House advances federal technology procurement overhaul

The House passed legislation on Monday aimed at changing how federal agencies buy technology, including higher dollar thresholds for streamlined purchases and new training requirements for acquisition staff. The measure, the Federal Improvement in Technology Procurement Act, or FIT Procurement Act, has no current companion bill in the Senate, FedScoop reported Tuesday.

The bill, H.R. 4123, is sponsored by Rep. Eric Burlison, Republican of Missouri. Burlison announced the House passage in a post on X, saying that older procurement rules create bureaucracy and that the measure would modernize the process, reduce waste and help agencies use taxpayer funds more efficiently.

According to a Congress.gov summary, the FIT Procurement Act would address federal procurement policy and the federal acquisition workforce. Its most direct operational change would be to raise the simplified acquisition threshold to $500,000 from $250,000 and the micro-purchase threshold to $25,000 from $10,000.

Those thresholds determine how agencies buy goods and services. Purchases below the simplified acquisition threshold can use less complex federal procedures, according to Congress.gov. Purchases below the micro-purchase threshold generally do not require agencies to seek competitive quotations, the summary says. Raising those limits would expand the range of transactions eligible for lighter procurement processes.

The legislation also would assign new workforce training responsibilities across federal procurement agencies. Congress.gov says the Federal Acquisition Institute would have to provide information and communications technology acquisition training for certain members of the acquisition workforce.

The bill would also transfer responsibility for implementing an artificial intelligence training program for certain acquisition workers to the General Services Administration from the Office of Management and Budget, according to the congressional summary. In addition, the Office of Federal Procurement Policy would be required to take steps intended to increase competition among eligible firms and reduce barriers to entry for small businesses.

Burlison introduced the legislation in June 2025. In a press release at the time, he said existing purchasing rules were outdated, slowed technology acquisitions and created unnecessary costs. He said the FIT Procurement Act would cut red tape, save taxpayer money and bring government procurement practices closer to the standards of an efficient business.

The bill’s prospects remain uncertain without a Senate counterpart. FedScoop reported that a version of the legislation passed the House in the last Congress, while the Senate companion measure did not advance.

Federal technology procurement has become a recurring policy focus as agencies purchase cloud services, cybersecurity tools, artificial intelligence capabilities and other digital systems under acquisition rules designed for a broad range of goods and services. The FIT Procurement Act would change parts of that process by expanding lower-friction purchasing categories and directing training for officials who manage technology buys.

This story draws on original reporting from PYMNTS.