Members of the House Appropriations Financial Services and General Government Subcommittee (FSGG) are funding several artificial intelligence and cyber efforts in their draft appropriations bill released Sunday night for the upcoming fiscal year.
We read through the 204–page draft, so you don’t have to – here is what they are funding and how much each agency could receive under the FSGG appropriations bill.
Department of the Treasury’s Cybersecurity Enhancement Account
Under its Cybersecurity Enhancement Account (CEA) – a centralized fund for the Department of the Treasury (DoT) used to fund cybersecurity efforts and strengthen U.S. financial infrastructure – the department would also be given $99 million to cover the salaries and expenses required for “enhanced cybersecurity” measures for systems operated by the department.
Of the $99 million, $7 million would go toward the department’s chief information officer to cover “administrative expenses.”
Expenses related to automatic data processing equipment, software and services, and repairs and renovations for buildings owned by DoT would be provided $9.4 million through September 2028, according to the bill’s draft, while the Bureau of the Fiscal Service would receive $8 million for IT system modernization.
The IRS would receive $35 million for investigative technology for its Criminal Investigation Division, while $3.75 billion would go toward necessary technology and operations support.
The republicans’ draft also banned any funding going toward the tax agency’s Direct File, a program first piloted during the 2024 tax season that allowed hundreds of thousands of American taxpayers to file their tax returns electronically. The program was made permanent in May 2024, though it remained controversial with Republicans, with the Trump administration’s reconciliation bill ultimately directing the agency to explore alternative options.
One provision directs the secretary of the Treasury Department to report plans for the Federal government’s holding of digital assets it acquires, including cybersecurity protocols and interagency procedures for handling digital assets. The secretary will have 90 days from the bill’s passing to do so.
Outside of the CEA, the Department of the Treasury would receive $34 million for several modernization and cybersecurity projects, including for the department-wide financial audit and for its Internal Control Program, which oversees the efficiency of internal controls used to meet operational and financial goals.
That $34 million would also go in part to general IT system modernization and the development and implementation of programs within the Treasury’s Office of Cybersecurity and Critical Infrastructure Protection, the department’s sector risk management arm for the financial services sector.
Executive, Judicial, and Agency Cyber Initiatives
Within the executive branch, the Office of Administration would receive up to $12.8 million to continue modernizing its information resources, while the Office of the National Cyber Director (ONCD) is set to receive $18.1 million for its salaries and expenses.
The judiciary branch would be provided with $74 million from its $6.07 billion operating budget to advance its multi-year cybersecurity and IT modernization plan, while another $892 million would support court security, including procurement and maintenance of security systems at Federal courts.
The National Archives would receive $30 million out of its $400 million operating budget to enhance the government’s capacity to manage and preserve digital records.
Of the $195.7 million allocated for Office of Personnel Management salaries and expenses, $10.7 million is designated for IT modernization.
The General Services Administration can use up to $1.5 million of appropriated funds for case management system upgrades. The agency’s Working Capital Fund would receive $4 million to modernize Federal rulemaking systems, and the Federal Citizen Services Fund would receive $55 million to expand electronic government services.
The Election Assistance Commission would receive $1.5 million for the National Institute of Standards and Technology to support election reform and get another $15 million in election security grants that would require states to match by 20 percent within two years.
Beyond appropriations, the FSGG draft would block the Federal Communications Commission from funding changes to broadband service standards or digital discrimination rules and would restrict funding for the Federal Trade Commission’s collaboration with international regulators on IT-related matters.
Agency chief information officers (CIOs) would be given $32 million for interagency funding of government-wide IT and management initiatives, while including additional reporting requirements. CIOs of agencies funded by the FSGG bill also have the authority to have input in decisions on budgeting for IT systems, according to the bill text.
AI-related initiatives include the Pandemic Response Accountability Committee receiving $5.45 million to improve oversight.gov and expand its data analytics capabilities, such as its AI-driven fraud detection. The Office of Terrorism and Financial Intelligence would be given $500,000 to test the deployment of AI systems to strengthen sanctions enforcement and detect foreign economic influence by adversarial nations.