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Protocol | Policy

Stimulus bill injects $1 billion into government IT

The cash infusion into the Technology Modernization Fund falls short of Biden's $9 billion promise, but it's still unprecedented.

Stimulus bill injects $1 billion into government IT
The $1 billion is one provision in the $1.9 trillion COVID relief bill.

On Wednesday, Congress voted to give $1 billion to the Technology Modernization Fund, an unprecedented cash infusion that will go a long way toward modernizing the government's rickety technology systems. But supporters of government modernization say they're still about $8 billion short of what they really need.

The fight to keep TMF funding in the final version of the $1.9 trillion COVID-19 relief package has been hard-fought — the result of aggressive lobbying efforts by the tech industry's major trade groups as well as advocacy from Bidenworld players like National Security Adviser Jake Sullivan.

"The administration, including the [National Security Council] and NSA Sullivan, believe we need to fund the federal government's cybersecurity priorities and modernization needs," a White House official told Protocol.

But while $1 billion is a transformative sum, it's still a bit of a letdown to supporters of the TMF. The Biden administration had originally pushed for $9 billion in spending, a revolutionary amount of money for the TMF that could have fundamentally altered how the government funds technology efforts, enabling government-wide efforts to move applications to the cloud or track federal workers' identities.

Matthew Cornelius, the executive director of the Alliance for Digital Innovation, said it's "unfortunate" that the full $9 billion ultimately wasn't included. But $1 billion still amounts to "the biggest investment in centralized IT modernization in probably a decade," he said. Cornelius's group counts Amazon Web Services, Google Cloud and Salesforce among its members, and they all stand to make a lot of money as the government improves its remote work capabilities during the pandemic.

The tech industry and IT wonks on Capitol Hill were alarmed when the House passed a version of the American Rescue Plan without any money for the TMF on March 2, according to two lobbyists and two congressional aides. House leadership stripped the $9 billion provision from the bill due to opposition from Democratic Sen. Kyrsten Sinema, who insisted that the money was unrelated to COVID relief efforts. (Sinema's office did not respond to a request for comment.) The marching orders were clear: The House version was supposed to hew as closely to the Senate's as possible, according to one House aide.

Lobbyists and aides in both chambers immediately began to point fingers: It was the fault of Biden's Office of Management and Budget, which didn't make the case for the money forcefully enough. Or it was House leadership, which didn't seem willing to fight for the money. Or it was Sinema, whose office did not seem to understand the arguments for including government tech funding in a COVID bill.

A coalition of tech trade associations and the Chamber of Commerce, as well as senators including Sen. Gary Peters and other longtime advocates for federal IT, immediately began to push members of the Senate to increase support for the funding. Two aides said Sullivan and representatives for the National Security Agency made it clear to lawmakers that they believed the funding was a matter of national security.

The TMF's supporters focused on two major arguments for its inclusion: First, the government needs to figure out how to go remote, and fast, as Biden's administration begins to fill up without any immediate plans to get the federal workforce back to the office. And second, in the words of one tech industry official, it came down to one word: SolarWinds.

"A lot of policymakers are focused on SolarWinds — particularly so, those who have an interest in federal technology," said Jon Pawlow, senior director of government affairs at the Information Technology Industry Council. "We want to make sure that we're able to recover from the COVID pandemic, but are also encouraged by the fact that these resources will help to not just modernize federal IT, but better secure against cyberthreats."

Ultimately, the Senate agreed to include the $1 billion for the TMF in the version that passed last week.

Supporters of the TMF said it's ironic that $1 billion is somewhat disappointing. "If you would've told us a year ago we would've gotten $1 billion for the TMF, we'd call that transformative," the House aide said.

Craig Albright, the vice president for legislative strategy at BSA, also known as The Software Alliance, said the fund will "unlock some of the changes that are sorely needed." He said the funding will be a "massive improvement for the federal government."

There's a huge difference between what the TMF could do with $9 billion versus what it will do with $1 billion. It's the difference between fixing technical problems at individual agencies and revamping how the entire government processes information. But it's likely that supporters of the TMF will point to the projects that it funds through the American Rescue Plan to make a case for future investments. The Biden administration has made it clear that modernizing the government's technology infrastructure will be a key priority moving forward.

"Whether it's $1B or $9B, it is just a start," the White House official said. "We look forward to building on this investment and demonstrating the value of the TMF model."

The metaverse is coming, and Robinhood's IPO is here

Plus, what we learned from Big Tech's big quarter.

Image: Roblox

On this episode of the Source Code podcast: First, a few takeaways from another blockbuster quarter in the tech industry. Then, Janko Roettgers joins the show to discuss Big Tech's obsession with the metaverse and the platform war that seems inevitable. Finally, Ben Pimentel talks about Robinhood's IPO, and the company's crazy route to the public markets.

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David Pierce

David Pierce ( @pierce) is Protocol's editor at large. Prior to joining Protocol, he was a columnist at The Wall Street Journal, a senior writer with Wired, and deputy editor at The Verge. He owns all the phones.

After a year and a half of living and working through a pandemic, it's no surprise that employees are sending out stress signals at record rates. According to a 2021 study by Indeed, 52% of employees today say they feel burnt out. Over half of employees report working longer hours, and a quarter say they're unable to unplug from work.

The continued swell of reported burnout is a concerning trend for employers everywhere. Not only does it harm mental health and well-being, but it can also impact absenteeism, employee retention and — between the drain on morale and high turnover — your company culture.

Crisis management is one thing, but how do you permanently lower the temperature so your teams can recover sustainably? Companies around the world are now taking larger steps to curb burnout, with industry leaders like LinkedIn, Hootsuite and Bumble shutting down their offices for a full week to allow all employees extra time off. The CEO of Okta, worried about burnout, asked all employees to email him their vacation plans in 2021.

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Stella Garber
Stella Garber is Trello's Head of Marketing. Stella has led Marketing at Trello for the last seven years from early stage startup all the way through its acquisition by Atlassian in 2017 and beyond. Stella was an early champion of remote work, having led remote teams for the last decade plus.

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Facebook is looking to make posts disappear, Google wants to make traffic reports more accurate, and more patents from Big Tech.

Facebook has ephemeral posts on its mind.

Image: Protocol

Welcome to another week of Big Tech patents. Google wants to make traffic reports more accurate, Amazon wants to make voice assistants more intelligent, Microsoft wants to make scheduling meetings more convenient, and a ton more.

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Karyne Levy

Karyne Levy ( @karynelevy) is the West Coast editor at Protocol. Before joining Protocol, Karyne was a senior producer at Scribd, helping to create the original content program. Prior to that she was an assigning editor at NerdWallet, a senior tech editor at Business Insider, and the assistant managing editor at CNET, where she also hosted Rumor Has It for CNET TV. She lives outside San Francisco with her wife, son and lots of pets.

Protocol | China

China’s edtech crackdown isn’t what you think. Here’s why.

It's part of an attempt to fix education inequality and address a looming demographic crisis.

In the past decade, China's private tutoring market has expanded rapidly as it's been digitized and bolstered by capital.

Photo: Getty Images

Beijing's strike against the private tutoring and ed tech industry has rattled the market and led observers to try to answer one big question: What is Beijing trying to achieve?

Sweeping policy guidelines issued by the Central Committee of the Chinese Communist Party on July 24 and the State Council now mandate that existing private tutoring companies register as nonprofit organizations. Extracurricular tutoring companies will be banned from going public. Online tutoring agencies will be subject to regulatory approval.

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Shen Lu is a reporter with Protocol | China. She has spent six years covering China from inside and outside its borders. Previously, she was a fellow at Asia Society's ChinaFile and a Beijing-based producer for CNN. Her writing has appeared in Foreign Policy, The New York Times and POLITICO, among other publications. Shen Lu is a founding member of Chinese Storytellers, a community serving and elevating Chinese professionals in the global media industry.

It’s soul-destroying and it uses DRM, therefore Peloton is tech

"I mean, the pedals go around if you turn off all the tech, but Peloton isn't selling a pedaling product."

Is this tech? Or is it just a bike with a screen?

Image: Peloton and Protocol

One of the breakout hits from the pandemic, besides Taylor Swift's "Folklore," has been Peloton. With upwards of 5.4 million members as of March and nearly $1.3 billion in revenue that quarter, a lot of people are turning in their gym memberships for a bike or a treadmill and a slick-looking app.

But here at Protocol, it's that slick-looking app, plus all the tech that goes into it, that matters. And that's where things got really heated during our chat this week. Is Peloton tech? Or is it just a bike with a giant tablet on it? Can all bikes be tech with a little elbow grease?

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Karyne Levy

Karyne Levy ( @karynelevy) is the West Coast editor at Protocol. Before joining Protocol, Karyne was a senior producer at Scribd, helping to create the original content program. Prior to that she was an assigning editor at NerdWallet, a senior tech editor at Business Insider, and the assistant managing editor at CNET, where she also hosted Rumor Has It for CNET TV. She lives outside San Francisco with her wife, son and lots of pets.

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