Legacy IT Reduction Act of 2026

This bill requires federal agencies to reduce their reliance on and spending for old information technology (IT) systems by creating inventories and modernization plans. It defines key terms like 'legacy information technology system' and 'Technology Modernization Fund.'

Sec. 3, Legacy IT system inventory: Within one year and again five years later, each agency's Chief Information Officer must compile a list of all legacy IT systems used. The Director of the Office of Management and Budget (OMB) will issue guidance on what details to include, such as system name, mission support, connections to newer systems, last update date, annual cost, vendor info, and expected upgrade or retirement date. Agencies must share this inventory with Congress, oversight committees, the Comptroller General, or inspectors general upon request.

Sec. 4, Agency modernization plans: Within two years and every five years after, each agency head must create a plan to modernize its legacy IT systems, included in its strategic plan. The plan must list the inventory, prioritize systems for updates or retirement, outline steps over the next five years, and may include capacity, cost estimates, adaptability, and effects on connected systems. The plan must be submitted to Senate and House oversight committees within 30 days.

Sec. 5, Role of OMB: Within 180 days, the OMB Director, with the Office of Electronic Government, must issue guidance on implementing the bill, including criteria for defining legacy IT, templates for inventories and modernization plans, and how this bill fits with other IT modernization laws.

Sec. 6, Comptroller General review: Within three years, the Comptroller General must report to oversight committees on the bill's implementation and how it works with other IT modernization efforts like the Technology Modernization Fund, IT working capital fund, and programs from the General Services Administration and OMB.

Sec. 7, Protection of sensitive information; exemption of national security systems: The bill does not require disclosure of sensitive information protected by law or that would compromise IT security. It does not authorize inventorying, reporting on, or transferring national security systems. It also prohibits transferring legacy IT systems or equipment to the Chinese Communist Party, People's Republic of China, or entities controlled by it.

Sec. 8, No new funds; sunset: No additional funds are authorized for this bill, and it expires six years after enactment.