The Feds Have a $100 Billion IT Problem w/Luke Hogg and Dan Lips

The federal government spends over $100 billion on information technology (IT) every year. About 80 percent of that goes toward operating and maintaining systems, many of which are long outdated and obsolete. Some federal IT systems are more than 50 years old.

On day one of his presidency, Trump signed an EO that established the Department of Government Efficiency, which included a mandate to modernize “Federal technology and software to maximize governmental efficiency and productivity.”

While DOGE helped shine a spotlight on the issue, it isn’t new. The Government Accountability Office has long warned about the risks of poor federal software practices—taxpayer waste, inefficient government processes, harms to citizens who rely on services like veterans benefits, and cybersecurity vulnerabilities.

Many presidents have tried to solve it, but despite some improvements here and there, the problem has persisted for lots of reasons. Government agencies often lack the expertise to understand their software products and needs. Agencies have also failed to properly audit and track their software purchases. The companies who sell software to the government often deliberately make it difficult for agencies to modernize, change vendors, or diversify their supply chains.

With a renewed focus on government efficiency, how can Congress and the Trump administration tackle the long-festering problem of outdated and vulnerable federal IT? What can agencies do on their own, and what requires an act of Congress? And how would the American people benefit from improving these systems?

Evan is joined by Dan Lips, Senior Fellow at FAI and Luke Hogg, Director of Tech Policy at FAI. For more, see Dan’s blog post and Evan’s op-ed.