Treasury Seeks $5.1B in FY 2021 IT Funding

Treasury ranks fourth in the list of civilian departments based on its FY 2021 IT budget request.  Only VA, HHS and DHS requested more in IT funding for the next fiscal year.

The total Treasury IT budget for FY 2019 through FY 2021 is shown below, along with the amounts allotted for Development, Modernization and Enhancement (DME), and Operations and Maintenance (O&M).

Treasury’s IT budget request includes $3.1B for IRS investments, which is a 3.7% increase over FY 2020 levels. The requested funding would provide $300M for IRS’ multiyear business systems modernization efforts to improve the taxpayer experience; advance core taxpayer services and enforcement; modernized IRS operations; advance cybersecurity and data protection; and integrate architecture and infrastructure.

The budget request allocates $689M to Treasury for cybersecurity efforts. Specifically, Treasury’s Cybersecurity Enhancement Account (CEA) shows an $18M funding request, which equates to the FY 2020 enacted level. The CEA account identifies and supports department-wide investments for critical IT improvements, including systems identified as High Value Assets (HVAs).

Treasury’s largest IT programs as listed in its IT portfolio request for FY 2021 on the IT Dashboard, include:

• IRS Main Frames and Servers, Services and Support (MSSS), $620M
• IRS Telecommunications Systems and Support (TSS), $469M
• IT Management Investment, $440M
• Cybersecurity Operations, Risk Management & Implementation, $267M

IRS’ Telecommunications Systems and Support (TSS) investment shows an 18% increase over FY 2020 and 24% of the investment for FY 2021 is classified as DME.

The top Treasury investments classified as DME include the IRS Enterprise Case Management System at $75M and Modernized IRS Operations at $50M, both are classified as 100% DME.

Treasury plans acquisitions for 39 programs representing $151M (3%) of its total IT budget request.

Deltek’s Federal Market Analysis team is in the process of analyzing the entire FY 2021 President’s Budget Request.  Watch for our report to be published in mid- March.