[House Report 118-397]
[From the U.S. Government Publishing Office]


118th Congress }                                              { Report
                        HOUSE OF REPRESENTATIVES
 2d Session    }                                              { 118-397

======================================================================



 
              MODERNIZING GOVERNMENT TECHNOLOGY REFORM ACT

                                _______
                                

 February 23, 2024.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

    Mr. Comer, from the Committee on Oversight and Accountability, 
                        submitted the following

                              R E P O R T

                        [To accompany H.R. 5527]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Oversight and Accountability, to whom was 
referred the bill (H.R. 5527) 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, having considered the same, 
reports favorably thereon with an amendment and recommends that 
the bill as amended do pass.

                                CONTENTS

                                                                   Page
Summary and Purpose of Legislation...............................     5
Background and Need for Legislation..............................     6
Section-by-Section Analysis......................................     8
Legislative History..............................................    10
Committee Consideration..........................................    10
Roll Call Votes..................................................    10
Explanation of Amendments........................................    12
List of Related Committee Hearings...............................    12
Statement of Oversight Findings and Recommendations of the 
  Committee......................................................    12
Statement of General Performance Goals and Objectives............    12
Application of Law to the Legislative Branch.....................    12
Duplication of Federal Programs..................................    13
Disclosure of Directed Rule Makings..............................    13
Federal Advisory Committee Act Statement.........................    13
Unfunded Mandates Reform Act Statement...........................    13
Earmark Identification...........................................    13
Committee Cost Estimate..........................................    13
New Budget Authority and Congressional Budget Office Cost 
  Estimate.......................................................    13
Changes in Existing Law Made by the Bill, as Reported............    15

    The amendment is as follows:
    Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Modernizing Government Technology 
Reform Act''.

SEC. 2. REALIGNING USE OF FUNDS WITH ORIGINAL CONGRESSIONAL 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 following:
                          ``(i) To transfer such amounts, to remain 
                        available until expended, to the head of an 
                        agency for the acquisition, procurement, and 
                        operation of information technology, or the 
                        development of information technology when more 
                        efficient and cost effective, to--
                                  ``(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 efficiency 
                                and effectiveness of agency information 
                                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 performed 
                        in support of--
                                  ``(I) the activities described in 
                                clause (i); and
                                  ``(II) the Board and the Director in 
                                carrying out the responsibilities 
                                described 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 extent necessary 
                        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).
                  ``(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 fraudulent or misleading statements about such 
                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 
                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 inserting ``fiscal years 2024 
                through 2030'';
                  (C) 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 
                                reprogramming law or guidelines of the 
                                Committees on Appropriations of the 
                                Senate and the House of 
                                Representatives''; 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 
                                expenses'' 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)'';
                  (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) and 
                                before any services or work are 
                                provided under paragraph 
                                (3)(A)(ii)(I)'';
                                  (II) in clause (i)--
                                          (aa) by striking ``unless 
                                        approved 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 repayment 
                        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 
                        repayment that require the head of the agency 
                        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 
                                inserting the following:
                          ``(i) for any funds transferred to an agency 
                        under paragraph (3)(A)(i), in the absence of 
                        compelling circumstances documented 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 
                                processes; and
                                  ``(II) after the head of the agency 
                                has provided the Director any 
                                information the Director is required to 
                                report pursuant to paragraph (7)(A)(i); 
                                and''; and
                                  (II) in clause (ii)--
                                          (aa) by striking 
                                        ``subparagraphs (A) and (B) of 
                                        paragraph (3)'' and inserting 
                                        ``paragraph (3)(A)(i)''; and
                                          (bb) by striking ``paragraph 
                                        (6)'' and inserting ``this 
                                        paragraph'';
                  (E) in paragraph (7)--
                          (i) in subparagraph (A)(i)--
                                  (I) by inserting ``the written 
                                agreement entered into under paragraph 
                                (6),'' after ``description of the 
                                project,''; and
                                  (II) by inserting ``(including 
                                documented market research into 
                                commercial products and services)'' 
                                after ``used'';
                          (ii) in subparagraph (B)--
                                  (I) in clause (i)--
                                          (aa) by striking 
                                        ``establishing''; 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 following: ``the amount 
                                        repaid to the Fund in 
                                        accordance with the terms 
                                        established in the written 
                                        agreements described in 
                                        paragraph (6);'';
                                  (II) in clause (ii)--
                                          (aa) by striking 
                                        ``reliability of the cost 
                                        savings'' and inserting ``total 
                                        cost savings''; and
                                          (bb) by striking the 
                                        semicolon 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 impact 
                        on modernizing, retiring, or replacing Federal 
                        legacy information technology systems; 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 the agency, in 
                        accordance with subsection (b);'';
                  (B) in subparagraph (D), by striking ``to improve or 
                replace multiple information technology 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 
                identification of fraudulent or misleading statements 
                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 following: ``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 (c)--
                  (A) in paragraph (5)--
                          (i) in subparagraph (B) by striking the 
                        period at the end and inserting ``; and''; and
                          (ii) by inserting after subparagraph (B) the 
                        following;
                  ``(C) a senior official from the Cybersecurity and 
                Infrastructure Security Agency of the Department of 
                Homeland Security, appointed by the Director of the 
                Cybersecurity and Infrastructure Security Agency, with 
                the approval of the Director of the Office of 
                Management and Budget.'';
                  (B) in paragraph (6)(A)--
                          (i) by striking ``shall be--'' and inserting 
                        ``shall be 4 employees of the Federal 
                        Government primarily having technical expertise 
                        in information technology development, 
                        financial management, cybersecurity and 
                        privacy, and acquisition, appointed by the 
                        Director.''; and
                          (ii) by striking clauses (i) and (ii); and
          (4) in subsection (d)(2)--
                  (A) in subparagraph (A), by striking ``subsection 
                (b)(3)(A) and for products, services, and acquisition 
                vehicles funded under subsection (b)(3)(B)'' and 
                inserting ``subsection (b)(3)''; and
                  (B) 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)'';
          (5) by redesignating subsections (e) and (f) as subsections 
        (f) and (g), respectively;
          (6) by inserting after subsection (d) the following new 
        subsection:
  ``(e) Responsibilities of the Federal Chief Information Officer; 
Agency Chief Information Officers.--
          ``(1) Agency inventory.--An agency Chief Information Officer, 
        in coordination with stakeholders 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 Reform Act of 2023, a list of 
                high-risk legacy information technology systems used, 
                operated, or maintained 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 provided 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 Reform Act of 2023, compile a 
                Legacy Federal IT Inventory on the basis of the each 
                list provided by an agency Chief Information Officers 
                under paragraph (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 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 Information 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 information 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 Information Officer 
                        receives updates under paragraph (1)(B) from 
                        each agency Chief Information Officer, update 
                        the list required by subparagraph (A) on the 
                        basis of each updates to the list provided by 
                        agency Chief information Officers under 
                        paragraph (1)(B).
                  ``(B) Report to congress.--Not later than 14 days 
                after the date on which the Federal Chief Information 
                Officer compiles the list required by subparagraph (A), 
                or updates such list, the Director shall submit to the 
                Committee on Oversight and Accountability 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 requirements of this 
                subsection that shall, at a minimum--
                          ``(i) prescribe an appropriate format for 
                        list to be provided under paragraph (1)(A);
                          ``(ii) prescribe the information to be 
                        included in the Legacy Federal IT Inventory 
                        required by paragraph (2);
                          ``(iii) provide guidance on how an agency 
                        Chief Information Officer should identify high-
                        risk legacy information technology systems 
                        that, at least, requires agency Chief 
                        Information Officers, in coordination with 
                        other agency stakeholders, to identify as a 
                        high risk legacy information technology system 
                        any outdated or obsolete 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 
                        impact the ability of the agency to perform the 
                        mission of the agency, effectively deliver 
                        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).
                  ``(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 officer.--The term 
                `agency Chief Information Officer' means a Chief 
                Information Officer designated under section 3506(a)(2) 
                of title 44, United States Code.
                  ``(B) Federal chief information officer.--The term 
                `Federal Chief Information Officer' means the 
                Administrator of the Office of Electronic 
                Government.''; and
          (7) 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 December 31, 2030,''.

                   Summary and Purpose of Legislation

    H.R. 5527 reforms and reauthorizes the Technology 
Modernization Fund (TMF) and its governing board, the 
Technology Modernization Board (TMB), which were established by 
the bipartisan Modernizing Government Technology Act of 2017 
(P.L. 115-91). The Modernizing Government Technology Reform Act 
includes several measures to improve the administration of the 
TMF and ensure program operations adhere to original 
congressional intent. The bill requires TMF awards to be 
reimbursed at the level needed to ensure the Fund remains 
operational into future years and creates a new requirement 
that agencies reimburse administrative fees. The bill also 
establishes a Federal Legacy IT Inventory, a new oversight tool 
that will enable Congress to evaluate agency and government-
wide priority items for legacy IT modernization and to assess 
how well the TMF is being focused by the Administration to fund 
projects addressing such legacy IT priorities. Finally, this 
bill reauthorizes the TMF and TMB and establishes a December 
2030 sunset.

                  Background and Need for Legislation

    The Technology Modernization Fund (TMF) and its governing 
board, the Technology Modernization Board, were established by 
the bipartisan Modernizing Government Technology Act of 2017, 
which passed into law as section 1078 of the Fiscal Year 2018 
National Defense Authorization Act (NDAA) (P.L. 115-91; 40 
U.S.C. 11301 note, ``Establishment of Technology Modernization 
Fund and Board'').
    The TMF is appropriated funds by Congress which it is 
authorized under the law to then transfer to the head of an 
agency to improve, retire, or replace existing Federal 
information technology (IT) systems, enhance cybersecurity and 
privacy, and improve long term efficiency and effectiveness. 
Agencies can apply for these fund transfers (awards) by 
submitting a project proposal to the Technology Modernization 
Board.
    The Technology Modernization Board, chaired by the 
Administrator of the Office of Electronic Government (Federal 
CIO), reviews project proposals and recommends projects to 
fund. Before transferring funds for awarded projects, GSA and 
the awarded agency enter into a written agreement that governs 
the project and terms of repayment.
    The TMF is intended to address the long-standing problem of 
funding legacy IT modernization projects that span multiple 
years. That is, the annual appropriations cycle makes it 
difficult for agencies to plan and implement upgrades to legacy 
IT systems, which can take several years to accomplish. In the 
short term, the replacement process requires running existing 
systems while building new ones--incurring additional costs 
before savings can be achieved. The TMF allows agencies to 
borrow against future savings to better plan and fund legacy IT 
system upgrades. In this regard, the TMF is a success.
    However, several reforms are needed to ensure the TMF and 
the Technology Modernization Board operate effectively into the 
future and in accordance with Congressional intent. For 
example, while the TMF was intended to be a revolving fund, 
agencies have been increasingly allowed to make partial (25%, 
50% of 75%) or minimal (less than 25%) repayments. This forces 
the Fund to rely on ongoing appropriations beyond those 
authorized by the 2017 law and risks the long-term solvency of 
the Fund--which was not the original intention of Congress in 
creating the Fund.
    While the determination by OMB and GSA to allow partial and 
minimal payments deviates from congressional intent, the U.S. 
Government Accountability Office (GAO) has determined that it 
is allowed under existing law. A decision issued by GAO on July 
14, 2022, concluded that while GSA and OMB cannot entirely 
waive agency reimbursements, they have ``the discretion to set 
reimbursement terms and amounts to be paid subject to other 
statutory requirements, which may include allowing less than 
full reimbursement.''\1\
---------------------------------------------------------------------------
    \1\Government Accountability Office, Office of Management and 
Budget/General Services Administration Reimbursement Requirement for 
the Technology Modernization Fund (July 14, 2022).
---------------------------------------------------------------------------
    H.R. 5527 reforms existing law by requiring TMF awards to 
be reimbursed at the level needed to ensure the Fund is 
operational until it sunsets in December 2030, as reauthorized 
by H.R. 5527. While this would not mandate that OMB and GSA 
require full reimbursement for each award, it does require the 
TMF to increase reimbursement rates across all awards to ensure 
the fund remains operational. Since the bill intends to make 
the Fund less reliant on annual appropriations, the bill 
establishes a lower, annual authorization of appropriations 
through 2030 at $50,000,000 a year--as compared to the original 
authorization of appropriations of $250,000,000 for both Fiscal 
Year 2018 and Fiscal year 2019 (P.L. 115-91, Sec. 
1078(b)(4)(A)). This $50,000,000 matches the Fiscal Year 2023 
enacted amount of $50,000,000 for the fund (P.L. 117-328, Sec. 
2, Division E, Title V), thus keeping the authorization amount 
flat respective to the most recent appropriations.
    H.R. 5527 further reforms the TMF by requiring agencies 
fully repay administrative costs associated with a project. 
This reform will ensure the TMF program office is fiscally 
sustainable and appropriated funds contribute to project awards 
rather than administrative operations. This reform is necessary 
because as of August 2021,\2\ the TMF had obligated $2.8 
million to cover operating expenses but had only collected 
$808,889 in administrative fees from agencies.\3\ 
Administrative fees are currently collected for the TMF by 
calculating a percentage of the agency's award.\4\ This has 
resulted in a mere 29 percent recovery rate of obligated 
operating costs.\5\
---------------------------------------------------------------------------
    \2\The Modernizing Government Technology Act of 2017 requires GAO 
to report biannually on the TMF and projects that have received awards. 
The most recent GAO report was released in December 2021, limiting most 
available financial data on TMF awards and repayment to August 2021.
    \3\Government Accountability Office, Technology Modernization Fund 
Implementation of Recommendations Can Improve Fee Collection and 
Proposal Cost Estimates (December 2021) (GAO-22-105117).
    \4\Id.
    \5\Id.
---------------------------------------------------------------------------
    Furthermore, the TMF's largest award to date--$187 
million--was provided to GSA for the Login.gov project to 
``further scale the Login.gov shared service with more advanced 
cybersecurity capabilities, expand identity verification 
coverage, and expand integrations with agency public-facing 
digital services.''\6\ According to a GSA Office of Inspector 
General (OIG) report released on March 7, 2023, GSA made 
inaccurate statements about Login.gov's performance to obtain 
TMF funds.\7\ This GSA OIG report found that GSA's September 
2021 project proposal submitted to the Technology Modernization 
Board claimed that Login.gov adhered to NIST's 800-63-3 IAL2 
identity verification standard.\8\ This claim was untrue.\9\
---------------------------------------------------------------------------
    \6\Id.
    \7\General Services Administration, Office of Inspector Gen., GSA 
Misled Customers on Login.gov's Compliance with Digital Identity 
Standards, at 3 (JE23-003) (March 7, 2023).
    \8\General Services Administration, Office of Inspector Gen., GSA 
Misled Customers on Login.gov's Compliance with Digital Identity 
Standards, at 3 (JE23-003) (March 7, 2023).
    \9\Id.
---------------------------------------------------------------------------
    H.R. 5527 protects the TMF from future fraudulent 
applications by requiring the GSA Administrator to suspend or 
terminate project funding if the Technology Modernization Board 
finds that fraudulent or misleading statements were provided by 
an agency about a project for the purpose of obtaining funds.
    H.R. 5527 also establishes a Federal Legacy IT Inventory, a 
new oversight tool to ensure that the Federal government is 
addressing the problem of legacy IT systems. This new 
requirement ensures that agencies compile and submit a list of 
high-risk legacy IT systems used, operated, or maintained by 
the agency to the Federal CIO. The Federal CIO must then create 
and submit to congress a prioritization list of 10 legacy IT 
systems that present the greatest security, privacy, and 
operational risks to the Federal government. This inventory 
allows Congress to conduct oversight of the Federal 
government's modernization of legacy IT systems and to assess 
how well the TMF is funding projects that address components of 
OMB's priority legacy IT list.

                      Section-by-Section Analysis


Sec. 1. Short title

           The short title is the ``Modernizing 
        Government Technology Reform Act of 2023''.

Section 2. Realigning use of funds with original congressional intent

           Subparagraph (1)(A) strikes and replaces 
        paragraph (b)(3) of Section 1078 of the FY 2018 
        National Defense Authorization Act (NDAA) (P.L. 115-91) 
        (40 U.S.C. 11301 note, ``Establishment of Technology 
        Modernization Fund and Board'') to modify the 
        Technology Modernization Fund's (TMF) authorized use of 
        funds to better adhere to the original congressional 
        intent:
                   Retains authorization for the 
                TMF to transfer funds to the head of an agency 
                to modernize, retire, or replace legacy IT, 
                enhance cybersecurity, improve long-term 
                efficiency and effectiveness of agency 
                technology, and improve agency mission 
                delivery.
                   Adds a new requirement for the 
                TMF to only transfer funds to projects that 
                will reimburse the Fund to the extent necessary 
                to keep the Fund operational until it sunsets 
                in December 2030 (as reauthorized by this 
                bill).
                   Adds a new requirement for the 
                Administrator of the General Services 
                Administration (GSA) to terminate or suspend 
                funding, upon recommendation from the 
                Technology Modernization Board (TMB), for any 
                project that included fraudulent or misleading 
                information in its project proposal.
           Subparagraph (1)(B) strikes the previous 
        authorization of appropriations of $250,000,000 for FY 
        2018 and FY 2019 and reauthorizes appropriations at the 
        lower amount of $50,000,000 for FY 2024 through 2030 
        (e.g., FY 2023 enacted).
           Subparagraph (1)(C) ensures agencies are 
        able and required to reimburse the Fund.
           Subparagraph (1)(D) modifies the written 
        agreement governing terms of repayment between the head 
        of the agency to--
                   Require agencies to reimburse 
                the Fund for administrative support.
                   Require the terms of repayment 
                for the award to be set at a level needed to 
                keep the Fund operational until it sunsets.
                   Require agencies provide 
                documents on project status and use of 
                commercial products and services before 
                receiving funds.
           Subparagraph (1)(E) increases the 
        transparency of Fund awards and modernizes outdated 
        reporting requirements by--
                   Creating a new requirement that 
                the Fund publish project written agreements.
                   Requiring agencies document 
                their market research into commercial products 
                and services for each project.
                   Modernizing the requirements for 
                GAO's biannual review.
           Subparagraph (2)(A) adds new requirements to 
        the TMB's project evaluation criteria, including 
        prioritizing an agency's ability to repay the Fund and 
        focusing on the projects impact Federal legacy IT.
           Subparagraph (2)(C) adds new requirements 
        for the TMB to recommend the suspension or termination 
        of Funds to GSA if the project proposal included 
        fraudulent or misleading statements.
           Subparagraph (2)(D) adds new requirements 
        for the TMB to monitor the operating costs of the Fund 
        to ensure total amounts are no less than those needed 
        to keep the Fund operational (or solvent) until it 
        sunsets.
           Subparagraph (3)(A) makes a senior official 
        from the Cybersecurity and Infrastructure Security 
        Agency (CISA) a permanent member of the TMB.
           Subparagraph (4)(B) requires GSA to ensure 
        that total amounts in the Fund are no less than those 
        needed to keep the Fund operational until it sunsets.
           Paragraph (6) inserts a new subsection into 
        Section 1078 of the FY 2018 National Defense 
        Authorization Act (NDAA) (P.L. 115-91) (40 U.S.C. 11301 
        note, ``Establishment of Technology Modernization Fund 
        and Board'') titled ``(e) Responsibilities of the 
        Federal Chief Information Officer; Agency Chief 
        Information Officers.''
                   Requires agency Chief 
                Information Officers (CIO) to annually submit a 
                list of high-risk legacy IT systems used, 
                operated, or maintained by the agency at the 
                end of the fiscal year (September 30th).
                   Requires the Federal CIO, within 
                90 days of receiving the agency lists, to 
                compile all agency inventories and create a 
                prioritization list of 10 legacy IT systems 
                that present the greatest security, privacy, 
                and operational risks to the Federal government 
                and submit the lists to Congress within 14 
                days.
                   Requires the Director of the 
                Office of Management and Budget (OMB) to issue 
                guidance on implementing this new subsection.
                   Provides for definitions for 
                ``agency Chief Information Officer'' (44 U.S.C. 
                3506(a)(2)) and for ``Federal Chief Information 
                Officer'' (Administrator of the Office of 
                Electronic Government).
           Paragraph (7) reauthorizes the TMF through 
        December 31, 2030.

                          Legislative History

    H.R. 5527 was introduced on September 18, 2023, by 
Representative Nancy Mace. The bill was referred to the 
Committee on Oversight and Accountability. Representative Gerry 
Connolly (D-VA) and Representative Ro Khanna (D-CA) are 
cosponsors of the bill. The Committee on Oversight and 
Accountability held a hearing related to and used for 
development and consideration of the bill on May 10, 2023. The 
Committee considered H.R. 5527 at a business meeting on 
September 20, 2023, and ordered the bill as amended favorably 
reported by a recorded vote.

                        Committee Consideration

    On September 20, 2023, the Committee met in open session 
and ordered the bill, H.R. 5527, favorably reported with an 
amendment in the nature of a substitute, by a roll call vote of 
43-0, a quorum being present.

                            Roll Call Votes

    In compliance with clause 3(b) of rule XIII of the Rules of 
the House of Representatives, the following roll call votes 
occurred during the Committee's consideration of H.R. 5527:
    The first and only roll call vote was on final passage of 
H.R. 5527. The bill was agreed to in a recorded vote of 43-0.
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                       Explanation of Amendments

    During Committee consideration of the bill, Representative 
James Comer (R-KY), Chairman of the Committee, offered an 
amendment in the nature of a substitute that made certain 
technical changes to the bill. The amendment in the nature of a 
substitute passed by voice vote.

                   List of Related Committee Hearings

    In accordance with House rule XIII, clause 3(c)(6)(A), (1) 
the following Committee hearing was used to develop or consider 
H.R. 5527:
    On May 10, 2023, the Subcommittee on Cybersecurity, 
Information Technology, and Government Innovation of the 
Committee on Oversight and Accountability held a hearing titled 
``Risky Business: Costly Inaction on Federal Legacy IT'' with 
Mr. Kevin Walsh, Director, Information Technology and 
Cybersecurity, U.S. Government Accountability Office; Ms. 
Suzette Kent, Chief Executive Officer, Kent Advisory Services; 
and Mr. David Powner, Executive Director, Center for Data-
Driven Policy.
    (2) The following hearing related to H.R. 5527 was held:
    On May 10, 2023, the Subcommittee on Cybersecurity, 
Information Technology, and Government Innovation of the 
Committee on Oversight and Accountability held a hearing titled 
``Risky Business: Costly Inaction on Federal Legacy IT'' with 
Mr. Kevin Walsh, Director, Information Technology and 
Cybersecurity, U.S. Government Accountability Office; Ms. 
Suzette Kent, Chief Executive Officer, Kent Advisory Services; 
and Mr. David Powner, Executive Director, Center for Data-
Driven Policy.

    Statement of Oversight Findings and Recommendations of 
                       the Committee

    In compliance with clause 3(c)(1) of rule XIII and clause 
(2)(b)(1) of rule X of the Rules of the House of 
Representatives, the Committee's oversight findings and 
recommendations are reflected in the Background and Need for 
Legislation section above.

         Statement of General Performance Goals and Objectives

    In accordance with clause 3(c)(4) of rule XIII of the Rules 
of the House of Representatives, the Committee's performance 
goals or objectives of this bill are to increase the 
effectiveness of the Technology Modernization Fund, and for 
other purposes.

              Application of Law to the Legislative Branch

    Section 102(b)(3) of Public Law 104-1 requires a 
description of the application of this bill to the legislative 
branch where the bill relates to the terms and conditions of 
employment or access to public services and accommodations. 
This bill does not relate to employment or access to public 
services and accommodations in the legislative branch.

                    Duplication of Federal Programs

    In accordance with clause 3(c)(5) of rule XIII no provision 
of this bill establishes or reauthorizes a program of the 
Federal Government known to be duplicative of another Federal 
program, a program that was included in any report from the 
Government Accountability Office to Congress pursuant to 
section 21 of Public Law 111-139, or a program related to a 
program identified in the most recent Catalog of Federal 
Domestic Assistance.

                  Disclosure of Directed Rule Makings

    This bill does not direct the completion of any specific 
rule makings within the meaning of section 551 of title 5, 
U.S.C.

                Federal Advisory Committee Act Statement

    The Committee finds that this legislation does not direct 
the establishment of advisory committees within the definition 
of Section 5(b) of the appendix to title 5, U.S.C.

                 Unfunded Mandates Reform Act Statement

    Pursuant to section 423 of the Congressional Budget Act of 
1974 the Committee has included a letter received from the 
Congressional Budget Office below.

                         Earmark Identification

    This bill does not include any congressional earmarks, 
limited tax benefits, or limited tariff benefits as defined in 
clause 9 of rule XXI of the House of Representatives.

                        Committee Cost Estimate

    Pursuant to clause 3(d) of rule XIII of the Rules of the 
House of Representatives, the Committee includes below a cost 
estimate of the bill prepared by the Director of the 
Congressional Budget Office under section 402 of the 
Congressional Budget Act of 1974.

     New Budget Authority and Congressional Budget Office  
                        Cost Estimate

    Pursuant to clause 3(c)(3) of rule XIII of the House of 
Representatives, the cost estimate prepared by the 
Congressional Budget Office and submitted pursuant to section 
402 of the Congressional Budget Act of 1974 is as follows:

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    H.R. 5527 would amend the Technology Modernization Fund 
(TMF) as authorized in the National Defense Authorization Act 
for Fiscal Year 2018 and would authorize the appropriation of 
$50 million annually through 2030 for the fund. H.R. 5527 also 
would create new reporting requirements for federal agencies 
regarding their information technology (IT) systems.
    The TMF is a working capital fund designed to retire and 
replace older IT systems. In 2023, $50 million was appropriated 
to the fund for those purposes. Under current law, agencies 
that use funds from the TMF to modernize their IT systems must 
repay the fund. Any repayments would be subject to the 
availability of future appropriations and once made would be 
available through the TMF to fund IT system upgrades for other 
agencies. Under H.R. 5527 agencies would need to submit more 
detail in their plans about their ability to repay the TMF 
before they could receive awards from the fund.
    Using historical spending patterns for the program and 
assuming appropriation of the specified amounts, CBO estimates 
that implementing H.R. 5527 would cost $175 million over the 
2024-2028 period, and $175 million after 2028.
    The costs of the legislation, detailed in Table 1, fall 
within all budget functions that contain federal IT systems.

                                   TABLE 1.--ESTIMATED INCREASES IN SPENDING SUBJECT TO APPROPRIATION UNDER H.R. 5527
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                          By fiscal year, millions of dollars--
                                                               -----------------------------------------------------------------------------------------
                                                                                                                                                  2024-
                                                                 2024   2025   2026   2027   2028   2029   2030   2031   2032   2033  2024-2028    2033
--------------------------------------------------------------------------------------------------------------------------------------------------------
Authorization.................................................     50     50     50     50     50     50     50      0      0      0       250       350
Estimated Outlays.............................................     12     25     38     50     50     50     50     38     25     12       175       350
--------------------------------------------------------------------------------------------------------------------------------------------------------

    The CBO staff contact for this estimate is Matthew 
Pickford. The estimate was reviewed by H. Samuel Papenfuss, 
Deputy Director of Budget Analysis.
                                         Phillip L. Swagel,
                             Director, Congressional Budget Office.

    H.R. 5527 would amend the Technology Modernization Fund 
(TMF) as authorized in the National Defense Authorization Act 
for Fiscal Year 2018 and would authorize the appropriation of 
$50 million annually through 2030 for the fund. H.R. 5527 also 
would create new reporting requirements for federal agencies 
regarding their information technology (IT) systems.
    The TMF is a working capital fund designed to retire and 
replace older IT systems. In 2023, $50 million was appropriated 
to the fund for those purposes. Under current law, agencies 
that use funds from the TMF to modernize their IT systems must 
repay the fund. Any repayments would be subject to the 
availability of future appropriations and once made would be 
available through the TMF to fund IT system upgrades for other 
agencies. Under H.R. 5527 agencies would need to submit more 
detail in their plans about their ability to repay the TMF 
before they could receive awards from the fund.
    Using historical spending patterns for the program and 
assuming appropriation of the specified amounts, CBO estimates 
that implementing H.R. 5527 would cost $175 million over the 
2024-2028 period, and $175 million after 2028.

         Changes in Existing Law Made by the Bill, as Reported

    In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, and existing law in which no 
change is proposed is shown in roman):

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, and existing law in which no 
change is proposed is shown in roman):

        NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2018




           *       *       *       *       *       *       *
DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

           *       *       *       *       *       *       *


TITLE X--GENERAL PROVISIONS

           *       *       *       *       *       *       *


Subtitle G--Modernizing Government Technology

           *       *       *       *       *       *       *


SEC. 1078. ESTABLISHMENT OF TECHNOLOGY MODERNIZATION FUND AND BOARD.

  (a) Definition.--In this section, the term ``agency'' has the 
meaning given the term in section 551 of title 5, United States 
Code.
  (b) Technology Modernization Fund.--
          (1) Establishment.--There is established in the 
        Treasury a Technology Modernization Fund for 
        technology-related activities, to improve information 
        technology, to enhance cybersecurity across the Federal 
        Government, and to be administered in accordance with 
        guidance issued by the Director.
          (2) Administration of fund.--The Administrator, in 
        consultation with the Chief Information Officers 
        Council and with the approval of the Director, shall 
        administer the Fund in accordance with this subsection.
          [(3) Use of funds.--The Administrator shall, in 
        accordance with recommendations from the Board, use 
        amounts in the Fund--
                  [(A) to transfer such amounts, to remain 
                available until expended, to the head of an 
                agency for the acquisition of products and 
                services, or the development of such products 
                and services when more efficient and cost 
                effective, to improve, retire, or replace 
                existing Federal information technology systems 
                to enhance cybersecurity and privacy and 
                improve long-term efficiency and effectiveness;
                  [(B) to transfer such amounts, to remain 
                available until expended, to the head of an 
                agency for the operation and procurement of 
                information technology products and services, 
                or the development of such products and 
                services when more efficient and cost 
                effective, and acquisition vehicles for use by 
                agencies to improve Governmentwide efficiency 
                and cybersecurity in accordance with the 
                requirements of the agencies;
                  [(C) to provide services or work performed in 
                support of--
                          [(i) the activities described in 
                        subparagraph (A) or (B); and
                          [(ii) the Board and the Director in 
                        carrying out the responsibilities 
                        described in subsection (c)(2); and
                  [(D) 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.]
          (3) Use of funds.--
                  (A) In general.--The Administrator shall, in 
                accordance with recommendations from the Board, 
                use amounts in the Fund for the following:
                          (i) To transfer such amounts, to 
                        remain available until expended, to the 
                        head of an agency for the acquisition, 
                        procurement, and operation of 
                        information technology, or the 
                        development of information technology 
                        when more efficient and cost effective, 
                        to--
                                  (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 
                                efficiency and effectiveness of 
                                agency information 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 
                        performed in support of--
                                  (I) the activities described 
                                in clause (i); and
                                  (II) the Board and the 
                                Director in carrying out the 
                                responsibilities described 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 extent necessary 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).
                  (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 
                fraudulent or misleading statements about such 
                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 such project.
          (4) Authorization of appropriations; credits; 
        availability of funds.--
                  (A) Authorization of appropriations.--There 
                is authorized to be appropriated to the Fund 
                [$250,000,000] $50,000,000 for each of [fiscal 
                years 2018 and 2019] fiscal years 2024 through 
                2030.
                  (B) Credits.--In addition to any funds 
                otherwise appropriated, the Fund shall be 
                credited with all reimbursements, advances, or 
                refunds or recoveries relating to information 
                technology or services provided for the 
                purposes described in paragraph (3).
                  (C) Availability of funds.--Amounts 
                deposited, credited, or otherwise made 
                available to the Fund shall be available until 
                expended for the purposes described in 
                paragraph (3).
          (5) Reimbursement.--
                  (A) Reimbursement by agency.--
                          (i) In general.--The head of an 
                        agency shall reimburse the Fund for any 
                        transfer made under subparagraph (A) 
                        [or (B)] of paragraph (3), including 
                        any services or work performed in 
                        support of the transfer under paragraph 
                        [(3)(C)] (3)(A)(ii), in accordance with 
                        the terms established in a written 
                        agreement described in paragraph (6).
                          (ii) Reimbursement from subsequent 
                        appropriations.--Notwithstanding any 
                        other provision of law, an agency may 
                        make a reimbursement required under 
                        clause (i) from any appropriation made 
                        available after the date of enactment 
                        of this Act for information technology 
                        activities[, consistent with any 
                        applicable reprogramming law or 
                        guidelines of the Committees on 
                        Appropriations of the Senate and the 
                        House of Representatives].
                          (iii) Recording of obligation.--
                        Notwithstanding section 1501 of title 
                        31, United States Code, an obligation 
                        to make a payment under a written 
                        agreement described in paragraph (6) in 
                        a fiscal year after the date of 
                        enactment of this Act shall be recorded 
                        in the fiscal year in which the payment 
                        is due.
                  (B) Prices fixed by administrator.--
                          (i) In general.--The Administrator, 
                        in consultation with the Director, 
                        shall establish amounts to be paid by 
                        an agency under this paragraph and the 
                        terms of repayment for activities 
                        funded under paragraph (3), including 
                        any services or work performed in 
                        support of that development under 
                        [paragraph (3)(C)] paragraph 
                        (3)(A)(ii), at levels sufficient to 
                        ensure [the solvency of the Fund, 
                        including operating expenses] 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).
                          (ii) Review and approval.--Before 
                        making any changes to the established 
                        amounts and terms of repayment, the 
                        Administrator shall conduct a review 
                        and obtain approval from the Director.
                  (C) Failure to make timely reimbursement.--
                The Administrator may obtain reimbursement from 
                an agency under this paragraph by the issuance 
                of transfer and counterwarrants, or other 
                lawful transfer documents, supported by 
                itemized bills, if payment is not made by the 
                agency during the 90-day period beginning after 
                the expiration of a repayment period described 
                in a written agreement described in paragraph 
                (6).
          (6) Written agreement.--
                  (A) In general.--Before the transfer of funds 
                to an agency under [subparagraphs (A) and (B) 
                of paragraph (3)] paragraph (3)(A)(i) and 
                before any services or work are provided under 
                paragraph (3)(A)(ii)(I), the Administrator, in 
                consultation with the Director, and the head of 
                the agency shall enter into a written 
                agreement--
                          (i) documenting the purpose for which 
                        the funds will be used and the terms of 
                        repayment, which may not exceed 5 years 
                        [unless approved by the Director; and];
                          (ii) which shall include terms of 
                        repayment 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 
                        repayment that require the head of the 
                        agency to fully reimburse the Fund for 
                        any services or work provided under 
                        paragraph (3)(A)(ii) in direct support 
                        of the project; and
                          [(ii)] (iv) which shall be recorded 
                        as an obligation as provided in 
                        paragraph (5)(A).
                  (B) Requirement for use of incremental 
                funding, commercial products and services, and 
                rapid, iterative development practices.--The 
                Administrator shall ensure--
                          [(i) for any funds transferred to an 
                        agency under paragraph (3)(A), in the 
                        absence of compelling circumstances 
                        documented by the Administrator at the 
                        time of transfer, that such funds shall 
                        be transferred only on an incremental 
                        basis, tied to metric-based development 
                        milestones achieved by the agency 
                        through the use of rapid, iterative, 
                        development processes; and]
                          (i) for any funds transferred to an 
                        agency under paragraph (3)(A)(i), in 
                        the absence of compelling circumstances 
                        documented 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 processes; and
                                  (II) after the head of the 
                                agency has provided the 
                                Director any information the 
                                Director is required to report 
                                pursuant to paragraph 
                                (7)(A)(i); and
                          (ii) that the use of commercial 
                        products and services are incorporated 
                        to the greatest extent practicable in 
                        activities funded under [subparagraphs 
                        (A) and (B) of paragraph (3)] paragraph 
                        (3)(A)(i), and that the written 
                        agreement required under [paragraph 
                        (6)] this paragraph documents this 
                        preference.
          (7) Reporting requirements.--
                  (A) List of projects.--
                          (i) In general.--Not later than 6 
                        months after the date of enactment of 
                        this Act, the Director shall maintain a 
                        list of each project funded by the 
                        Fund, to be updated not less than 
                        quarterly, that includes a description 
                        of the project, the written agreement 
                        entered into under paragraph (6), 
                        project status (including any schedule 
                        delay and cost overruns), financial 
                        expenditure data related to the 
                        project, and the extent to which the 
                        project is using commercial products 
                        and services, including if applicable, 
                        a justification of why commercial 
                        products and services were not used 
                        (including documented market research 
                        into commercial products and services) 
                        and the associated development and 
                        integration costs of custom 
                        development.
                          (ii) Public availability.--The list 
                        required under clause (i) shall be 
                        published on a public website in a 
                        manner that is, to the greatest extent 
                        possible, consistent with applicable 
                        law on the protection of classified 
                        information, sources, and methods.
                  (B) Comptroller general reports.--Not later 
                than 2 years after the date of enactment of 
                this Act, and every 2 years thereafter, the 
                Comptroller General of the United States shall 
                submit to Congress and make publically 
                available a report assessing--
                          (i) the costs associated with 
                        [establishing] the Fund and maintaining 
                        the oversight structure associated with 
                        the Fund compared with [the cost 
                        savings associated with the projects 
                        funded both annually and over the life 
                        of the acquired products and services 
                        by the Fund;] the amount repaid to the 
                        Fund in accordance with the terms 
                        established in the written agreements 
                        described in paragraph (6);
                          (ii) the [reliability of the cost 
                        savings] total cost savings estimated 
                        by agencies associated with projects 
                        funded by the Fund[;]; and
                          (iii) whether agencies receiving 
                        transfers of funds from the Fund used 
                        full and open competition to acquire 
                        the custom development of information 
                        technology products or services[; and].
                          [(iv) the number of IT procurement, 
                        development, and modernization 
                        programs, offices, and entities in the 
                        Federal Government, including 18F and 
                        the United States Digital Services, the 
                        roles, responsibilities, and goals of 
                        those programs and entities, and the 
                        extent to which they duplicate work.]
  (c) Technology Modernization Board.--
          (1) Establishment.--There is established a Technology 
        Modernization Board to evaluate proposals submitted by 
        agencies for funding authorized under the Fund.
          (2) Responsibilities.--The responsibilities of the 
        Board are--
                  (A) to provide input to the Director for the 
                development of processes for agencies to submit 
                modernization proposals to the Board and to 
                establish the criteria by which those proposals 
                are evaluated, which shall include--
                          (i) the ability for the head of the 
                        agency to ensure repayment of funds 
                        transferred from the Fund to the head 
                        of the agency, in accordance with 
                        subsection (b);
                          [(i)] (ii) addressing the greatest 
                        security, privacy, and operational 
                        risks;
                          [(ii)] (iii) having [the greatest 
                        Governmentwide impact; and] the 
                        greatest impact on modernizing, 
                        retiring, or replacing Federal legacy 
                        information technology systems; and
                          [(iii)] (iv) having a high 
                        probability of success based on factors 
                        including a strong business case, 
                        technical design, consideration of 
                        commercial off-the-shelf products and 
                        services, procurement strategy 
                        (including adequate use of rapid, agile 
                        iterative software development 
                        practices), and program management;
                  (B) to make recommendations to the 
                Administrator to assist agencies in the further 
                development and refinement of select submitted 
                modernization proposals, based on an initial 
                evaluation performed with the assistance of the 
                Administrator;
                  (C) to review and prioritize, with the 
                assistance of the Administrator and the 
                Director, modernization proposals based on 
                criteria established pursuant to subparagraph 
                (A);
                  (D) to identify, with the assistance of the 
                Administrator, opportunities [to improve or 
                replace multiple information technology 
                systems] to modernize, retire, or replace 
                legacy information technology systems under 
                subsection (b)(3)(A)(i) with a smaller number 
                of information technology services common to 
                multiple agencies;
                  (E) to recommend the funding of modernization 
                projects, in accordance with the uses described 
                in subsection (b)(3), to the Administrator;
                  (F) to monitor, in consultation with the 
                Administrator, progress and performance in 
                executing approved projects and, if necessary, 
                recommend the suspension or termination of 
                funding for projects based on factors including 
                the failure to meet the terms of a written 
                agreement described in subsection (b)(6) or the 
                identification of fraudulent or misleading 
                statements 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
                  (G) to monitor the operating costs of the 
                Fund 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) Membership.--The Board shall consist of 7 voting 
        members.
          (4) Chair.--The Chair of the Board shall be the 
        Administrator of the Office of Electronic Government.
          (5) Permanent members.--The permanent members of the 
        Board shall be--
                  (A) the Administrator of the Office of 
                Electronic Government; and
                  (B) a senior official from the General 
                Services Administration having technical 
                expertise in information technology 
                development, appointed by the Administrator, 
                with the approval of the Director[.]; and
                  (C) a senior official from the Cybersecurity 
                and Infrastructure Security Agency of the 
                Department of Homeland Security, appointed by 
                the Director of the Cybersecurity and 
                Infrastructure Security Agency, with the 
                approval of the Director of the Office of 
                Management and Budget.
          (6) Additional members of the board.--
                  (A) Appointment.--The other members of the 
                Board [shall be--] shall be 4 employees of the 
                Federal Government primarily having technical 
                expertise in information technology 
                development, financial management, 
                cybersecurity and privacy, and acquisition, 
                appointed by the Director.
                          [(i) 1 employee of the National 
                        Protection and Programs Directorate of 
                        the Department of Homeland Security, 
                        appointed by the Secretary of Homeland 
                        Security; and
                          [(ii) 4 employees of the Federal 
                        Government primarily having technical 
                        expertise in information technology 
                        development, financial management, 
                        cybersecurity and privacy, and 
                        acquisition, appointed by the 
                        Director.]
                  (B) Term.--Each member of the Board described 
                in paragraph (A) shall serve a term of 1 year, 
                which shall be renewable not more than 4 times 
                at the discretion of the appointing Secretary 
                or Director, as applicable.
          (7) Prohibition on compensation.--Members of the 
        Board may not receive additional pay, allowances, or 
        benefits by reason of their service on the Board.
          (8) Staff.--Upon request of the Chair of the Board, 
        the Director and the Administrator may detail, on a 
        reimbursable or nonreimbursable basis, any employee of 
        the Federal Government to the Board to assist the Board 
        in carrying out the functions of the Board.
  (d) Responsibilities of Administrator.--
          (1) In general.--In addition to the responsibilities 
        described in subsection (b), the Administrator shall 
        support the activities of the Board and provide 
        technical support to, and, with the concurrence of the 
        Director, oversight of, agencies that receive transfers 
        from the Fund.
          (2) Responsibilities.--The responsibilities of the 
        Administrator are--
                  (A) to provide direct technical support in 
                the form of personnel services or otherwise to 
                agencies transferred amounts under [subsection 
                (b)(3)(A) and for products, services, and 
                acquisition vehicles funded under subsection 
                (b)(3)(B)] subsection (b)(3);
                  (B) to assist the Board with the evaluation, 
                prioritization, and development of agency 
                modernization proposals.
                  (C) to perform regular project oversight and 
                monitoring of approved agency modernization 
                projects, in consultation with the Board and 
                the Director, to increase the likelihood of 
                successful implementation and reduce waste 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); and
                  (D) to provide the Director with information 
                necessary to meet the requirements of 
                subsection (b)(7).
  (e) Responsibilities of the Federal Chief Information 
Officer; Agency Chief Information Officers.--
          (1) Agency inventory.--An agency Chief Information 
        Officer, in coordination with stakeholders 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 Reform Act of 
                2023, a list of high-risk legacy information 
                technology systems used, operated, or 
                maintained 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 
                provided 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 Reform Act of 
                2023, compile a Legacy Federal IT Inventory on 
                the basis of the each list provided by an 
                agency Chief Information Officers under 
                paragraph (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 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 
                        Information 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 information 
                        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 
                        Information Officer receives updates 
                        under paragraph (1)(B) from each agency 
                        Chief Information Officer, update the 
                        list required by subparagraph (A) on 
                        the basis of each updates to the list 
                        provided by agency Chief information 
                        Officers under paragraph (1)(B).
                  (B) Report to congress.--Not later than 14 
                days after the date on which the Federal Chief 
                Information Officer compiles the list required 
                by subparagraph (A), or updates such list, the 
                Director shall submit to the Committee on 
                Oversight and Accountability 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 requirements 
                of this subsection that shall, at a minimum--
                          (i) prescribe an appropriate format 
                        for list to be provided under paragraph 
                        (1)(A);
                          (ii) prescribe the information to be 
                        included in the Legacy Federal IT 
                        Inventory required by paragraph (2);
                          (iii) provide guidance on how an 
                        agency Chief Information Officer should 
                        identify high-risk legacy information 
                        technology systems that, at least, 
                        requires agency Chief Information 
                        Officers, in coordination with other 
                        agency stakeholders, to identify as a 
                        high risk legacy information technology 
                        system any outdated or obsolete 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 impact the ability of the 
                        agency to perform the mission of the 
                        agency, effectively deliver 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).
                  (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 officer.--The 
                term ``agency Chief Information Officer'' means 
                a Chief Information Officer designated under 
                section 3506(a)(2) of title 44, United States 
                Code.
                  (B) Federal chief information officer.--The 
                term ``Federal Chief Information Officer'' 
                means the Administrator of the Office of 
                Electronic Government.
  [(e)] (f) Effective Date.--This section shall take effect on 
the date that is 90 days after the date of enactment of this 
Act.
  [(f)] (g) Sunset.--
          (1) In general.--[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),] After December 31, 2030, 
        the Administrator may not award or transfer funds from 
        the Fund for any project that is not already in 
        progress as of such date.
          (2) Transfer of unobligated amounts.--Not later than 
        90 days after the date on which all projects that 
        received an award from the Fund are completed, any 
        amounts in the Fund shall be transferred to the general 
        fund of the Treasury and shall be used for deficit 
        reduction.
          (3) Termination of technology modernization board.--
        Not later than 90 days after the date on which all 
        projects that received an award from the Fund are 
        completed, the Technology Modernization Board and all 
        the authorities of subsection (c) shall terminate.

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