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On Tuesday, U.S. Senator Jerry Moran’s (R-Kan.) Modernizing Government Technology (MGT) Act was signed into law by President Trump as part of the conference report for the National Defense Authorization Act (NDAA) for FY2018. This bipartisan legislation – introduced along with U.S. Senator Tom Udall (D-N.M.) – encourages federal agencies to cut wasteful spending and modernize government information technology (IT) and security. Sen. Moran released the following statement after the president signed the legislation into law:

“Today, the president signed into law landmark legislation to reduce wasteful government IT spending and strengthen our nation’s cybersecurity. I applaud the administration and my colleagues on both sides of the aisle for their tireless work to get this legislation signed into law and to bring our inefficient, outdated federal IT system into the 21st century. The improved efficiencies from the MGT Act will empower agencies to modernize their legacy IT systems, better protect our data from cyber-attacks and ultimately save billions in taxpayer dollars by reducing long-term spending.”

The bill was supported by a number of IT industry stakeholders and trade associations, including the U.S. Chamber of Commerce, the IT Alliance for the Public Sector (ITAPS), Professional Services Council (PSC), TechNet, Amazon Web Service, Cisco, Adobe, BMC, Brocade, Intel, Microsoft, Business Roundtable, CA Technologies, Compuware, CSRA, Level 3, Unisys and others.

The MGT Act establishes IT working capital funds at two dozen federal government agencies, allowing them to use savings obtained through streamlining IT systems, replacing legacy products and transitioning to cloud computing for up to three years for further modernization efforts.

Nearly 75% of the $80 billion spent annually on federal IT systems is going toward maintaining and operating legacy IT rather than making lasting improvements.

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