Bill would raise thresholds for simpler federal tech purchasing rules

What does this do?

The FIT Procurement Act requires better training for federal employees who buy technology, covering cloud computing, AI, cybersecurity, and faster purchasing methods. It raises the simplified acquisition threshold from $250,000 to $500,000 and the micro-purchase threshold from $10,000 to $25,000, and allows advance payment for things like cloud subscriptions.

Who does it affect?

The bill affects federal agencies, the employees who manage technology contracts, and businesses—especially small businesses—that sell technology or services to the government.

Why does it matter?

Raising these thresholds means more purchases can bypass full formal contracting steps, reducing paperwork requirements for a wider range of transactions. It also directs new reporting and rule updates to track small business participation and conflicts of interest.

What does it cost, and who pays?

• No new funding provided
• Agencies use existing resources