GovTechFinance

Trump Admin Sets $75.7B Topline Civilian IT Budget for 2027

FedScoop
FedScoop•Apr 8, 2026

Why It Matters

The budget underscores a renewed federal commitment to technology upgrades while trimming cybersecurity resources, and the TMF funding strategy will dictate how quickly agencies can modernize legacy systems and adopt AI solutions.

Key Takeaways

  • •White House proposes $75.7 B civilian IT budget for FY 2027.
  • •Cybersecurity funding drops slightly to $12.2 B despite overall increase.
  • •VA receives $4.2 B for electronic health record modernization.
  • •GSA seeks $100 M from unobligated agency funds for TMF.
  • •TMF reauthorization needed before September 30 to sustain digital transformation.

Summary

The White House released its FY2027 civilian IT budget, setting a topline of $75.7 billion—up from $67.9 billion in FY2026 and exceeding FY2025 levels. This proposal, though a starting point for congressional negotiations, marks a return to pre‑Trump spending trends.

Overall IT spending rises, yet cybersecurity allocations dip to $12.2 billion, down from $12.5 billion. The Department of Veterans Affairs commands the largest share at $22.2 billion, including a $4.2 billion boost for electronic health‑record modernization; DHS and HHS follow with $11.7 billion and $9.5 billion respectively. Defense IT, a separate $66.1 billion request, is excluded from the civilian tally.

The General Services Administration is lobbying to channel up to $100 million of unobligated agency balances into the Technology Modernization Fund (TMF), narrowing the transfer authority to only funds no longer available for obligation. GSA argues the provision is essential for AI adoption, high‑priority system upgrades, and cross‑government collaboration.

The TMF’s authorization expires on September 30, making reauthorization vital for continued federal digital transformation. Congressional decisions on the TMF and overall IT allocations will shape the pace and scope of modernization across government agencies.

Original Description

After slashing IT spending across civilian federal agencies last year, the White House’s fiscal 2027 budget calls for a return to pre-Trump levels and then some. Though the proposal from President Donald Trump is just a starting point for haggling in Congress over what will ultimately be spent, the summary document released Friday projects $75.7 billion in federal civilian IT spending, up from $67.9 billion in fiscal 2026 and $75.1 billion in fiscal 2025. It doesn’t include the Department of Defense’s IT budget request, which in fiscal 2026 was a whopping $66.1 billion on its own.
The General Services Administration is lobbying once again to rely on the transfer of unobligated appropriations from other agencies to support projects under the Technology Modernization Fund.
Links
• White House sets $75.7B topline IT budget for fiscal 2027 via FedScoop: https://fedscoop.com/white-house-sets-75-7b-topline-it-budget-for-fiscal-2027/
• GSA sticks with plan to use agencies’ leftover money to fund TMF in 2027 via FedScoop: https://fedscoop.com/gsa-sticks-with-plan-to-use-agencies-leftover-money-to-fund-tmf-in-2027/
#whitehouse #governmentbudget #informationtechnology #federal #government #technology #news #technews #governmentnews #federalgovernment #federalagencies #governmentspending #congress #civilian #trumpadministration #gsa #tmf #omb #govtech
Follow The Daily Scoop Podcast on Social Media
About The Daily Scoop Podcast
We discuss the latest news and trends facing government leaders on such topics as technology, management and workforce. The program will explore headlines of the day as well as in depth discussions with top executives in both government and industry.
The Daily Scoop Podcast is released every weekday afternoon. For the latest insights from Washington, you can subscribe to The Daily Scoop Podcast on Apple Podcasts, Soundcloud, and Spotify. https://fedscoop.com/show/the-daily-scoop-podcast/

Comments

Want to join the conversation?

Loading comments...