On June 2nd, President Trump signed a new AI executive order, Promoting Advanced Artificial Intelligence Innovation and Security, which aims to strike a balance between AI innovation and security. The order directs federal agencies to strengthen AI-enabled cybersecurity defenses and coordinate with private industry on secure AI deployments.

Navigating the Latest CISA Guidance on Agentic AI

The Cybersecurity and Infrastructure Security Agency (CISA), along with the NSA and international partners, recently issued guidance for the Careful Adoption of Agentic Artificial Intelligence (AI) Services.

On May 7, 2026, the FEMA Review Council released its final report recommending a substantial shift in how disaster preparedness, response and recovery are managed nationwide.

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.

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 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.

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.

In 2023, California Governor Gavin Newsom signed Executive Order N-12-23, directing state government institutions to utilize AI. These state entities are now beginning to move from the theoretical planning phase into the deployment phase with concrete plans.

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.

Over the last year, the Army has been undergoing significant transformation under the Army Transformation Initiative and the larger Pentagon reorganization efforts. This includes the more recent decision to change from Program Executive Offices (PEO) to Portfolio Acquisition Executives (PAEs) to have tighter alignment across missions, the Chief Information Office (CIO), contracting and functional owners. This reorganization will help reduce siloed IT modernization, speed up decision-making and better align acquisition with operational outcomes.