Establishment of the American Technology Council

Overview

Purpose and Establishment

Executive Order 13794, issued by President Donald Trump on April 28, 2017, established the American Technology Council (ATC). The primary objective of the ATC is to improve how the Federal Government utilizes information technology (IT) to deliver digital services more efficiently and securely, with the ultimate goal of modernizing government operations. By forming the ATC, the Trump administration aimed to consolidate efforts for technology modernization across various government entities, recognizing the critical role of digital services in fulfilling government missions and serving American citizens effectively.

Composition of the ATC

The ATC comprises a diverse group of high-ranking government officials, including the President, Vice President, and several other key figures from defense, commerce, homeland security, and intelligence sectors. This wide-ranging composition underscores the administration's intent to align IT initiatives with broader government priorities, encompassing national security and economic considerations. Additionally, the inclusion of technology-specific roles, such as the U.S. Chief Technology Officer and the Federal Chief Information Officer, demonstrates a commitment to leveraging specialized knowledge in shaping the government’s IT strategy.

Mandate of the ATC

The ATC is tasked with coordinating the direction and strategy for the government's use of IT. This includes providing advice to the President on decisions and processes related to digital services. By acting as a centralized body, the ATC serves to unify disparate technology efforts under a cohesive policy framework. This centralization is intended to avoid duplication of efforts, streamline technology implementation, and ensure governance of IT systems across various government units aligns with overarching policy goals.

Impact on Government-Funded Sectors

Through the ATC, the administration seeks to promote economic efficiencies within government-funded technology sectors, driving innovation through a mandate for modernization. The policy implicitly supports the development of IT infrastructure by encouraging cross-agency collaboration and sharing of best practices, thus potentially reducing costs and increasing the speed of service delivery to the public. Moreover, by integrating IT advancements, the government aims to enhance the agility and responsiveness of its services.

Limitations and Termination

The order sets a clear boundary by excluding the management of national security systems from its purview, thereby delineating civilian technology priorities from military concerns. The order’s provisions were initially designed to be short-term, with a termination date set for January 20, 2021. This timeframe suggests an anticipation of immediate challenges that needed to be addressed, while acknowledging the dynamic nature of technology and potential shifts in policy under future administrations.

Legal and Policy Implications

Constitutional Basis and Executive Authority

EO 13794 is grounded in the president's constitutional authority to oversee the executive branch and ensure that federal operations are efficient and aligned with policy goals. By centralizing strategy and decision-making for IT services under the ATC, the order reflects a use of executive power aimed at improving administrative management rather than legislating new regulatory frameworks. The order adheres to the traditional boundaries of executive action by defining a clear scope of authority limited to coordination and advisory functions.

Impact on Existing Statutes and Regulatory Processes

The executive order aligns with existing statutory mandates for IT management, such as the Federal Information Security Modernization Act and the Clinger-Cohen Act, which stress the importance of improving federal information systems. By proposing a coordinated approach through the ATC, the order complements these laws by enhancing coordination rather than imposing new statutory obligations. Furthermore, the order respects pre-existing agencies' autonomy by ensuring it does not impair their statutory duties.

Office of Management and Budget (OMB) Coordination

While establishing the ATC, the order explicitly retains the authority of the OMB to oversee budgetary and administrative policies related to IT management. This provision ensures continuity of fiscal oversight and preserves the OMB’s role in enforcing compliance with federal IT policies and practices. The ATC's function, therefore, serves to augment rather than override OMB oversight, providing a supplementary strategic framework within which the OMB can conduct its operations.

Implications for Federal Governance

The order seeks to improve federal governance by fostering interagency collaboration on technology initiatives, addressing a historical challenge of siloed operations within government departments. The mandate to form task forces and interagency groups reflects a shift towards more cohesive federal management structures. This is intended to mitigate bureaucratic inefficiencies, promote knowledge sharing, and facilitate a more responsive governance model in the digital age.

Potential Legal Challenges

Though no significant legal disputes emerged directly from the implementation of this order, the broad authority vested in the executive branch to dictate IT priorities has sometimes raised concerns regarding checks and balances. Critics may argue that such orders pave the way for over-centralization of power, potentially stifling innovation or adapting rapidly to legislative oversight. However, the order’s design safeguards against these issues by maintaining existing agency authorities and statutory oversight mechanisms.

Who Benefits

Technology Companies

Technology corporations stand to benefit significantly from EO 13794 through increased government contracts for IT upgrades and digital service enhancements. By emphasizing modernization, the order opens up opportunities for businesses specializing in cloud computing, cybersecurity solutions, and software development. The implementation of new technologies by the government can serve as a launchpad for further innovation within the private tech sector, potentially driving exponential growth in related markets.

Government Agencies

Federal agencies receiving assistance and strategic direction from the ATC could see performance improvements and resource efficiencies. Agencies benefit from coordinated efforts to modernize IT infrastructure, which can lead to enhanced operational capacities. This streamlined technology integration could enable agencies to fulfill their missions more effectively, with improved user experiences for both employees and the citizens they serve.

U.S. Citizens

U.S. citizens are indirect beneficiaries of improved government technology. Enhanced digital services mean faster, more reliable access to government portals and services, reducing bureaucratic delays and enhancing accessibility for remote and underserved populations. The ultimate aim is to create a more user-friendly interface between the government and its citizens, translating into an improved quality of government-citizen interactions.

Cybersecurity Industry

The cybersecurity industry also stands to gain as a result of initiatives prompted by the ATC. With the government being one of the largest consumers of cybersecurity products and services, efforts to safeguard critical digital infrastructure can lead to increased demand for innovative security solutions. This could also potentially encourage more collaborative efforts between the government and private cybersecurity firms on best practices and technologies.

Economy

On a macroeconomic level, improved government efficiency and innovation spurred by the ATC can have positive ripple effects on the broader economy. By fostering a competitive and technologically advanced environment within the federal framework, the initiatives driven by the ATC might bolster the U.S. economy’s global competitiveness, attracting and retaining investments driven by modern digital infrastructure.

Who Suffers

Traditional IT Vendors

Legacy IT vendors that have historically relied on federal government contracts might face challenges as the government shifts toward more modern, cost-effective solutions. Companies offering outdated technologies may find it difficult to compete with newer, more innovative competitors that offer cutting-edge solutions aligned with the ATC's objectives, potentially leading to a reevaluation of business strategies to remain viable in this evolving landscape.

Small and Medium Enterprises (SMEs) in IT

SMEs that lack the resources to scale rapidly or invest in large bidding processes might struggle to secure government contracts under the new technology priorities. The inclusion of larger technology firms could potentially crowd out smaller competitors, despite their innovative capacities. These businesses may need to form partnerships or consortiums to remain relevant players in the government vendor ecosystem.

Government Employees Resistant to Change

Government employees accustomed to legacy systems might encounter difficulties adapting to new technologies and processes. While the intent is to improve efficiency, the transition phase could bring about operational disruptions and require significant retraining. Resistance or slow adaptation could lead to decreased morale and productivity during the implementation period, impacting service quality temporarily.

Agencies with Limited Budgets

Agencies with constrained budgets might face difficulties in aligning their operations with the ATC's modernization goals without additional funding. While the ATC aims to streamline costs, initial technology adoption and infrastructure upgrades could impose significant financial burdens. Agencies will need to strategize carefully to balance technological advancements with fiscal responsibility.

Certain Privacy Advocates

Privacy advocates may express concerns about increased data collection and potential for surveillance arising from enhanced federal technology infrastructures. The order does not specifically address privacy issues, which could lead to apprehension about how personal information is managed within the expanded digital framework. Advocacy groups are likely to seek reassurances or legislative measures to ensure that civil liberties are adequately protected.

Historical Context

Trend Toward Modernization

EO 13794 marked a continuation of longstanding efforts to modernize federal IT infrastructure, echoing initiatives by previous administrations aiming to harness technology for improved governmental operations. The order aligns with early 21st-century trends where digital transformation is recognized as a key driver of efficiency and effectiveness within public services. It builds on the foundation of earlier legislative and executive actions aimed at improving information technology management within the federal sector.

Obama Administration Precedents

This executive order emerged following efforts by the Obama administration that similarly prioritized IT modernization, including the establishment of the U.S. Digital Service and similar initiatives to overhaul federal digital processes. By building on these efforts, the Trump administration's policy represents not a radical departure, but a strategic continuation of bipartisan recognition of technology’s role in government effectiveness.

Alignment with Economic Policies

The order aligns with broader economic policies of the Trump administration, which emphasized deregulation, efficiency, and strengthening domestic capabilities. By focusing on modernizing federal IT systems, the administration sought to streamline government processes in line with its business-like approach to governance, treating the public sector as malleable to the same efficiencies and innovations driving the private sector.

Technology and National Security

The order fits into a broader narrative of using technology to bolster national security indirectly, by ensuring that the federal IT infrastructure is not only efficient but also resilient against cyber threats. Although national security systems are explicitly excluded, the broader efficiency and security improvements sought through this initiative are likely to have positive spill-over effects on general national security policy goals.

Impact on International Competitiveness

Globally, federal improvements in technology infrastructure could enhance the United States’ position as a leader in digital innovation and governance, setting standards in efficiency that underpin international competitiveness. As countries worldwide seek to harness technology to improve governance, the ATC's outcomes could potentially influence transnational policy trends, where digitalization of public services becomes a benchmark for modern economies.

Potential Controversies or Challenges

Concerns Over Centralization

Given the enhanced role of the ATC in coordinating federal IT strategy, there exists potential concern over centralization of decision-making power. Critics may argue that this could stifle innovation by imposing a one-size-fits-all policy across diverse agencies, which might have unique technology needs. The balance between centralization for efficiency and decentralization for tailored solutions remains a potential point of contention.

Accountability and Oversight

The order’s advisory nature, while providing strategic direction, might not always sync with the independent statutory and policy-driven mandates of various federal agencies. Ensuring accountability and oversight without overstepping jurisdictional boundaries remains a potential challenge, as differing interpretations of the scope and implementation could lead to inter-agency tensions.

Budgetary Implications

The financial implications of the EO could ignite debates, particularly if cost savings from technological efficiencies fail to materialize promptly. Congressional scrutiny over expenditures related to IT modernization projects may arise, focusing on whether the initiatives spearheaded by the ATC justify their expense, particularly in a politically divided context where budget priorities often reflect deep ideological divides.

Sustainability and Long-term Impact

The short-term nature of the ATC, designed initially to terminate in 2021, raises questions about the sustainability of initiatives it sets in motion. Without a clear pathway for integration into longstanding governance structures, there’s a risk that gains achieved within its tenure may not be sustained or amplified without continued executive or legislative support beyond its expiration.

Response and Adaptation from Agencies

Implementation challenges may also arise from the agencies themselves, which could exhibit varying levels of readiness or enthusiasm for the changes envisioned by the ATC. Varying resource availability, technical expertise, and even cultural differences within federal agencies could hinder uniform adoption of ATC-recommended policies, leading to uneven technology integration across federal operations.