Summary: The rapid pace of technological change and innovation has offered unprecedented opportunities for the government to improve performance, cut costs, and improve service to the public. It is increasingly critical that federal agencies have effective leadership and focused management control over the government's $38 billion annual investment in information management and technology. Since the passage of the Clinger-Cohen Act in 1996, all 24 major federal agencies have appointed chief information officers. Spurred by the Year 2000 computing problem, many have also begun implementing essential information management processes, such as information technology investment management controls, cost estimation processes, and information technology architecture. This testimony discusses the progress that has been made in establishing federal chief information officers and the challenges that remain to realizing these positions' long-term benefits. Along with this testimony, GAO issued a report on ways to ensure that chief information officer functions are effectively integrated into overall performance-based and accountability management approaches. (See GAO/AIMD-00-83, Mar. 2000, page 63.)