Understanding the Cost of Technical Debt in Federal IT
The United States has long struggled with managing its financial debt—borrowing beyond its means, deferring payments, and accumulating obligations that eventually come due. The same holds true for Technical Debt, the silent burden growing within federal IT systems. Over time, agencies have made compromises, delaying system upgrades, implementing short-term fixes, and relying on outdated code and infrastructure. Just like financial debt, technical debt compounds, leading to ballooning maintenance costs, cybersecurity vulnerabilities, and operational inefficiencies. The longer it remains unaddressed, the more difficult and expensive it becomes to fix, ultimately slowing down government effectiveness, innovation and performance.
With over $100 billion spent annually on federal IT, a vast majority of that budget is dedicated to maintaining outdated legacy systems instead of driving modernization. Agencies that fail to act now face heightened risks of cyberattacks, operational breakdowns, and non-compliance with evolving policies and statutory requirements. The challenge is not just about keeping up with technology—it is about ensuring that government systems remain efficient, secure, and adaptable to future needs.
The High Cost of Ignoring Technical Debt
The consequences of technical debt are not abstract; they have resulted in tangible, high-profile failures. In 2023, a major cyberattack exploited vulnerabilities in old legacy ColdFusion software, resulting in unauthorized access to sensitive federal data. In early 2023, the FAA experienced a significant system outage due to legacy infrastructure issues. These events underscored the risks associated with technical debt, as outdated systems can lead to major operational disruptions. The 2015 OPM data breach, one of the most damaging cybersecurity incidents in U.S. history, was attributed to outdated IT infrastructure, exposing millions of government employees’ personal information.
A recent survey of technology leaders found that 70% consider technical debt their biggest barrier to innovation. Moreover, agencies see an annual 15% budget increase due to legacy system maintenance—diverting critical funds away from modernization initiatives.
Why TechDebt Needs to Be a DOGE Priority
The Department of Government Efficiency (DOGE) mission to cut waste and optimize federal operations will remain incomplete without tackling technical debt. Like financial debt, unchecked technical debt compounds over time, increasing IT maintenance costs by 10-20% annually and limiting investments in AI, cloud, and cybersecurity. Without modernization, outdated systems cost more, drain resources, weaken security, and stifle innovation.
By proactively reducing IT debt, DOGE can free up billions of tax payer dollars, enabling transformative technological advancements and ensuring government services remain resilient, efficient, and prepared for future challenges.
Read our latest whitepaper: How DOGE can erase technical debt and drive innovation
Recommendations to DOGE to Drive a Bold Plan to Eliminate Technical Debt and End Wasteful Spending
Mandate a 40% Reduction in Technical Debt Within Two Years
Setting an ambitious yet achievable goal of reducing technical debt by 40% within two years would drive accountability and measurable progress. A structured “debt repayment plan” would prioritize high-risk legacy systems, ensuring resources are allocated efficiently. Tools like DX360°® TechDebt Guardian enables agencies to quantify and track technical debt, identify bottlenecks, and optimize IT investments. By using performance metrics and regular reviews, this strategy ensures that modernization efforts deliver lasting improvements rather than temporary fixes.
Use Generative AI for Automated Technical Debt Remediation
Generative AI is a game-changer in combating technical debt, replacing manual reviews with continuous monitoring and AI-driven refactoring. TechDebt Guardian can automatically analyze outdated codebases, detect inefficiencies, and prioritize remediation before small issues escalate into major failures. Meanwhile, AI software like Rhino.ai accelerates legacy system modernization by extracting business logic from outdated applications—eliminating reliance on incomplete documentation. By integrating AI-driven tools like GitHub Copilot, Amazon CodeWhisperer, Tabnine, and Codeium, agencies can automate coding processes, reduce redundancy, and improve system resilience.
Adopt Open Source to Cut Costs and Enhance Interoperability
Replacing expensive proprietary software with enterprise-grade open-source solutions can significantly reduce long-term IT costs while increasing flexibility. Agencies can transition to PostgreSQL for databases, OpenShift for container orchestration, TensorFlow for AI, and Apache Spark for big data analytics—all of which provide vendor-neutral, scalable, and secure alternatives. A structured governance model—including automated security scanning and pre-approved repositories—ensures compliance while eliminating costly software licensing fees.
Accelerate Modernization with Low-Code/No-Code Platforms
Modernization should not require ground-up full stack software development for every application system. Low-code/no-code platforms like ServiceNow, Sales Force and Microsoft Power Platform empower agencies to build applications faster and more efficiently, reducing customization costs and IT backlogs. Consolidating applications within a secure, pre-approved platform streamlines compliance, accelerates innovation and minimizes security risks associated with fragmented systems.
Maximize ROI with App-Based Solutions
Government agencies already have access to pre-built, fully vetted applications through ServiceNow’s GovCommunity apps, Microsoft’s Power Platform solutions, and Salesforce’s AppExchange. Instead of reinventing the wheel, agencies can deploy proven, flexible, secure solutions that meet fast emerging mission needs. DX360°® AppEngineer, for example, enables agencies to rapidly develop and scale applications at a fraction of the cost of custom-built applications from scratch.
DOGE stands at a pivotal moment to redefine the future of federal IT spending. The unchecked rise of technical debt threatens to undermine efficiency, security, and fiscal responsibility. By aggressively adopting AI-driven remediation, leveraging open-source solutions, and maximizing low-code platforms, DOGE can not only eliminate waste but also unlock billions in savings—funds that can be reinvested in transformative technologies that drive national security, operational agility, and innovation. This is more than just modernization; it is a fundamental shift in how the government operates. The choice is clear—either allow inefficiencies to persist as they have been for decades or lead the charge in building a future-ready, resilient digital infrastructure that serves the nation for decades to come.
