TMF Invites Proposals for AI and Modern Permitting Projects Before Funding Deadline

The Technology Modernization Fund (TMF) is currently soliciting proposals from federal agencies that target modernization in generative artificial intelligence (AI) and updating permitting technology. This funding opportunity is time-sensitive, with a submission deadline set for July 24, 2026. The TMF has over $200 million available, which must be allocated before the fund's authorization expires on September 30, 2026, unless Congress agrees to extend the authorization. As agencies in the federal government scramble to utilize the remaining funds, this initiative presents a crucial window for contractors specializing in technology modernization.

The impetus for this funding call stems from a broad goal to enhance data modernization, legacy system integration, and the implementation of the Permitting Technology Action Plan—a directive outlined in a memorandum by former President Trump in April 2025. TMF Executive Director Jessie Posilkin indicated that agencies are encouraged to submit high-impact, shovel-ready projects that address existing infrastructure gaps and expedite AI capabilities. The aim is to ensure responsible AI adoption that coincides with the significant technological evolutions taking place within government frameworks.

There is a keen urgency regarding the timeline for these proposals, as TMS Executive Director Jessie Posilkin recently highlighted on LinkedIn: “This call is moving fast, partly out of necessity. We have a very narrow window between now and September 30, when our authorization to make new investments ends.” The push for proposals is not just a reaction to the impending deadline but also a strategic step that addresses the pressing needs of federal agencies that have capable infrastructures but face challenges in deploying new technologies efficiently. This funding opportunity is particularly aimed at promoting AI projects and enhancing the permitting process, introducing tools and technologies that improve efficiency, transparency, and accessibility.

With a modest $5 million allocated for TMF in the fiscal 2027 appropriations bill, the overarching future of TMF funding remains uncertain without congressional action. In previous statements, Posilkin noted the challenges of addressing the increasing complexity of government technology needs with merely $200 million given the wide range of service delivery challenges. Indeed, even with a perfect repayment rate of prior TMF loans, the available funds are becoming a “drop in the bucket” compared to the growing demand for government modernization.

Therefore, procurement professionals and contractors with capabilities in AI and IT modernization sectors must act urgently. They are uniquely positioned to step in and offer solutions tailored to the fund’s objectives before the cutoff date. The focus on shovel-ready projects is indicative of the TMF’s urgency and willingness, albeit limited, to engage with contractors ready to deliver results quickly.

Key components of the current call for proposals include initiatives that can demonstrate:

1. Preparation of agency data and infrastructure for generative AI.
2. Pilot applications of AI to improve service delivery and operational efficiency.
3. Advanced interoperability through data modernization which is crucial for effective permitting operations.
4. Development of modular applications that can enhance case management processes and improve timeline predictability.
5. Implementation strategies that comply with the Permitting Technology Action Plan mandates.

Contractors who can bring forward comprehensive strategies that align with TMF's expectations might find themselves at the forefront of the next wave of government technology investments. The TMF, equipped with an understanding of the exigent tech landscape, showcases a commitment to ensuring that federal agencies not only survive but thrive in the face of rapid technological changes.

All interested parties should prioritize submitting proposals early to ensure they can be considered thoroughly given the TMF’s strategy to expedite reviews and awards as quickly as possible due to impending deadlines. As Posilkin emphasized, the TMF was conceptualized to address urgent needs, and now presents a pivotal moment for contractors to get involved in shaping the future of government technology improvements and service delivery enhancement initiatives.