Unlocking Government Efficiency Through IT Modernization

House Subcommittee on Cybersecurity, Information Technology, and Government Innovation

2025-04-29

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Source: Congress.gov

Summary

The Subcommittee on Cybersecurity, Information Technology, and Government Innovation convened to discuss the urgent need for federal IT modernization and the progress made in this area, along with associated challenges and proposed solutions.[ 00:38:27-00:39:03 ]

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 The discussion highlighted the criticality of modernizing government technology to enhance efficiency, strengthen cybersecurity, and improve public services.[ 00:39:25 ]

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Themes

The Critical Need for Federal IT Modernization

Federal IT systems are the backbone of government operations, from national defense to benefit programs, with over $100 billion spent annually on IT, nearly 80% of which goes to maintaining outdated legacy systems.[ 00:39:38-00:39:58 ]

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 These systems, often built on unsupported software or coding languages like COBOL, create significant security and operational risks and are costly to maintain.[ 00:40:09 ]

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 The Government Accountability Office (GAO) has repeatedly warned about federal reliance on these vulnerable systems, emphasizing that modernization is a top priority.[ 00:40:21 ]

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 Modernizing these systems is seen as essential to strengthening cybersecurity infrastructure, improving customer service, and keeping pace with the rapidly evolving cyber landscape.[ 00:41:58 ]

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Barriers to Effective IT Modernization

Several significant barriers hinder federal IT modernization efforts, including a lack of committed and reliable funding sources, gaps in technology talent, and complicated procurement processes. Witnesses also identified a lack of senior leadership support and insufficient partnership from business units as major obstacles, as technology modernization must be tied to service outcomes. The tendency for agencies to customize solutions rather than adopt standardized, best-practice approaches also leads to wasteful spending and delays.[ 01:27:54-01:28:04 ]

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The Role and Impact of the Technology Modernization Fund (TMF)

The Modernizing Government Technology Act of 2017 established the Technology Modernization Fund (TMF) as a crucial funding vehicle to improve, retire, or replace federal IT systems, providing a multi-year funding mechanism for transformation projects. The TMF supports projects that enhance cybersecurity, improve customer experience, and increase operational efficiency, with preference given to initiatives addressing government-wide issues and adopting shared services. Successful TMF projects include modernizing systems at HUD, DHS, CBP, and the Department of Energy, demonstrating the fund's effectiveness in driving cross-government modernization.

Concerns Regarding the Department of Government Efficiency (DOGE)

While some praise DOGE's intent to modernize, significant concerns were raised about its methods and impact. Critics allege that DOGE's actions have led to chaos, broken systems, and the layoff of critical IT and cybersecurity experts, particularly at agencies like CISA, NIST, DHS, and 18F.[ 00:42:44 ]

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 There are claims of data integrity issues, unauthorized centralization of sensitive data into a "mega database," and the potential misuse of unvetted AI tools, raising alarms about privacy and national security risks.

The Importance of a Skilled Federal IT Workforce

A skilled and capable IT workforce is considered essential for successful modernization, cybersecurity, and the overall effectiveness of federal systems.[ 00:41:58 ]

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 The elimination of key technical teams, such as 18F, and extensive probationary employee cuts across federal agencies, including IT and cybersecurity experts, are seen as undermining hard-earned progress and creating a "brain drain."[ 00:42:52 ]

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 Attracting and retaining top tech talent in government is challenging, especially given current morale issues, making oversight and upholding legal safeguards critical to rebuilding trust.

The Potential and Responsible Use of AI

Advanced technologies, including artificial intelligence, offer transformative potential for identifying, accelerating, and streamlining modernization projects. AI can be used for rapid code refactoring, identifying cyber anomalies, and guarding against fraud. However, its application requires responsible implementation, understanding of the mission, data integrity, and people who understand the technology, to ensure security and prevent issues like "hallucinations" or replacing necessary human interaction in critical services.

Tone of the Meeting

The tone of the meeting was largely serious and concerned, reflecting the critical nature of federal IT modernization and its implications for national security and public services.[ 00:38:46 ]

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 While there was bipartisan agreement on the urgent need for modernization and the importance of supporting initiatives like the TMF,[ 00:42:03 ]

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 a significant divergence emerged regarding the approach and impact of the Department of Government Efficiency (DOGE). Democratic members and Ms. Meyer expressed strong alarm and criticism, describing DOGE's actions as "chaos" and a "heist" that threatens data privacy and undermines the federal workforce. Republican members, conversely, acknowledged the need for modernization and defended DOGE's efforts to root out waste and improve efficiency. Overall, the meeting conveyed a sense of urgency, coupled with sharp disagreement over current governmental strategies for achieving IT modernization.

Participants

Transcript

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The Subcommittee on Cybersecurity, Information Technology, and Government Innovation will come to order and welcome everyone.  Without objection, the chair may declare a recess at any time, and I recognize myself for the purpose of making an opening statement.  Good afternoon, and thank you for joining us for this discussion on federal IT modernization.   An important role of this subcommittee is to ensure proper management of federal technology.  The Trump administration and the U.S.  DOGE service and their efforts to make the government more efficient have prioritized modernizing government technology because they have rightly identified federal IT as the backbone for all government programs, operations, and of course spending.   Federal IT systems enable everything the government does, from the national defense and homeland security to the administration of benefit programs.  And when these systems are outdated, obsolete, and unreliable, the government cannot carry out these duties responsibly or efficiently.  The federal government spends more than $100 billion annually on IT systems, with almost 80% of the spending going toward operating and maintaining them, including   many legacy systems.  These legacy systems, which are built on unsupported software or hardware and rely on outdated data centers or coding languages such as COBOL, a language I learned 25 years ago plus, create dangerous security and operational environments and are costly to maintain.   A few years ago, GAO compiled a list of the 10 federal IT systems most in need of overhaul due to their criticality and their obsolescence.  One is a COBOL-based system used to process about 20 million federal student financial and aid applications annually.  The system is older than the Department of Education, which opened its doors in 1980.   I learned COBOL early in my career because coding provides a pathway for girls and women to advance into STEM fields.  I actually taught myself to code.  But today's aspiring coders are not learning COBOL.  That's why on his first day in office, President Trump signed Executive Order 14158, titled Establishing and Implementing the President's Department of Government Efficiency.
This executive order established DOGE through a reorganization of what was formerly known as the U.S.  Digital Service, an entity this subcommittee has collaborated with on a bipartisan basis for many years to promote IT modernization.  The Trump executive order includes a requirement for the U.S.  DOGE service to work with agency heads to promote interoperability between agency networks and systems, ensure data integrity, and facilitate responsible data collection and synchronization.   This directive prioritizes efforts aligned with long-time industry best practices and expert recommendations for IT modernization.  It also elevates the work USDS has been doing across the three previous administrations under Presidents Obama, Trump, and Biden.   Today, we're here to celebrate the progress that has been made to modernize government technology, review the approaches that have worked, and discuss how the current Trump administration and the renewed USDS can aggressively prioritize proven solutions so we can finally make real progress in building efficient and effective federal IT.  To this end, we're joined by three of the most senior technology leaders from the first Trump administration.   Ms.  Kent, Ms.  Graves, and Ms.  Roat, you served at the beginning of the COVID-19 pandemic and helped oversee the start of the federal government shift to remote work.  During this time, we learned a lot of processes were also paper-based and arcane.  They couldn't be carried out digitally, which is a wild and crazy   fact that this was happening.  The lack of resiliency in government operations created drastic consequences for our constituents who couldn't connect with government offices to receive benefits or file required paperwork.  I'm looking forward to hearing from you all today about what you learned during this unique time in your government service.   and it's my understanding that this is your first time all testifying together on the same panel.  Thanks for being here today.  Speaking of proven solutions, during the Trump administration, the Modernizing Government Technology Act of 2017 was signed into law.
This act established the Technology Modernization Fund, or TMF, which creates a unique funding vehicle that can be used to improve, retire, or replace federal IT systems.  The TMF is a necessary piece of IT modernization puzzle.   Without it, the unpredictability and the annual budget cycle would make it too difficult for some modernization projects to get off the ground.  Last week, I reintroduced the Modernizing Government Technology Reform Act alongside Oversight Committee Ranking Member Jerry Connolly.

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