Earlier this month, the Trump administration released a new executive order titled “Securing the Nation Against Advanced Cryptographic Attacks,” in efforts to accelerate the shift to post-quantum cryptography (PQC). While the new EO is directed at federal agencies, the downstream effects on SLED will be impactful, particularly through funding alignments, vendor requirements and shared infrastructure.

The Quantum Threat and The Need for Change

Quantum computing is introducing a newer cybersecurity risk with the potential to undermine encryption methods that are currently considered secure, reducing their effectiveness against future threats. For federal agencies and national security systems, this is critical as they rely on cryptography to protect data, identities, software and communications. The risk is not theoretical for planning purposes.

Reshaping Federal Logging Requirements 

As of late May, 2026, logging requirements for federal agencies will shift from a volume-driven mindset to a risk-based logging approach. The previous logging requirements published in 2021 via OMB Memo M-21-31 have been rescinded with the publication of OMB’s latest memo M-26-14, calling the logging of cyber incidents across federal agencies to include both Continuous Event Monitoring (CEM) and Threat Hunting, Investigation, Response and Forensics (THIRF).

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.

At this year’s Red, White and You conference, our market intelligence team detailed the ins and outs of what we’re seeing across the public sector. Throughout the sessions, one theme became clear: while success in the public sector market used to rely heavily on institutional knowledge and long-standing relationships, agency buying cycles, and slower opportunity development, the market this year looks different. It’s faster, calling for more efficiency, innovation and cost-optimization.

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.

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.