Trump admin eyes new model for TMF in 2026; Pentagon begins recruiting its next cohort of disruptive defense acquisition fellows

The federal Technology Modernization Fund has had a bumpy relationship with congressional appropriators since its creation in 2017, and now the Trump administration wants to sidestep the appropriations process entirely to replenish the fund on an annual basis with unused money transferred from agencies. The White House on Friday quietly issued an in-depth appendix of its budget request for fiscal 2026, and executive agencies followed suit, publishing their annual budget justification documents. The General Services Administration, which houses the TMF program and disburses its funds, revealed in its 2026 justification that the Trump administration did not request any “new discretionary appropriated funding for the TMF” in 2026, instead proposing a new model for how it could pull money from other agencies, up to $100 million, to re-up the fund each fiscal year. “President’s FY 2026 budget request includes a governmentwide general provision that will allow GSA, with approval of OMB, to collect unobligated balances of expired discretionary funds from other agencies and bring that funding into the TMF,” the justification explains. “To further strengthen the TMF’s ability to help agencies kickstart or accelerate their urgent modernization efforts, GSA and OMB are committed to exploring alternative funding mechanisms.” Historically, the sitting administration has called on Congress to fund the TMF on an annual basis, with varying degrees of success. Pentagon procurement officials who are looking to up their expertise in buying cutting-edge tech for the U.S. military can now apply to join the 2026 Immersive Commercial Acquisition Program fellowship cohort, Defense Innovation Unit officials announced Tuesday. Next year will mark the fourth iteration of the educational ICAP initiative, which DIU runs in partnership with the Defense Acquisition University. This fellowship is designed to provide DOD’s leading procurement professionals with hands-on experience and virtual training to help them more effectively buy in-demand commercial technologies from non-traditional military contractors. DIU’s Deputy Director for Commercial Operations Liz Young McNally told DefenseScoop during a panel at the Special Competitive Studies Project’s AI+ Expo. “We have other acquisition officers from across the department who can apply to the year-long fellowship with DIU — to learn our process, how we work with industry, and then bring that back to wherever they’re going. And [the next ICAP application] just opened today.”If tapped for the fellowship, personnel will get a chance to work on a variety of real-world, military service-aligned projects alongside a DIU contracting officer, project team and commercial solution providers. The fellows will also gain in-depth instruction on a flexible contracting mechanism designed for rapid prototyping and acquisition of commercial tech, known as other transaction (OT) authority.