Why America's Digital Government Is Stuck Playing Whack-A-Mole—And How To Fix It
The current approach is not a technology strategy. It is the absence of one.
- The U.S. federal government spends over $100 billion annually on IT, yet more than 80% of systems still rely on legacy technologies, some dating back to the 1970s.
- The Technology Modernization Fund (TMF) received only $1 billion in initial seed funding, far below the tens of billions needed for comprehensive modernization.
- The U.S. Digital Service (USDS), launched in 2014, has fewer than 200 permanent staff, compared to the UK's Government Digital Service which employs over 800 and enforces binding standards.
- FITARA (Federal IT Acquisition Reform Act) gave agency CIOs more authority, but a 2025 GAO report found that 60% of agencies still fail to fully comply with its requirements.
- A 2024 survey by the Pew Research Center found that only 38% of Americans rated federal digital services as 'excellent' or 'good', compared to 72% for private-sector e-commerce.
For decades, the U.S. federal government has poured billions into information technology, yet the user experience for citizens remains decades behind the private sector. From the Healthcare.gov debacle in 2013 to the slow rollout of IRS digital tools and the continued reliance on floppy disks in nuclear command systems, the pattern is clear: pay more, get less. The problem isn't a lack of spending—the federal IT budget exceeds $100 billion annually—but a fundamental absence of coherent digital government strategy.
Why does this keep happening? The core issue is structural. Federal IT procurement is fragmented across hundreds of agencies, each with its own priorities, contracting rules, and cultural inertia. Legacy systems, some written in COBOL and dating back to the 1970s, remain in place because replacing them is deemed too risky or expensive. The government's approach to modernization has been reactive: patch a breach here, fix a crash there, roll out a half-baked portal under congressional pressure. That is whack-a-mole, not strategy.
Several efforts have tried to break the cycle. The U.S. Digital Service (USDS) and 18F were created to bring tech talent into government and lead agile projects. The Modernizing Government Technology (MGT) Act of 2017 established a Technology Modernization Fund (TMF) to seed agency upgrades. FITARA (Federal Information Technology Acquisition Reform Act) aimed to give CIOs more authority. Yet results have been mixed. USDS and 18F have delivered impactful projects—like improving veterans' benefits portals—but their reach is limited. The TMF has been underfunded and often raided for other priorities. Agency CIOs still struggle against entrenched procurement cultures and congressional earmarks.
The consequence is that American citizens pay the price in frustration. Tax filing remains convoluted. Passport renewals take months. Basic interactions with Social Security, Medicare, or small-business loan programs often feel like navigating a labyrinth. Security vulnerabilities multiply as unsupported operating systems accumulate. The recent spate of high-profile breaches at federal agencies—from OPM to CISA—directly trace to a lack of strategic investment in modern, defensible architectures.
Informed observers, including former USDS leaders and academic experts in digital governance, argue that the fix requires a shift from project-based heroics to institution-wide transformation. One former U.S. deputy CTO put it succinctly: 'We need a permanent, well-funded digital service that sets standards, provides shared components, and holds agencies accountable—not just a SWAT team that rushes from fire to fire.' Others call for a 'digital mandate' similar to the UK's Government Digital Service (GDS), which forces agencies to adopt common platforms, design standards, and user-research practices. Without such a mandate, whack-a-mole will persist.
What happens next? A few milestones bear watching. The renewal of the MGT Act and increased TMF appropriation are pending in Congress. The new USDS director (appointed in early 2026) has signaled a shift toward 'platform government'—building reusable services rather than bespoke systems. Meanwhile, the rapid adoption of generative AI by states and cities is pressuring the federal level to modernize or risk being left behind. The next 12 to 18 months will determine whether the U.S. finally stops playing whack-a-mole and builds a digital government worthy of the 21st century.
Frequently Asked Questions
The US government lacks a coherent digital government strategy. Agencies operate independently with legacy systems, reactive funding, and no binding standards, forcing them to constantly patch crises instead of planning long-term modernization.
Legacy systems are outdated computer systems—often decades old—still used by federal agencies. Over 80% of US government IT systems are considered legacy, including some that run on COBOL or require floppy disks, creating security and efficiency risks.
Fixing digital government requires a permanent, well-funded centralized digital service with authority to set standards, enforce common platforms, and hold agencies accountable—similar to the UK's Government Digital Service (GDS). Policy changes like fully funding the Technology Modernization Fund also help.
The US Digital Service is a team of technologists within the Executive Office of the President, created in 2014 to improve federal digital services. It works on high-priority projects like Veterans Affairs benefits and immigration, but its small size limits its impact.
FITARA (Federal Information Technology Acquisition Reform Act) is a 2014 law giving agency CIOs more control over IT budgets and acquisitions. It matters because it aims to reduce wasteful spending and improve oversight, though compliance remains inconsistent.
The US federal government spends over $100 billion annually on information technology, yet much goes to maintaining legacy systems rather than modernizing. The Technology Modernization Fund was created to shift that balance but remains underfunded.
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www.forbes.com
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