Federal Loan Systems Modernization Act of 2026

This bill authorizes the creation of a centralized shared services lending platform called "Lending.gov" to provide a single access point for federal loans, using modern commercial technology to reduce costs, prevent fraud, speed up origination, improve transparency, and enhance customer experience. It defines key terms such as "Platform," "Provider," and "customer agency." The purpose is to address inefficiencies from outdated technology, authorize the platform, establish government-wide loan management requirements, and give agencies oversight responsibility. Within six months, the Administrator of General Services must submit a plan to establish the Platform, including designating a lead agency, reviewing federal loan programs, identifying wasteful spending, proposing an operational framework, integrating commercial technology, setting a timeline, and estimating costs. The Provider must operate and improve the Platform, provide technical assistance, ensure compliance with cybersecurity and other federal requirements, integrate commercial tools, enter into agreements, include auditable financial capabilities, and guarantee data ownership and portability. Program manager satisfaction is a key performance standard, with annual surveys, public results, and remediation plans if satisfaction falls below thresholds. Customer agencies must provide Provider employees with badges and system access. The Provider must maintain performance dashboards and reports. Within two years of the plan, the Director of OMB must start migrating agency loan management systems to the Platform, with completion within three years unless an exception is granted. Exceptions require a determination of impracticability and notification to Congress, lasting no more than three years, with a migration plan required within two years. The Administrator oversees migration and management, reviews the operational framework, establishes government-wide standards, recommends on exceptions, monitors compliance, and submits annual reports to Congress. The Administrator may assess whether additional Providers should be designated to create a shared services marketplace, and the Director may designate up to three additional agencies as Providers, who must use the initial Platform's public-facing capabilities. Customer agencies reimburse the Provider for services. The Provider may collect a remittance fee of up to 0.25% of the loan face value for ongoing operations, but not for direct loans to individuals unless the agency head certifies no material harm to borrower affordability. Fees are held in a dedicated fund used exclusively for Platform operations and maintenance.