In the News

Today, Representatives Will Hurd (R-TX), Gerry Connolly (D-VA), Robyn Kelly (D-IL) and Sentor Mark Warner (D-VA) introduced the Modernizing Government Technology (MGT) Act. The legislation builds off the MGT Act which unanimously passed the House of Representatives in 2016.

“I am proud to join Representatives Hurd, Kelly, and Senator Warner in reintroducing this critical IT modernization legislation,” said Rep. Gerry Connolly. “The MGT Act builds on the success of the bipartisan Federal IT Acquisition and Reform Act and ensures the savings and efficiencies created by FITARA provide the investment needed for agencies to transition to the cloud. 

“The working capital funds established by the MGT Act will create an incentive for agencies to find savings and reinvest them internally, creating a virtuous cycle. This reform has the potential to significantly speed up the federal government’s move to 21st century technologies.”

“We were pleased to see continued support for this bill from both industry and the executive branch. Moving forward with MGT,  we hope that the Administration will join Congress in making long overdue investments in federal IT and modernization efforts.”

Under the MGT Act, savings from IT modernization, including FITARA implementation, would be placed into a working capital fund that can be accessed for up to two years for additional modernization efforts. This approach eliminates the traditional use-it or lose-it approach that has plagued government technology for decades. MGT will help agencies move to the cloud, improve cybersecurity and realize additional efficiencies.

“The federal government spends $80 billion each year on IT systems and 80 percent of which is spent maintaining outdated, legacy systems. Our government needs to be able to introduce cutting edge technology into their networks to improve operational efficiency and decrease operational cost. The MGT Act does just that,” said Rep. Hurd.

“We’ve been fighting to get this bill signed into law because the American people deserve better from their government. A move towards modern technologies can keep our information and digital infrastructure secure from cyberattacks, while saving billions of taxpayer dollars. This legislation is an innovation solution and another step forward in strengthening our digital infrastructure,” Hurd added.

"Ensuring that government agencies have the resources to invest in current technology is smart management: Up-to-date systems mean improved service delivery, enhanced security, and ultimately enable agencies to do their jobs more effectively and better serve taxpayers,” said Senator Warner.  “I’m pleased to again support this bipartisan proposal, which represents a commonsense step towards enabling agencies to make these critical investments."

Changes to the MGT Act include:

• The centralized fund is authorized for appropriation for 2 years instead of unlimited years. The limit for appropriation per year is $250m.
• Changes to ensure that agencies can only use future funds for modernization. This was the goal of the first versions, but we didn't have the language structured correctly.
• The working capital funds now have 5 years to pay back the Technology Modernization Fund if they borrow modernization funds. IT was unlimited before.