Former Feds See Budgeting Reforms, Congressional Focus as Key to IT Modernization in 2026

Panelists broadly agreed that while artificial intelligence will remain part of the federal conversation, it is no longer the singular organizing principle it was in earlier years. Instead, attention is shifting toward execution. Agencies are moving from pilots to production environments, confronting hard questions about return on investment, duplication of tools and long-term operational costs.

As budgets flatten or decline, the tolerance for experimentation without measurable value is narrowing, placing pressure on chief information officers and acquisition officials to justify spending decisions with clearer performance metrics.

Budgeting constraints were a recurring theme. Several experts pointed to the mismatch between static annual appropriations and the realities of multi-year technology programs. Long procurement timelines, coupled with rapid technological change, create a structural risk that agencies will continue funding underperforming systems simply because sunk costs are already on the books.

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Without reforms that allow agencies to reallocate resources based on outcomes rather than inertia, panelists warned that cost-cutting efforts in 2025 could yield only temporary savings rather than durable efficiencies

Congressional action, or the lack of it, loomed large over the discussion. Panelists highlighted several initiatives stalled on Capitol Hill that could significantly shape IT procurement if enacted. Among them is the Strengthening Agency Management and Oversight of Software Assets Act (SAMOSA), which would require agencies to produce more rigorous data on software inventories and spending. Advocates argue that such reporting would give the General Services Administration, the Office of Management and Budget and lawmakers the visibility needed to push enterprise-wide reforms rather than incremental cost reductions.

Equally significant is the uncertain future of the Technology Modernization Fund. Once viewed as a bipartisan vehicle for jump-starting legacy system upgrades, Congress’ failure to reauthorize the fund has left the group to question Capitol Hill’s commitment to long-term IT modernization. Several panelists suggested that without renewed legislative backing, agencies will struggle to finance large-scale transformations and instead rely on piecemeal fixes that defer, rather than resolve, systemic risks.

Personnel challenges may prove even more consequential than budget politics. Former executives described a federal IT workforce under strain from return-to-office mandates, workforce reductions and increased competition from the private sector. The result, they said, is a disproportionate loss of mid-career technologists who possess both institutional knowledge of legacy systems and fluency in cloud, cybersecurity and data platforms.

The Trump administration’s proposed federal Tech Force initiative was cited as a potential counterweight to these trends, but panelists cautioned that its success is far from assured. While injecting highly skilled technologists into government programs could raise expectations for speed and technical rigor, it may also reshape acquisition practices in ways that challenge traditional vendors and contracting models.

Acquisition reform also remains unfinished business. The panelists pointed to missed opportunities in recent defense authorization legislation to harmonize civilian and defense procurement rules. Efforts such as GSA’s OneGov initiative and the new Office of Centralized Acquisition Services reflect a push toward consolidation and standardization, but panelists emphasized that contract aggregation without disciplined demand forecasting and requirements definition may fail to deliver promised savings.

Looking ahead, many panelists suggested that the defining concept for 2026 will not be cost cutting alone, but the ability to balance efficiency with resilience. Agencies are being asked to modernize while absorbing shocks from budget uncertainty, workforce churn and escalating cyber threats. In that environment, success will be measured less by how much technology is acquired and more by whether it delivers secure, compliant and mission-critical value at scale.