Agile is an approach to software development in which software is built incrementally and is continuously evaluated on functionality, quality, and customer satisfaction. By engaging customers early and reviewing software regularly, Agile can reduce the risks of funding a program that fails or produces outdated technology. Agile has the potential to save the government billions of dollars by delivering services more efficiently and effectively. However, the transition to Agile can be costly and time consuming. We discuss the policy context and considerations to overcome challenges when implementing Agile for federal IT programs.