$1B from Technology Modernization Fund Has Produced under $14M in Savings, GAO Says

July 30, 2026 - 23:01

A new report from the Government Accountability Office reveals that the Technology Modernization Fund, which has allocated $1.03 billion to 68 federal IT upgrade projects since its launch in 2018, has generated less than $14 million in documented savings. The fund was created to help agencies replace outdated computer systems and improve cybersecurity, with the promise that modernizing legacy technology would eventually pay for itself.

The GAO found that while many projects are still in progress, the actual financial returns have fallen far short of initial projections. Agencies had originally estimated that the upgrades would save hundreds of millions of dollars over time. However, the report notes that only a handful of completed projects have produced measurable cost reductions, and those amounts are modest compared to the total investment.

Some of the challenges include slow implementation, shifting project scopes, and difficulty tracking savings across different agency budgets. The GAO also pointed out that several projects have not yet reached the stage where savings can be calculated, leaving a large portion of the fund's impact unknown.

The Technology Modernization Fund was designed as a revolving fund, meaning agencies would repay the money from their savings, allowing it to be reused for future projects. With current returns so low, the fund's ability to sustain itself is now in question. Lawmakers have expressed frustration, calling for stricter oversight and clearer performance metrics before additional money is released.