Larry Bafundo steps down as TMF director

Larry Bafundo is stepping down from his role as executive director of the Technology Modernization Fund within the General Services Administration, he announced publicly Friday.

GSA acting Administrator Stephen Ehikian confirmed in a statement to FedScoop that Bafundo left the role effective Friday “to pursue other opportunities” and that Jessie Posilkin will be acting executive director, a role she’s filled before.

Bafundo, an alumnus of GSA’s 18F and former director of modernization at the Department of Labor, stepped into the role in July, filling a vacancy left by Raylene Yung, who departed government in October 2023. He previously served as the TMF’s deputy executive director before being promoted to the top role.

Ehikian credited Bafundo’s leadership of the TMF with $1.2 billion in projected cost savings by helping “innovate across government through investments in artificial intelligence, shared services, and cybersecurity.”

“Every day, the TMF delivers tremendous value for the millions of people we serve — and I know they will continue to help agencies reimagine and transform the way they use technology to deliver services to Americans in rapid, cost-effective ways,” Ehikian said.

Bafundo’s departure comes amid major cuts to the GSA tech workforce and other seismic shifts for the agency’s mission operations led by the newly seated Trump administration and the Elon Musk-led Department of Government Efficiency, which has embedded surrogates within the agency. 

While Bafundo credits the TMF model for taking aim to reform government technology procurement processes to support modernization, the work “is about more than just technology — it requires changing complex systems,” he wrote in a LinkedIn post publicly announcing his departure. 

“Many of the toughest challenges don’t fit into a two- or four-year political cycle. And while technology can be a powerful lever, real change often depends on better policy,” he wrote. “This is because too often, government programs aren’t designed to deliver value; they are designed to deliver on political compromise. Addressing these root-cause issues requires sustained investment and long-term commitment.”

Bafundo called the targeted negativity toward public servants in recent weeks “disheartening.”

Speaking to that negative public perception, he added: “Are there opportunities to improve? Yes. But for the most part, public servants are smart, tenacious, and dedicated people who work every day to make the country better. They’re also your neighbors, family members, and friends.”

The TMF itself faces a crossroads, facing funding uncertainty as the program has nearly spent the $1 billion it received during the Biden administration from the American Rescue Plan Act. While many have been favorable of the model as a way to fund federal modernization projects in small increments outside of normal appropriations cycles, lawmakers have been historically critical of its repayment structure, which GSA last year took measures to remediate. 

As TMF leader, Bafundo was confident that the model was the right approach to tackling federal modernization funding and told FedScoop last fall that he was looking forward to using lessons learned during the fund’s existence to inform “the next chapter.”

However, when asked what the TMF needed from legislators to continue to be successful, Bafundo pointed to “sustained funding.”

“The TMF is grateful for the ARP funds that allowed us to ensure we meet the needs of agencies in areas such as CX, cybersecurity and more, but without further appropriations and support, we are limited in the continued impact we can make,” he told FedScoop.

In his statement on Bafundo’s departure, Ehikian said: “OMB will continue to provide expertise in the federal budgeting process, policy, and regulations. The TMF Board of experienced federal technology executives will continue investigating where to invest the fund’s dollars, monitor progress and performance of TMF investments, and offer their expertise to federal agencies looking to modernize and innovate.”