Jerry Petersen
The incoming Trump administration should prioritize the adoption of new technologies to ensure the efficiency and integrity of federal grant and loan programs, which distribute nearly $3 trillion in funding every year, according to Bill Webner, the CEO of loans, grants and fraud platform developer Allocore.
‘Untenable’ Reliance on Legacy Systems
Webner, a 2024 Wash100 awardee, said in an opinion column published Tuesday on Nextgov/FCW that the government’s current reliance on antiquated technologies to manage such programs is “untenable.” These legacy technologies not only cost hundreds of millions of dollars each year to operate and maintain but also are difficult to upgrade and susceptible to various security vulnerabilities due to a lack of support.
Countering Fraud Schemes With Commercial Technologies
Legacy systems also come with weaknesses, such as inadequate identity verification, that are exploited by organized crime syndicates or foreign actors when carrying out their fraud schemes. The Allocore chief executive recommends that agencies adopt commercial technologies or solutions inspired by best practices in the commercial financial and banking sectors to detect and prevent such schemes. Such technologies not only safeguard taxpayer dollars but also make grant program processes faster and more efficient for the agencies administering them.
“The federal government’s reliance on outdated IT systems poses significant risks to the efficiency and integrity of its programs. Modernizing these systems is not just an operational necessity; it is a cornerstone of effective governance in the 21st century,” Webner said.
