Technology Modernization Fund (TMF)

The California Department of Technology is seeking agencies to submit business challenges that require a solution to modernize government and improve digital services for our fellow Californians.


The California Department of Technology is seeking agencies to submit business challenges that require a solution to modernize government and improve digital services for our fellow Californians.
For more information about TMF visit - t -


During the COVID-19 pandemic, the state proved it can deliver and stabilize critical state services in days and weeks, rather than the months and years it normally takes to deliver IT projects. The availability of COVID-19 funding outside of the standard budget process was a major factor contributing to these successes. During the pandemic, the state delivered COVID-19 related IT projects such as the California Contact Tracing System (CalConnect), California COVID Reporting System (CCRS), California Exposure Notification System (CA Notify), California Vaccination Management (myCAvax & My Turn), and Pandemic Unemployment Assistance (PUA). In addition to delivering programmatic benefits directly to the residents of California, these efforts also demonstrated the ability to: 

  1. Quickly deliver initial services to meet program needs, with incremental and continuous system improvements
  2. Ensure critical services are fully operational without unreasonable downtime
  3. Maintain competitive procurement and oversight in the timely implementation of systems and services
  4. Implement new technology and simplify business processes
  5. Develop accurate predictive data modeling to help save residents’ lives
  6. Improve the public experience in consuming state services

In addition to the state’s recent experiences delivering new digital services and stabilizing existing digital services rapidly and successfully, the state also identified a need to proactively identify IT system weaknesses before they result in service disruptions. As a result, CDT requested resources as part of the Governor’s Budget to establish the capacity to proactively assess state IT systems, identify weaknesses, propose solutions, and prioritize the implementation of those solutions (see CDT’s Stabilize Critical Services and Infrastructure BCP). However, CDT did not request resources to implement the stabilization and improvement solutions it identifies. Given the state’s recent successes and the receipt of higher than projected revenues, the state has a unique opportunity to make an immediate investment in its IT that will yield results quickly for internal and external stakeholders.

Requirements & Outcome

The TMF will be used to enable departments to deliver timely business modernization wins through high-value proof of concepts, fulfill immediate needs, and optimize services for digital government. A strong commitment from the department’s business and IT leadership and team capability are required to be successful. Awards from the TMF will involve a multi-stage process including proposal, readiness assessment by CDT, and a “pitch” to a selection committee comprised of state executives from other agencies and departments. TMF may fund small project that can provide high-value services quickly or could be use for a Proof of Concept to jumpstart and bridge to larger projects approved through PAL.

CDT will identify solutions that are good candidates for this funding model through the proactive assessments proposed by CDT as part of the Governor’s Budget and by evaluating small strategic proposals submitted by state entities using the existing Stage 1 Business Analysis (S1BA) document. Using the S1BA to evaluate relatively simple high-value proposals will enable the quick initiation of projects that would normally move further into the PAL and BCP processes, simply because of the need to request funding. This funding will not be expended on IT solutions that would constitute a non-delegated project. Examples of criteria that will be used to prioritize solutions include: 

  • Analysis of Problem
  • Return on investment (measured in risk reduction, financial returns, or increased quality of service)
  • Assessment of criticality
  • Strong program, technical and operational leadership team
  • Viable, fast path to delivery (less than 12 months)

Supports statewide goal(s) (e.g., Vision 2023, stabilizes critical services, addresses security risk, encourages shared services) Once solutions are selected, CDT will submit a prioritized list to the Department of Finance for review and approval prior to expending funds. Provisional language will also require CDT to report to the Legislature biannually on: the use of funds, the progress of funded projects, the status and results of system assessments, as well as the contents of the prioritized list.


Digitization and Process Improvement


Budget Exists

Application Period

October 25 through January 1, 2033 at 12:00 PM (GMT-08:00) Pacific Time (US & Canada)

Q&A Period

January 1 through January 1, 2026 at 12:00 AM (GMT-08:00) Pacific Time (US & Canada)

Are you able to help?
Let's tackle this challenge together!

Applications are being accepted until January 1, 2033 at 12:00 PM

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