OMB Memorandum M-18-12: Implementation of the Modernizing Government Technology Act

From: OMB Memorandum M-18-12


FROM: Mick Mulvaney, Director

SUBJECT: Implementation of the Modernizing Government Technology Act

The Modernizing Government Technology (MGT) Act is a key component of this Administration’s continued efforts to improve Federal technology by providing financial resources and technical expertise to agencies. The MGT Act will allow agencies to invest in modem technology solutions to improve service delivery to the public, secure sensitive systems and data, and save taxpayer dollars. This memorandum sets forth Administration objectives and necessary actions agencies should take in order to implement the MGT Act.


The MGT Act was enacted as part of the Fiscal Year 2018 National Defense Authorization Act (NDAA) on December 12, 2017. The MGT Act has two primary provisions that address agency information technology (IT) modernization needs:

  1. The establishment of a centralized Technology Modernization Fund (TMF) and
    Technology Modernization Board (Board); and
  2. The authorization for all CFO Act agencies to establish IT Working Capital Funds (WCFs).

This memorandum provides guidance to all agencies regarding the necessary planning for upcoming TMF activities, including the initial process for submitting project proposals to the Board, additional guidance to CFO Act agencies regarding the administration and funding of IT WCFs, and where to find additional information on topics such as disbursement and repayment process for the TMF funds.

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