The Legacy IT Reduction Act of 2026 requires federal agencies to inventory their outdated computer systems and create plans to modernize or retire them. Each agency's chief information officer must compile a detailed inventory within one year and update it every five years, including information about system names, costs, vendors, and modernization timelines. Within two years, agencies must develop comprehensive modernization plans covering which legacy systems they'll prioritize and what steps they'll take over the next five years to update, modernize, retire, or dispose of them. These modernization plans must be submitted to Congress and relevant oversight committees within 30 days of completion. The Office of Management and Budget will issue guidance on implementation within 180 days, and the Comptroller General must report back to Congress within three years on how well the law is working alongside other federal IT modernization programs. The legislation includes no new funding and automatically expires six years after enactment.
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