US HB2985

Amends the Technology Modernization Fund (TMF) to refocus spending on modernizing, retiring, or replacing legacy federal IT systems, enhancing cybersecurity and privacy, and improving agency mission delivery

Requires agencies to reimburse the TMF for transferred funds at levels sufficient to keep the Fund operational until it sunsets on December 31, 2032

Mandates the Administrator suspend or terminate funding for projects where agencies provided fraudulent or misleading statements about technical design, business cases, or program management

Requires agency Chief Information Officers to annually submit lists of high-risk legacy IT systems to the Federal CIO, who must compile a "Legacy Federal IT Inventory" and identify the 10 systems posing greatest security, privacy, and operational risks government-wide

Ties fund transfers to metric-based development milestones achieved through rapid, iterative development processes, with incremental disbursements rather than lump-sum payments