Board, use amounts in the Fund for the fol-
lowing: 
‘‘(i) To transfer such amounts, to re-
main available until expended, to the head 
of an agency for the acquisition, procure-
ment, and operation of information tech-
nology, or the development of information 
technology when more efficient and cost ef-
fective, to— 
‘‘(I) modernize, retire, or replace 
legacy information technology systems 
used by the agency; 
‘‘(II) enhance cybersecurity and 
privacy at the agency; 
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‘‘(III) improve long-term effi-
ciency and effectiveness of agency in-
formation technology; or 
‘‘(IV) improve the ability of the 
agency to perform the mission of the 
agency and deliver services to the 
public. 
‘‘(ii) To provide services or work per-
formed in support of— 
‘‘(I) the activities described in 
clause (i); and 
‘‘(II) the Board and the Director 
in carrying out the responsibilities de-
scribed in subsection (c)(2). 
‘‘(iii) To fund only programs, projects, 
or activities, or to fund increases for any 
programs, projects, or activities that have 
not been denied or restricted by Congress. 
‘‘(iv) To transfer such amounts only 
for programs, projects, or activities that 
will be reimbursed to the Fund to the ex-
tent necessary to ensure total amounts in 
the Fund are no less than the amounts 
needed to keep the Fund operational until 
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the Fund sunsets pursuant to subsection 
(g)(1). 
‘‘(B) TERMINATION
OR
SUSPENSION
OF 
FUNDS.—The Administrator shall, in accord-
ance with recommendations from the Board, 
suspend or terminate funding for any project 
with respect to which the head of an agency 
provided fraudulent or misleading statements 
about such 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 such project.’’; 
(B) in paragraph (5)— 
(i) in subparagraph (A)— 
(I) in clause (i)— 
(aa) by striking ‘‘or (B)’’; 
and 
(bb) by striking ‘‘(3)(C)’’ 
and inserting ‘‘(3)(A)(ii)’’; and 
(II) in clause (ii), by striking ‘‘, 
consistent with any applicable re-
programming law or guidelines of the 
Committees on Appropriations of the 
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Senate and the House of Representa-
tives’’; and 
(ii) in subparagraph (B)(i)— 
(I) 
by 
striking 
‘‘paragraph 
(3)(C)’’ and inserting ‘‘paragraph 
(3)(A)(ii)’’; and 
(II) by striking ‘‘the solvency of 
the Fund, including operating ex-
penses’’ and inserting the following: 
‘‘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)’’; 
(C) in paragraph (6)— 
(i) in subparagraph (A)— 
(I) in the matter before clause 
(i), by striking ‘‘subparagraphs (A) 
and (B) of paragraph (3)’’ and insert-
ing 
the 
following: 
‘‘paragraph 
(3)(A)(i) and before any services or 
work are provided under paragraph 
(3)(A)(ii)(I)’’; 
(II) in clause (i)— 
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(aa) by striking ‘‘unless ap-
proved by the Director’’; and 
(bb) by striking ‘‘; and’’ and 
inserting a semicolon; 
(III) by redesignating clause (ii) 
as clause (iv); and 
(IV) by inserting after clause (i) 
the following new clauses: 
‘‘(ii) which shall include terms of re-
payment that require the head of the agen-
cy to reimburse the Fund for funds trans-
ferred under paragraph (3)(A)(i) at a level 
that ensures 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); 
‘‘(iii) which shall include terms of re-
payment that require the head of the agen-
cy to fully reimburse the Fund for any 
services or work provided under paragraph 
(3)(A)(ii) in direct support of the project; 
and’’; and 
(ii) in subparagraph (B)— 
(I) by striking clause (i) and in-
serting the following: 
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‘‘(i) for any funds transferred to an 
agency under paragraph (3)(A)(i), in the 
absence of compelling circumstances docu-
mented by the Administrator at the time of 
transfer, that such funds shall be trans-
ferred only— 
‘‘(I) on an incremental basis, tied 
to metric-based development mile-
stones achieved by the agency through 
the use of rapid, iterative, develop-
ment processes; and 
‘‘(II) after the head of the agency 
has provided the Director any infor-
mation the Director is required to re-
port pursuant to paragraph (7)(A)(i); 
and’’; and 
(II) in clause (ii)— 
(aa) by striking ‘‘subpara-
graphs (A) and (B) of paragraph 
(3)’’ and inserting ‘‘paragraph 
(3)(A)(i)’’; and 
(bb) by striking ‘‘paragraph 
(6)’’ and inserting ‘‘this para-
graph’’; 
(D) in paragraph (7)— 
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(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 com-
mercial 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 
products and services by the 
Fund;’’ and inserting the fol-
lowing: ‘‘the amount repaid to 
the Fund in accordance with the 
terms established in the written 
agreements described in para-
graph (6);’’; 
(II) in clause (ii)— 
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(aa) by striking ‘‘reliability 
of the cost savings’’ and inserting 
‘‘total cost savings’’; and 
(bb) by striking the semi-
colon 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 im-
pact on modernizing, retiring, or replacing 
Federal legacy information technology sys-
tems; and’’; 
(ii) 
by 
redesignating 
clauses 
(i) 
through (iii) as clauses (ii) through (iv), 
respectively; and 
(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 
transferred from the Fund to the head of 
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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 iden-
tification of fraudulent or misleading state-
ments about the project (including fraudulent 
statements 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 fol-
lowing: ‘‘to 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)’’; 
(3) in subsection (d)(2)— 
(A) in subparagraph (A), by striking ‘‘sub-
section (b)(3)(A) and for products, services, and 
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acquisition vehicles funded under subsection 
(b)(3)(B)’’ and inserting ‘‘subsection (b)(3)’’; 
(B) in subparagraph (B), by striking the 
period at the end and inserting a semicolon; 
and 
(C) 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)’’; 
(4) by redesignating subsections (e) and (f) as 
subsections (f) and (g), respectively; 
(5) by inserting after subsection (d) the fol-
lowing new subsection: 
‘‘(e) RESPONSIBILITIES OF THE FEDERAL CHIEF IN-
FORMATION OFFICER; AGENCY CHIEF INFORMATION OF-
FICERS.— 
‘‘(1) AGENCY
INVENTORY.—An agency Chief 
Information Officer, in coordination with stake-
holders and other agency officials, shall provide to 
the Federal Chief Information Officer— 
‘‘(A) on or before the first September 30 
that occurs after the date of the enactment of 
the Modernizing Government Technology Re-
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form Act, a list of high-risk legacy information 
technology systems used, operated, or main-
tained 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 pro-
vided under subparagraph (A), any updates to 
such list. 
‘‘(2) LEGACY
FEDERAL
IT
INVENTORY.—The 
Federal Chief Information Officer shall— 
‘‘(A) on or before the first December 30 
that occurs after the date of the enactment of 
the Modernizing Government Technology Re-
form Act, compile a Legacy Federal IT Inven-
tory on the basis of the each list provided by an 
agency Chief Information Officers under para-
graph (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 
the basis of each update to the list provided by 
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an agency Chief Information Officer under 
paragraph (1)(B). 
‘‘(3) PRIORITIZATION LIST.— 
‘‘(A) REQUIREMENT.—The Federal Chief 
Information Officer shall— 
‘‘(i) not later than 90 days after the 
date on which the Federal Chief Informa-
tion Officer receives the list required by 
paragraph (1)(A) from each agency Chief 
Information Officer, compile, on the basis 
of each such list, a list of 10 legacy infor-
mation technology systems that present the 
greatest security, privacy, and operational 
risks to the Federal Government; and 
‘‘(ii) not later than 90 days after the 
date on which the Federal Chief Informa-
tion Officer receives updates under para-
graph (1)(B) from each agency Chief In-
formation Officer, update the list required 
by subparagraph (A) on the basis of each 
updates to the list provided by agency 
Chief information Officers under para-
graph (1)(B). 
‘‘(B) REPORT
TO
CONGRESS.—Not later 
than 14 days after the date on which the Fed-
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eral Chief Information Officer compiles the list 
required by subparagraph (A), or updates such 
list, the Director shall submit to the Committee 
on Oversight and Government Reform of the 
House of Representatives, the Committee on 
Homeland Security 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— 
‘‘(i) prescribe an appropriate format 
for list to be provided under paragraph 
(1)(A); 
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‘‘(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 
agency Chief Information Officers, in co-
ordination with other agency stakeholders, 
to identify as a high risk legacy informa-
tion technology system any outdated or ob-
solete system of information technology 
that is critical to the agency such that the 
loss or degradation of the system would 
create a security, operational, or privacy 
risk to the agency or would otherwise im-
pact the ability of the agency to perform 
the mission of the agency, effectively de-
liver programs, or conduct business; and 
‘‘(iv) provide guidance on how existing 
reporting structures can be used to submit 
the Legacy Federal IT inventory required 
by paragraph (2). 
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‘‘(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 Of-
ficer’ 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 Of-
ficer’ means the Administrator of the Office of 
Electronic Government.’’; and 
(6) 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 Decem-
ber 31, 2032,’’. 
Æ 
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