Quantum is now a high priority in federal IT modernization, cybersecurity, procurement and national security. Federal mandates and directives are accelerating the need to strengthen quantum leadership and preparing government systems for post quantum cyber resilience.

Driven by initiatives such as the AI Action Plan, Department of Energy Genesis Mission and the National Security Strategy, there has been exponential adoption and investment for AI in the last year. As AI expansion is expected to move from experimentation to enterprise deployments, demand for the infrastructure that powers AI is anticipated to continue rapidly accelerating. 

The US Department of the Air Force has been undergoing a steady stream of transformations as it forges toward technology modernization. A notable change this year has been the formation of Portfolio Acquisition Executives, responsible for procurement of goods and services to address a specified mission, with the main goal to speed up technology procurement in support of warfighters.

In FY27, state and local governments are navigating a complex technology environment amid changes in policy, the accelerated adoption of emerging tech, and the rapid growth of digital services and citizen expectations. Cloud adoption continues to impact technology consumption; AI is introducing challenges around data, security, governance and contracting; and agencies are facing mounting pressures to modernize aging systems while becoming more efficient and generating measurable long-term ROI.

The Defense Health Agency (DHA) recently hosted the 2026 Defense Health Information Technology Symposium (DHITS) in New Orleans, bringing together more than 2,200 attendees to discuss the future of military health IT.  The clear message throughout the event was that technology, data, and digital capabilities are increasingly viewed as a combat support capability directly tied to warfighter readiness. 

On a typical day in 2024, the Defense Health Agency (DHA) reported the military health system (MHS) encountered 164,000 patients and 205,000 procedures across military hospitals and medical clinics globally. Assuming this pace continues throughout the fiscal year, MHS is estimated to have managed 60 million occurrences in FY25. The sheer volume of data generated across the MHS is immense. Optimizing this data is critical for clinicians and healthcare providers to support the health and readiness of service members.

In June 2025, Texas signed the Responsible Artificial Intelligence Governance Act into law, outlining statutory requirements for the state’s use of AI. In response to this, the Texas Department of Transportation (TxDOT) released an updated Artificial Intelligence Strategic Plan in January 2026.

In mid-March, AFCEA NOVA hosted the Naval IT Day in Chantilly, Virginia with the core message on how Navy and Marine Corps digital priorities are enabling the naval force. The message was clear, IT is not just a necessary function, it is a mission-critical warfighting capability.

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.

Over the last decade, technology has profoundly transformed U.S. state, local government, and higher education (SLED). As digital landscapes evolve, a skilled workforce is crucial. Pluralsight has proudly supported state and local governments for a decade by partnering with NASCIO through sponsorships and workforce development initiatives. Explore the top ten tech trends reshaping public service, and see how Pluralsight helps leaders build resilient, future-ready teams.