Select IT Funding Provisions in the Consolidated Appropriations Act of 2026

Published: February 02, 2026

Federal Market AnalysisBudgetHUDInformation TechnologyInformation TechnologyPolicy and LegislationSSADOTTREAS

Congress obligates millions for IT modernization.

The House of Representatives currently plans to vote on Consolidated Appropriations Act of 2026 (aka H.R. 7148) early this week. While industry awaits the outcome, it is worth reviewing the legislation for provisions it contains on information technology (IT) investment. Today’s article summarizes a few of the investments that Congress has authorized and, hopefully, will finalize with the House vote.   

Social Security Agency (SSA)

One of the agencies whose IT investment is called out is the SSA. Congress obligated $14.7B for the agency with the proviso that any unobligated balance at the end of fiscal year 2026 remains available for investment in “information technology and telecommunications hardware and software infrastructure, including related equipment and non-payroll administrative expenses.” These funds will be available until expended, meaning that SSA’s IT budget could be higher than the President requests for FY 2027.

The SSA’s Office of the Inspector General is also called out, with it slated to receive $2.0M for “related hardware and software infrastructure and equipment, and for administrative expenses directly associated with information technology modernization.”

Department of Transportation (DOT)

The DOT has received a lot of attention recently for its evolving effort to modernize the National Airspace System (NAS). IT spending at the department, however, is not related to the NAS alone. To that end, Congress obligated $765M for the DOT’s Working Capital Fund to provide IT services “on a competitive basis to entities within the Department of Transportation.” Making such funding available competitively means it is going to be contractor addressable.

The provision further stipulates that the Secretary of Transportation “may provide non-commodity information technology and procurement services in a consolidated or shared manner for operating administrations through the Working Capital Fund.” The Federal Aviation Administration, the Great Lakes St. Lawrence Seaway Development Corporation, and the Office of Inspector General are not authorized to receive IT services funding through the WCF.

The bill calls out the Federal Motor Carrier Safety Administration (FMCSA) separately, with it slated to receive $63.1M for “development, modernization, enhancement, and continued operation and maintenance of information technology and information management.” These funds are to remain available until expended or until September 30, 2028, meaning that much like the SSA, IT funding at the FMCSA could be higher than any amount formally requested in the upcoming FY 2027 budget.

Housing and Urban Development (HUD)

Congress obligated $345M for department-wide and program-specific information technology systems and infrastructure at HUD, adding that this funding will remain available until September 30, 2028.

Congress also stipulated that the Secretary of HUD may transfer an additional $5.0M from its general funding for salaries and administrative expenses to address “unforeseen information technology needs, including additional development, modernization and enhancement.”

Treasury

Lastly, the Treasury is scheduled to receive $42M for IT modernization and the Treasury-wide Financial Statement, Audit, and Internal Control Program. Congress did not spell out how much funding should go to each, noting only that the funds will remain available until September 30, 2027.