Industry group calls for small, independent federal agencies to receive working capital fund authority

ADI says the greater funding flexibility would allow all government agencies to take on larger, enterprise-wide IT modernization projects.
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The Alliance for Digital Innovation has called on lawmakers to extend working capital fund authority to small and independent agencies.

In a letter sent Wednesday, the tech industry group said that such a move would give every agency across government greater flexibility to undertake bigger, enterprisewide projects IT projects.

“ADI appreciates the flexibility given to several agencies to leverage their working capital funds as part of the FY 2022 omnibus. We encourage the committee to continue these efforts and allow all agencies to leverage their working capital funds for technology modernization as the committee finalizes the FY 2023 appropriations bills,” the trade group said.

Working capital funds were authorized for CFO Act agencies in 2017. The Modernizing Government Technology Act allows appropriations committees to give agencies greater flexibility to set aside unused funds for future projects and to provide multi-year funding.


Advocates for the funding structure say it can help promote long-term thinking within federal IT procurement by providing a degree of isolation from multi-year appropriation cycles.

In its letter setting out the group’s priorities for fiscal 2023, ADI reiterated previous calls for Congress to meet or exceed President Biden’s request for an additional $300 million for the Technology Modernization Fund.

ADI added also that it would support an increase in the amount and cap of the Federal Citizen Services Fund, which supports some of the biggest programs driving innovation and security compliance.

“The administration has requested $116 million for the fund, which is more than double its current budget. ADI supports this request and encourages the committee to meet or exceed that number,” it added.

John Hewitt Jones

Written by John Hewitt Jones

John is the managing editor of FedScoop, and was previously a reporter at Institutional Investor in New York City. He has a master’s degree in social policy from the London School of Economics and his writing has appeared in The Scotsman and The Sunday Times of London newspapers.

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