What does Preamble of Federal Loan Systems Modernization Act of 2026 do?

This bill authorizes the creation of "Lending.gov", a shared services platform. Lending.gov aims to provide a single point of access for loans provided by Federal agencies. The platform intends to utilize modern technology to support the management of Federal credit programs. The stated purposes of Lending.gov include reducing costs, preventing fraud, increasing origination speed, improving transparency, and enhancing access and customer experience.

What does SHORT TITLE. of Federal Loan Systems Modernization Act of 2026 do?

This bill is formally titled the Federal Loan Systems Modernization Act of 2026.

What does DEFINITIONS. of Federal Loan Systems Modernization Act of 2026 do?

This section defines terms used throughout the Act. “Administrator” and “Administration” refer to the Administrator of General Services and the General Services Administration, respectively. “Agency” is defined according to section 551 of title 5, United States Code. “Appropriate congressional committees” are the Senate Committee on Homeland Security and Governmental Affairs and the House Committee on Oversight and Government Reform. A “customer agency” is an agency participating in the Platform. “Director” refers to the Director of the Office of Management and Budget. “Federal loan program” includes direct or guaranteed Federal loan or credit programs administered by an agency. “Loan management” encompasses administrative activities related to Federal lending, including application intake, underwriting, and fraud detection. “Loan management technology” is commercial software adapted for Federal loan programs. The “Platform” is a centralized shared services lending platform established under section 4(a), including Lending.gov. “Provider” refers to a shared service provider of the Platform.

What does PURPOSE. of Federal Loan Systems Modernization Act of 2026 do?

This Act aims to address inefficiencies in Federal lending processes caused by outdated technology. It seeks to mitigate consumer difficulties in accessing Federal loan programs. The Act authorizes the creation of a centralized loan platform called "Lending.gov". "Lending.gov" will utilize commercially available loan processing software. The Act establishes Government-wide requirements for loan management. Agencies will be responsible for establishing and maintaining oversight of the Platform.

What does ESTABLISHMENT OF THE LENDING.GOV PLATFORM. of Federal Loan Systems Modernization Act of 2026 do?

This section establishes requirements for the creation of a Platform. The Administrator must submit a plan to the Director and congressional committees within six months of the Act's enactment. The plan must utilize commercially available loan management technology. The plan requires designation of a lead agency as the initial Provider and operational host. A review of Federal loan programs suitable for integration into the Platform is required, coordinated with the Federal Credit Policy Council. The plan must identify common deficiencies and wasteful spending related to outdated systems. It must propose an operational framework and a plan to integrate commercial loan management technology. The plan must include a timeline for implementation and an estimate of implementation costs.

What does OPERATIONS OF THE LENDING.GOV PLATFORM. of Federal Loan Systems Modernization Act of 2026 do?

This section outlines the responsibilities of the Provider in operating and maintaining the Lending.gov Platform. The Provider must continuously improve the Platform, provide onboarding and technical assistance to agencies, and offer loan servicing solutions. Compliance with federal requirements, including cybersecurity and privacy, is mandated for the Platform. The Provider is required to integrate commercially available loan management technology and ensure data portability for customer agencies. Program manager satisfaction at customer agencies is a primary performance standard, assessed through annual surveys. If satisfaction falls below established thresholds, the Provider must develop and implement remediation plans in consultation with the affected agencies. The Provider must provide performance dashboards and regular reports on Platform operations to the Administrator, Director, and customer agencies. The Provider's responsibilities are to be carried out in coordination with the Administrator and the Director, and are subject to oversight under section 7.

What does MIGRATION TO PLATFORM. of Federal Loan Systems Modernization Act of 2026 do?

This section outlines the migration of agency loan management systems to a Platform established under section 4. The Director, in consultation with the Administrator and the Provider, must commence this migration within two years of the Administrator's report under section 4. All agencies administering Federal loan programs must complete migration within three years of the Act's enactment, unless an exception is granted. The Director will establish criteria for migration, including loan programs originating or servicing over 50 loans annually, or with aggregate loan amounts exceeding $10,000,000. The Director can grant exceptions to the migration requirement if it's deemed impracticable or contrary to program efficiency, notifying congressional committees within 30 days. Exceptions can last no longer than three years. Agencies receiving an exception must develop a migration plan within two years of receiving the exception.

What does OVERSIGHT OF MIGRATION AND MANAGEMENT. of Federal Loan Systems Modernization Act of 2026 do?

This section establishes oversight responsibilities for the Administrator regarding the Platform established under this Act. The Administrator must review the operational framework of the Administration for the Platform, consulting with the Federal Credit Policy Council. Government-wide standards for loan management will be established, coordinating with the Director and the Federal Credit Policy Council. The Administrator will recommend on exceptions granted under section 6(c), analyzing their impact on cost effectiveness and financial sustainability. Agency compliance with migration requirements will be monitored. An annual report will be submitted to congressional committees detailing the status of agency migrations, exceptions, service levels, and recommended improvements. After the initial Platform establishment, the Administrator will assess whether a shared services marketplace with additional providers would improve adoption, service levels, and cost efficiencies. If recommended, the Director may designate up to 3 additional agencies as shared service providers. Additional providers must utilize the initial Provider's public-facing capabilities to ensure a consistent experience for loan applicants.

What does FINANCING OPERATIONS. of Federal Loan Systems Modernization Act of 2026 do?

Customer agencies are required to reimburse the Provider for services through interagency agreements or similar arrangements. The Provider may collect a remittance fee to support ongoing operations and maintenance of the Platform. The remittance fee is capped at 0.25 percent of the face value of Federal loans, unless otherwise authorized. Direct loans to individuals are exempt from the remittance fee unless the agency head certifies that the fee will not negatively impact borrowers. All collected remittance fees are held in a dedicated fund for Platform operations and maintenance. The Provider can transfer funds to customer agencies with the Administrator's approval to support migration and maintenance activities.

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Federal Loan Systems Modernization Act of 2026

Last updated: 3/4/2026 · Introduced: 3/4/2026

Author: Marsha Blackburn (R-TN)

TL;DR (AI)

This bill establishes Lending.gov, a centralized platform for managing federal loans across agencies, aiming to reduce costs and improve efficiency.
Agencies administering federal loan programs must migrate their systems to Lending.gov within three years, unless an exception is granted.
The bill requires agencies to reimburse the platform provider for services and establishes a remittance fee, capped at 0.25% of loan face value, to support ongoing operations.
The Administrator of General Services Administration will oversee the platform's operations, establish government-wide loan management standards, and monitor agency compliance.
The platform provider is responsible for continuously improving Lending.gov, providing technical assistance to agencies, and ensuring data portability.

119th Congressin committeeHR. 7789(In Committee)Official page

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