The Daily Scoop Podcast

Episode: Congress tees up spending package to extend TMF authorization through September
Date: January 21, 2026
Host: Billy Mitchell

Overview

This episode centers on essential federal technology and management news. The primary focus is Congress's move to extend the Technology Modernization Fund (TMF) authorization through September 2026 as part of a broader spending package, and the ramifications of a recent Department of Justice (DOJ) court filing concerning data handling violations by the Department of Government Efficiency (DOGE) within the Social Security Administration (SSA).

Key Discussion Points & Insights

1. Congressional Action on the Technology Modernization Fund (TMF)

• A newly proposed congressional spending bill includes the extension of the TMF’s authorization, which had lapsed in December 2025 (00:37).
  • The bill would reactivate nearly $200 million in previously frozen TMF funds.
  • This move is part of over $1 trillion allocated to federal agencies in the fiscal 2026 spending bills.
• The TMF, established in 2017, supports federal agencies’ technology modernization projects with initial funding, to be repaid from project-generated savings (01:10).
  • “The TMF model was intended to be a self-replenishing working capital fund that provides initial funding to agencies for modernization projects. These projects are intended to save government money, and after a specific period the agency is expected to repay those funds.” (02:07, Billy Mitchell)
  • At expiration, $200 million remained locked due to the lack of Congressional action.
• Lawmakers had failed to reauthorize TMF through standalone bills or inclusion in earlier legislative packages.
  • Notably, Rep. Nancy Mace has repeatedly introduced reauthorization bills that stalled in the Senate.
  • Industry voices and trade groups had criticized the expiration, viewing it as a result of procedural delays rather than opposition to TMF itself.
  • Observers predicted reauthorization would eventually be included in an appropriations bill rather than receive separate consideration. (01:50)

2. Potential Mishandling of Social Security Data by the Department of Government Efficiency (DOGE)

• DOJ alleges DOGE, embedded at SSA, mishandled sensitive Social Security data—potentially violating a court order (03:05).
  • “DOGE likely violated an order on Social Security data, according to a court filing.” (00:17, Billy Mitchell)
• Background:
  • Labor unions, including the AFL-CIO, filed suit in February 2025 to restrict DOGE’s access to SSA data.
  • In March 2025, a court imposed a temporary restraining order limiting DOGE’s data access.
  • Despite declarations that DOGE personnel completed privacy and ethics training, a DOJ filing (Jan 2026) found evidence of data operations and potential violations.
• Key details of the violation (03:32):
  • DOJ reports DOGE transferred data via a third-party Cloudflare server that was not authorized for SSA data storage.
  • SSA officials were unaware of this third-party use and cannot confirm the data’s disposition.
  • Multiple instances found of DOGE accessing personally identifiable information (PII), including:
    • SSA workforce records
    • Data visualization tools integrating with multiple sources
    • Shared workspaces used for fraud and analytic reviews
  • “Because it is a third party entity, the agency can't determine what data was shared or whether it still exists on the server.” (03:45, Billy Mitchell)

Notable Quotes & Memorable Moments

• On TMF’s importance and Congressional delays:
  • “Some pinned the blame on procedural hurdles in Congress, including the 43 day long government shutdown that pushed various non funding priorities toward the end of the year.”
    — Billy Mitchell, (01:36)
• On the mechanics and value of TMF:
  • “The TMF model was intended to be a self-replenishing working capital fund that provides initial funding to agencies for modernization projects.”
    — Billy Mitchell, (02:07)
• On the surprise discovery of SSA data mishandling:
  • “SSA officials did not know DOGE representatives had used Cloudflare in that manner...adding that because it is a third party entity, the agency can't determine what data was shared or whether it still exists on the server.”
    — Billy Mitchell, (03:45)

Important Timestamps

• 00:37 – Congress proposes TMF reauthorization in new spending bill.
• 02:07 – Explanation of TMF's structure and the freeze on $200M in funds.
• 03:05 – DOJ filing alleges SSA data violations by DOGE.
• 03:45 – Details on unauthorized data sharing via Cloudflare and PII access.
• 04:55 – (End of content; outro begins.)

Conclusion

This episode provides a concise overview of how congressional appropriators aim to reauthorize the $200M Technology Modernization Fund via a broad spending bill—reviving stalled IT modernization efforts across agencies—and reveals fresh legal and security concerns at SSA, where external actors may have breached data protocols and court orders during a period of contentious oversight. The episode highlights ongoing challenges in federal IT modernization and data stewardship within government agencies.

For more details and ongoing coverage, listeners are directed to fedscoop.com.