GSA sticks with plan to use agencies’ leftover money to fund TMF in 2027
The General Services Administration is lobbying once again to rely on the transfer of unobligated appropriations from other agencies to support projects under the Technology Modernization Fund.
The Trump administration included a provision in its fiscal 2027 budget justification for GSA “to collect up to $100 million in funding that would otherwise be unavailable for obligation from other agencies and bring that funding into the TMF.”
The proposed funding mechanism comes after GSA included similar but broader language in its fiscal 2026 justification, calling for “both currently available funding and unobligated balances of expired discretionary funds from other agencies [to] be transferred into the TMF.”
Ultimately, the appropriations laws passed by Congress for 2026 included a pair of statutes that allowed for those transfers to happen with limits — though it’s unclear how or if GSA has used the authority. It also gave the TMF a $5 million plus-up and extended the fund’s authorization through the end of fiscal 2026.
GSA did not respond to FedScoop’s request for comment before publication.
In its 2027 justification, GSA cited those statutes as the foundation on which it modeled its proposed provision. However, the latest iteration narrows the authority to allow for transferring only “funds that are otherwise no longer available to them for obligation” and no longer includes “currently available funding.”
“This provision is essential to providing the TMF with the necessary funds to help the Federal Government address critical technology challenges by modernizing high-priority systems, improving AI adoption, and supporting cross-Government collaboration and scalable services,” GSA’s budget justification explains.
The White House has faced perennial challenges in soliciting new TMF funds through appropriations. This provision, along with more stringent repayment requirements, gives the TMF a path forward if Congress continues to hold back support for the fund.
Appropriations or not, GSA said it’s “committed to long-term financial sustainability while meeting the growing demand from agencies tackling critical technology infrastructure investments.”
“To further strengthen the TMF’s ability to help agencies kickstart or accelerate their urgent modernization efforts, GSA and OMB are committed to exploring alternative funding mechanisms. This includes the new Government-wide general provision proposed in the President’s Budget to allow the TMF to accept unobligated balances of expired discretionary funds,” the 2027 justification reads. “By responsibly managing existing resources, the TMF is positioned to deliver lasting value to the American people and enhance the efficiency and effectiveness of Government services.”
This all, of course, hinges on the TMF being authorized for 2027 — another battle the administration and congressional supporters on the Hill will have to fight and win before the fund’s current authorization expires Sept. 30.
“GSA and OMB are actively working with Congress to reauthorize the TMF beyond September 30th, 2026 … so that it can continue its critical work of driving digital transformation and IT modernization across the Federal Government,” the justification said.
