The Senate Appropriations Committee voted on Thursday to approve fiscal year (FY) 2025 spending legislation that includes $25 million in funding for the Technology Modernization Fund (TMF).

The TMF – which is administered by the General Services Administration (GSA) – was created in 2017 under the Modernizing Government Technology Act to provide money to Federal civilian agencies to undertake tech modernization projects.

The Fiscal Year (FY) 2025 Financial Services and General Government (FSGG) Appropriations Act’s $25 million for the TMF is far less than the $75 million proposed in the Biden administration’s FY2025 budget request. However, it comes in stark contrast to the House appropriations bill for FY2025 which did not include any mention of the TMF.

The committee advanced the measure by a unanimous vote of 27-0, paving the way for a full Senate vote on the funding measure.

“I’m pleased to see this legislation advance out of committee after a productive, bipartisan negotiation,” said Sen. Bill Hagerty, R-Tenn., ranking member of the FSGG Appropriations Subcommittee. “Although work remains to continue to improve this bill, I look forward to the upcoming negotiations as we work to fund the government later this year.”

“These bills will send essential resources back to our communities, and they provide a clear roadmap to fund our government in the coming months as we work to negotiate and pass final bills with the House,” added Sen. Patty Murray, D-Wash., chair of the Senate Appropriations Committee.

Although the committee’s vote to approve the FSGG bill is a positive step for the TMF, the Senate will still need to negotiate with the House on final legislation.

Senate appropriators had proposed a $290 million funding rescission in 2023 while working on the FY2024 funding bill. For FY2024, Congressional appropriators approved no new money for the fund and rescinded $100 million of existing funding.

The TMF received a one-time funding boost of $1 billion under the 2021 American Rescue Plan Act, and as of June had awarded most of that money across 53 projects undertaken by 30 agencies.

“It is essential that Congress provide resources to allow the TMF to continue to meet the growing demand for investments which address constantly evolving technology needs, threats, and advancements so that government can deliver better for the American people,” GSA Administrator Robin Carnahan said in June.

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Grace Dille
Grace Dille
Grace Dille is MeriTalk's Assistant Managing Editor covering the intersection of government and technology.
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