The White House is bolstering technology projects across government, dedicating a record $75.7 billion to support IT projects at federal civilian agencies in its budget proposal for fiscal 2027.
Federal News Network reported in April that 12 of the 23 Chief Financial Officers Act non-defense agencies will receive increased funding for IT-related activities. The departments of Veterans Affairs, Justice and Treasury are getting the biggest increases.
Get more information about how federal civilian agencies are investing in technology to enhance operational efficiency, meet growing mission demands and comply with changing regulations at the Potomac Officers Club’s 2026 FedCiv Summit on Oct. 29. The summit will bring together top government decision-makers to discuss modernization, cybersecurity, customer experience and adoption of emerging technologies, including artificial intelligence. Sign up today to secure your seat.
What Technology Priorities Are Funded in the FY27 Budget Request?
Modernization remains a priority for the U.S. government. FedCiv agencies will receive billions in funding to support efforts to sunset decades-old legacy systems and adopt more modern IT infrastructure.
Agencies are also allocating funding for cybersecurity and zero trust projects to protect federal systems from increasingly sophisticated cyberthreats.
In addition, the budget proposal emphasizes investments in technologies intended to improve operational efficiency and citizen services.
How Do FedCiv Agencies Plan to Spend Their FY27 IT Budget?
Department of Veterans Affairs
The VA will receive the biggest chunk of the proposed IT budget, with $12.2 billion earmarked for the agency’s technology projects. The VA’s requested IT budget for FY27 increased by 62 percent compared to FY26, Federal News Network reported.
Electronic Health Records Modernization
The agency’s electronic health record, or EHR, modernization program will also receive $4.2 billion under the president’s budget proposal. The funding will support the continued rollout of the VA’s Oracle-Cerner system following a three-year pause due to persistent outages and usability problems.
The agency said via a Federal News Network report that it has since addressed “hundreds of problems” in the system. It plans to resume deployment of the EHR at 164 medical centers and associated clinics starting in 2026.
Health Care Delivery Improvements
The VA is also getting $1.3 billion for programs that aim to improve the delivery of healthcare services for veterans and other digital services. According to budget documents, the funding covers scheduling, referral and community care billing.
Department of the Treasury
The Treasury will receive $6.2 billion for IT under the president’s budget request, a 48 percent year-over-year increase.
Cybersecurity Enhancement Account
The department has reduced its budget request for the Cybersecurity Enhancement Account, or CEA, from $126 million in FY26 to $57 million in FY27. CEA is the department’s centralized fund for cybersecurity efforts.
Business Systems Modernization
The Internal Revenue Service is asking for $728 million in FY27 for business systems modernization. The agency plans to retire legacy systems critical to its operations in the coming years. For instance, its Individual Master File, a decades-old system for individual tax account data, is expected to be decommissioned in 2028, NextGov/FCW reported.
The budget request will also support agency operations, which have experienced significant workforce cuts in 2026. The White House wants the IRS to utilize technology improvements to streamline its operations and deliver high-quality customer service, Federal News Network reported.
Department of Justice
The Justice Department’s IT initiatives are also getting a budget boost in FY27, with the president asking for $4.3 billion for the agency.
Justice Information Sharing Technology
DOJ said it needs $149 million for its Justice Information Sharing Technology, up from the $38.5 million funding the program received from Congress in the past two fiscal years, according to FedScoop. The FY27 request allocates $110.3 million to support the migration of the department’s unclassified and national security systems to zero trust.
DOJ said in budget documents that, despite being one of the organizations impacted by the SolarWinds cyber incident in 2020, its enacted funding “over the past three years” remained below the level required to cover over 275,000 endpoints and about 160,000 users.
Office of Personnel Management
The Office of Personnel Management’s budget for IT in FY27 represents a 58 percent decrease to $194 million compared to the funding it received for FY26.
Federal HR Modernization
The planned modernization of the federal government’s human resources systems is a priority for OPM in FY27. According to budget documents, the proposed funding will support the transition of select agencies to a new human capital management, or HCM, system dubbed Core HCM.
In the coming fiscal year, OPM plans to finalize the transition of the first wave of agencies to Core HCM, Federal News Network reported. It will also start transitioning the second wave of agencies in FY27.
OPM will also consolidate over 100 disparate HR IT systems across government and digitize the retirement process for federal employees.
General Services Administration
The White House has allocated $1 billion to the General Services Administration for FY27, some of which will go toward government-wide funding vehicles the agency manages.
Technology Modernization Fund
The White House budget request did not include additional funding for the Technology Modernization Fund, a program established in 2017 to finance cybersecurity and IT projects at government agencies. Lawmakers earmarked $5 million for TMF in the Senate and House Appropriations Committees’ conference bill package in January, but the administration is looking to a new model that would enable the funding vehicle to pull $100 million from other agencies, FedScoop reported.
Federal Citizen Services Fund
The Federal Citizen Services Fund is requesting $71 million for the coming year, slightly above its FY26 budget of $70 million.
About $32.6 million in unobligated funding from this year is expected to carry over to FY27, bringing the FCSC’s total budget to $103.7 million.
The FCSF, according to NextGov/FCW, supports projects that enable government agencies to conduct tasks or deliver services electronically. Some of the efforts it has funded are USA.gov and Login.gov.
Learn more about the technology priorities and initiatives across federal civilian agencies at the 2026 FedCiv Summit on Oct. 29. Senior government officials and industry leaders will speak at the event to explore how new technologies are reshaping federal operations. Tickets are now available here.
