This Federal Computer Week post describes efforts to preserve the e-Gov fund. The problem, as I see it, is that the administration's e-Gov effort has no daddy on Capitol Hill. E-Gov is the sort of effort which gets pushed by an individual representative and/or senator. In some situations it's known as an earmark; in others it's just someone's hobbyhorse; in a few situations it's brilliance. Hold your laughter, but Senator Gore did have a major role in pushing the internet into civilian control. Or Senator Lugar has had a major role in safekeeping nuclear material in the former SSR's.
As far as I know, e-Government has no such sponsorship by someone in Congress. It's an orphan.