IB 
Union Calendar No. 326 
118TH CONGRESS 
2D SESSION 
H. R. 5527 
[Report No. 118–397] 
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 
SEPTEMBER 18, 2023 
Ms. MACE (for herself and Mr. CONNOLLY) introduced the following bill; 
which was referred to the Committee on Oversight and Accountability 
FEBRUARY 23, 2024 
Additional sponsor: Mr. KHANNA 
FEBRUARY 23, 2024 
Reported with an amendment, committed to the Committee of the Whole 
House on the State of the Union, and ordered to be printed 
[Strike out all after the enacting clause and insert the part printed in italic] 
[For text of introduced bill, see copy of bill as introduced on September 18, 2023] 
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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. 
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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’’. 
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— 
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‘‘(I) modernize, retire, or replace 
legacy information technology systems 
used by the agency; 
‘‘(II) enhance cybersecurity and 
privacy at the agency; 
‘‘(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 pub-
lic. 
‘‘(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 
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be reimbursed to the Fund to the extent nec-
essary to ensure total amounts in the Fund 
are no less than the amounts needed to keep 
the Fund operational until the Fund sun-
sets pursuant to subsection (g)(1). 
‘‘(B) TERMINATION
OR
SUSPENSION
OF 
FUNDS.—The Administrator shall, in accordance 
with recommendations from the Board, suspend 
or terminate funding for any project with respect 
to which the head of an agency provided fraudu-
lent or misleading statements about such project 
(including fraudulent statements about technical 
design, the business case, or program manage-
ment with respect to the project) in the applica-
tion or proposal for amounts from the Fund for 
such project.’’; 
(B) in paragraph (4)(A), by striking 
‘‘$250,000,000’’ and inserting ‘‘$50,000,000’’ and 
by striking ‘‘fiscal years 2018 and 2019’’ and in-
serting ‘‘fiscal years 2024 through 2030’’; 
(C) in paragraph (5)— 
(i) in subparagraph (A)— 
(I) in clause (i)— 
(aa) by striking ‘‘or (B)’’; 
and 
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(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 
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 sun-
sets pursuant to subsection (g)(1)’’; 
(D) in paragraph (6)— 
(i) in subparagraph (A)— 
(I) in the matter before clause (i), 
by striking ‘‘subparagraphs (A) and 
(B) of paragraph (3)’’ and inserting 
the following: ‘‘paragraph (3)(A)(i) 
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and before any services or work are 
provided 
under 
paragraph 
(3)(A)(ii)(I)’’; 
(II) in clause (i)— 
(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 agency 
to reimburse the Fund for funds transferred 
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 agency 
to fully reimburse the Fund for any services 
or 
work 
provided 
under 
paragraph 
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(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: 
‘‘(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 transferred 
only— 
‘‘(I) on an incremental basis, tied 
to metric-based development milestones 
achieved by the agency through the use 
of rapid, iterative, development proc-
esses; and 
‘‘(II) after the head of the agency 
has provided the Director any informa-
tion the Director is required to report 
pursuant to paragraph (7)(A)(i); and’’; 
and 
(II) in clause (ii)— 
(aa) by striking ‘‘subpara-
graphs (A) and (B) of paragraph 
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