Federal Agencies Modernize Technology and Service Delivery with Reauthorized Funds Amidst Growing Focus on Cost-Saving Efforts

House Approves Legislation Regarding Technology Funding and Service Delivery

The House has recently passed two bills aimed at enhancing federal agency technology and service delivery. HR-5527, which reauthorizes the Technology Modernization Fund (TMF) through 2033, focuses on replacing outdated IT systems in federal agencies. This bill includes provisions for agencies to create a “federal legacy IT inventory” to track their progress, report on their ability to repay the fund, and reimburse the fund for awards and administrative fees. The TMF provides upfront funding for agencies to replace legacy systems with the expectation that they will repay the fund from cost savings.

Although the TMF’s goal is to promote cost savings, a report from the GAO last year revealed that only eight out of 37 funded projects have shown measurable savings. However, most projects are still in progress, leaving room for potential future savings. Despite this finding, HR-5887 was passed by a voice vote in bipartisan fashion, indicating broad support for the reauthorization of the TMF. In addition to this bill, HR-5527 was passed by the House.

Meanwhile, other developments are happening in federal news such as an increase in cost-of-living adjustment for federal employees to 2.2 percent. The Office of Government Ethics has also finalized changes to federal employee ethics rules. Efforts to limit offsite work and reduce office space are gaining traction among government agencies. A report has criticized VA executives for receiving bonuses of up to $100,000 for skills incentives while USPS announced plans to slow down changes to processing and delivery services. There are resources available for federal employees considering adding or waiving FEGLI coverage or calculating annuity estimates among other things.

In conclusion, Congress continues its efforts towards modernizing technology and improving service delivery within federal agencies through reauthorizing funds like HR-5527 and HR-5887 while also addressing concerns related

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