When I taught a hardware repair class at an IRS campus in Ohio around 1990, my students proudly showed me their latest technological marvel: a bank of modems - a whole dozen of them! - that had recently been set up for their most recent brilliant invention, electronic filing. These were large perf-metal boxes in racks, and I could see the vacuum tubes glowing inside. Yeah, these folks aren't exactly early tech adopters. I'm pretty sure they're still running a fair amount of COBOL, etc. on their systems. (I later found out from my boss that I was persona non grata at the IRS due to the comments I made about that tech; they didn't want me coming back to teach there anymore. I had tried to restrain myself, but I guess it didn't help much... I had built a modem - a project from the Popular Electronics magazine - more than 10 years before, and it was more sophisticated than those Frankensteinian lashups.)
Government systems in general are decades behind, primarily because of red tape. They're like trying to build a building in CA's bay area. By the time all studies and approvals are completed and a permit is issued you've already sunk 5 years and a million dollars on your project.
Your bank records have been scanned for decades. This new thing you are referring to is all politics. What are they proposing that isn't already happening as an open secret??