Federal quantum policy is shifting from long-term research planning to implementation and readiness. There have been several recent actions taken, including executive orders, strategy updates and new initiatives, to strengthen U.S. leadership in quantum technologies and post-quantum cyber resilience. Quantum is becoming a priority in federal IT modernization, cybersecurity, procurement and national security. 

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 The previous logging requirements published in 2021 via OMB Memo M-21-31 have been rescinded with the publication of OMB’s latest memo M-26-14, calling the logging of cyber incidents across federal agencies to include both Continuous Event Monitoring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).

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.

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.

The Air Force (DAF) has been aggressively pushing for the modernization of its networks, legacy systems, and software; in line with these efforts is an equally robust acquisition overhaul designed to speed up procurement of everything it buys, from weapon systems to cloud services and digital applications. For IT companies, this shift is creating new opportunities but also means new expectations, greater competition, and challenges. 

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.

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.

If you’ve been part of the defense industrial base (DIB) or are looking to support the DoW, it should come as no surprise that AI is now seeing actionable impact in day-to-day operations. Strategically, AI is essential in warfighting decision-making, analyzing data and enhancing operational logistics. The Army in particular has started incorporating AI solutions across a number of elements outlined below, on the heels of several new strategy announcements and initiatives.