More than 15 years ago, the DoW formally elevated cyber pursuits to the same strategic level as sea, land, air and space. This acknowledgement shifted cybersecurity from risk management to a national defense need, underscoring the importance of protecting the DoW’s defense infrastructure and networks. Defense cybersecurity challenges have since evolved into a multi-domain conflict, particularly with China and Russia - both aiming to infiltrate digital assets.

The FY27 federal budget request was released on April 3^rd, and is providing an initial look at the momentum and impact IT investments will have in the coming years.

The Department of War’s unprecedented $1.5T request underscores attention on national security and pushing towards next-generation warfighting capabilities, while across the whole of government, there is expected to be a continued mandate to drive efficiency, consolidate systems and align technology investments with administration priorities.

In early March, the White House released the National Cybersecurity Strategy, outlining a six-pillar framework designed to guide federal cyber policy, investment, and operational priorities over the coming years.

During this year’s Smart Cities Connect Conference and Expo in Raleigh, NC, one topic garnered considerable attention: AI. Within many city governments, AI is past experimentation and has moved into production. In 2026, city IT leaders are prioritizing  safe, secure, and data-driven AI deployments that deliver measurable outcomes in mobility, public safety, infrastructure management, and climate resilience.

However, as cities move toward operational AI, challenges exist around data readiness, governance, and integration across departments.

This year’s Beyond the Beltway conference highlighted key strategic findings from IT leaders that signal where 2026 technology investments will be made and where to focus efforts for success. In 2026, state and local governments are at an inflection point: with rising expectations evolving alongside tightening budgets, staffing and timelines, success will depend on alignment of solutions to modernization requirements, workforce challenges and measurable ROI-driven outcomes.

The Golden Fleet, a US Navy initiative introduced by the administration in December of 2025, aims to revitalize the US shipbuilding industry, develop and sustain a new class of naval fleet and change how it does business to rapidly address maritime threats, particularly from China, in the Indo-Pacific region. The first frigate is planned for full operation in 2028.

In early February, Chief of Naval Operations Admiral Daryl Caudle unveiled the details of the US Navy’s 2026 Hedge Strategy. As the Navy is facing a great power competition, rapid technological change and strain on the defense industrial base, it is critical to adapt an innovative operational and strategic approach to maintain adversarial advantage. The strategy shifts away from dominance by mass towards a risk-balanced operational approach that has asymmetric, combat-ready capability. In other words, they are “hedging their bets” on more tailored capabilities and nimble operations.

The National Defense Authorization Act (NDAA) is passed annually to define the Department of Defense’s priorities and guide how funds are allocated. While it doesn’t directly appropriate money, it shapes the direction of defense spending and sets the framework for future contracts. This makes it a key indicator of where IT investments and opportunities will emerge.

In August 2025, President Trump signed an executive order titled “Improving Our Nation Through Better Design,” establishing the new “America by Design” initiative. The order aims to enhance both the digital and physical experiences of government services and facilities, signaling a major modernization effort focused on design, technology and user experience.

As the U.S. marks Cybersecurity Awareness Month, a critical pillar of the nation’s digital defense has expired. On September 30th, Congress failed to pass a continuing resolution, furloughing many federal cybersecurity staff and allowing the Cybersecurity Information Sharing Act (CISA) of 2015 to lapse as cyber threats are reaching unprecedented levels. The Cybersecurity and Infrastructure Security Agency, which spearheaded much of the law’s implementation, has also furloughed nearly two-thirds of its workforce.