As we approach Sled Fiscal Year End (SFYE), SLED agencies are balancing budgets in a constrained environment, addressing rising constituent expectations, tackling growing cybersecurity challenges and supporting accelerated AI adoption.

For industry, this confluence of factors creates both complexity and opportunity. In today’s environment, success in SLED comes down to connecting IT investments to clear and measurable ROI in operational efficiency, modernization, resilience and cost savings.

This week, the National Association of State Chief Information Officers (NASCIO) released it annual State CIO Top Ten Policy and Technology Priorities list for 2026, signaling where state technology leaders are focusing their efforts, and limited resources, in the new year. This year’s list is reflective of the current policy, priority, and funding shifts that have affected SLED agencies most, coupled with the apparent drive towards innovation and modernization.

The Samosa Act, a bipartisan piece of legislation which passed the House in December 2024, has been reintroduced in the senate after advancing through the Senate Homeland Security and Governmental Affairs Committee in May 2023 but failing to reach the Senate floor for a final vote.

The 2025 fiscal year-end is right around the corner for 46 states, which means that it’s time to take advantage of those end-of-year opportunities before they are gone. SLED decision-makers are already looking ahead to next year’s budget process and are working to identify the most pressing technology policy and priority areas that will shape future downstream requirements.

In March 2025, the Defense Information Systems Agency (DISA) released its FY25-FY27 data strategy. The strategy consists of three lines of effort (LOE) and follows DISA’s Data Strategy Implementation Plan for FY 2022-2024. IT Companies interested in contracting with DISA should be aware of the data strategy as the strategy will influence DISA’s IT procurement decisions over the next two years.