Treasury IT in the FY 2022 Budget Request

Published: July 07, 2021

Federal Market AnalysisBudgetInformation TechnologyTREAS

Treasury is requesting nearly $6B for IT investments for FY 2022, up $553M from FY 2021 estimates.

Treasury is highly dependent on IT to fulfill its mission of stewarding U.S. economic and financial systems.  To support the department’s IT efforts, it is requesting $5.9B for FY 2022. This amount is 10.3% more than the estimated total for FY 2021. The increase is due to upped spending for a number of IRS IT investments, specifically Customer Account Data Engine 2 (CADE 2), IRS Telecommunications Systems and Support (TSS), and Tax Collection Services (TCS).

The budget request includes $829M to support cybersecurity efforts, a 27% increase over FY 2021 enacted levels. The request provides $3.9B for IRS IT investments, a 12.2% increase over FY 2021 levels. It also promotes IRS’ multiyear business systems modernization efforts with $78M to improve the taxpayer experience and modernize IRS systems.

Top IT program investments are below:

Investments with the most DME funding include IRS Customer Account Data Engine 2 (CADE 2) with a total funding request of $270M and Cybersecurity Operations, Risk Management, and Implementation with a total request of $416M.

Treasury plans acquisitions for 68 programs representing $2.8B (47%) of its total IT budget request. The bulk of these acquisitions stem from IRS with acquisitions planned for 43 programs totaling $2.5B.

Top IT priorities across Treasury include modernizing IT infrastructure and business systems, protecting data and systems, and improving the customer experience. IRS, which makes up over 70% of Treasury IT contract spending, is working toward the following priorities through its IT modernization plan: modernizing IRS operations, cybersecurity and data protection, taxpayer experience, and core taxpayer services and enforcement.

Treasury budget and human resources have dwindled over the last 20 years, especially at the IRS. Congress is showing a willingness to boost Treasury resources to improve department effectiveness.

Treasury will continue to rely heavily on contractor support to fulfill its IT needs and requirements. Contractors should look for opportunities to support Treasury IT infrastructure modernization, automation, tax system modernization, human-centered design, and cybersecurity.  

For more information on the FY 2022 President’s Budget Request, please see Deltek’s report “FY 2022 Federal Budget Request: Priorities and Opportunities.”