The General Services Administration (GSA) has updated its repayment policy for agencies seeking financial assistance from the Technology Modernization Fund (TMF). The new policy requires a minimum repayment of 50% and allows for exceptions on a case-by-case basis. These changes come after lawmakers proposed a bill in September 2023 that would enforce repayment of TMF funds.
The GSA, in conjunction with the White House’s Office of Management and Budget, has revised its repayment policy for agencies seeking financial assistance from the Technology Modernization Fund (TMF). The new policy requires a minimum repayment of 50% and allows for exceptions determined by the GSA administrator and the OMB director. This comes in response to a proposed bill by Reps. Nancy Mace and Gerry Connolly, which called for the repayment of TMF funds. The updated policy applies to all proposals submitted after February 6th.
According to the emailed announcement, the new repayment policy is intended to enable the TMF to continue investing in technology and cybersecurity modernization in the coming years. While the revised policy is consistent with the Modernizing Government Technology Reform Act of 2023, it also reflects the original intent behind the creation of the TMF in 2017, which was for agencies to repay the funds provided in order to ensure sustainability.
The Office of Management and Budget spokesperson confirmed the update to the TMF’s repayment policy, stating that it was an important function to support the $1 billion in American Rescue Plan funds that were allocated to the TMF. However, the spokesperson also emphasized the need to balance congressional intent with agency flexibility in delivering the most impact for the American people.
The update to the repayment policy has received positive responses from the lawmakers who proposed the bill. Rep. Nancy Mace stated that the changes are a result of ongoing oversight and legislative work, and she will continue to work to eliminate waste, fraud, and abuse in federal programs. Rep. Gerry Connolly, on the other hand, praised the Biden administration for its commitment to the TMF’s long-term health and sustainability and expressed his desire to secure further investments in federal IT.
In addition to the repayment policy update, the TMF also announced that it is now accepting applications for AI projects from federal agencies to advance the government’s deployment of technology.