6 state and local government IT stories to watch for in 2026

State and local governments are heading into 2026 facing a mix of legal deadlines, emerging technologies and high-profile events that will test their IT systems. From federal accessibility requirements to emergency response upgrades, these six issues are likely to shape government technology decisions in the coming year.

1. AI moratorium

In December, President Trump issued an executive order aimed at blocking states from enforcing their own artificial intelligence laws. The order directs federal agencies, including the Department of Justice, to challenge or preempt state AI regulations it deems “onerous,” arguing that patchworks of differing state rules slow innovation and compliance for businesses. It also threatens to withhold federal funding, such as broadband grants, from states if they enforce their own AI safeguards.

Several state leaders, civil rights groups and attorneys general have criticized the moratorium, saying it undermines states’ rights to protect their residents, especially in the absence of comprehensive federal AI policy, and leaves Americans vulnerable to harms like bias and discrimination.

2. Federal aid

H.R. 1, the federal budget and policy legislation, could affect how states manage programs like the Supplemental Nutrition Assistance Program and receive disaster aid from the Federal Emergency Management Agency. Changes to funding levels, eligibility rules or administrative requirements often come with new reporting and data-sharing expectations.

The bill slashed FEMA’s core discretionary budget by nearly $10 billion and forced staffing cuts, which will likely impair local disaster response capabilities. It also expanded work reporting requirements, removed exemptions for veterans, homeless people and foster youth, and restricted state waiver flexibility, shifting costs and responsibilities to states.

For state IT teams, these changes will mean updating eligibility systems, recalculating benefits, reconfiguring data pipelines and ensuring systems can handle increased scrutiny. If federal funding is reduced or delayed, like it was during the government shutdown last year, states may also need to build stopgaps to keep services running.

3. World Cup

In June and July, FIFA World Cup 2026 will bring massive crowds to host cities in Canada, Mexico and 11 locations in the United States, including Atlanta, Los Angeles, Miami and the San Francisco Bay Area. The event will create new public safety and emergency management challenges. Drones are expected play a major role as tools for surveillance, crowd monitoring, disaster response and to thwart potential security threats.

State and local governments will rely on systems that can track drones, detect unauthorized ones and coordinate with federal partners in real time. Emergency management platforms will integrate drone feeds, traffic data, weather alerts and communications networks. The World Cup will act as a stress test for emergency IT infrastructure and will help shape preparations for the 2028 Summer Olympic Games in Los Angeles.

4. Digital accessibility requirements

In April, states and and larger local governments will be required comply with new digital accessibility rules issued by the Department of Justice. The rules direct government websites, mobile apps, online forms and other digital services to meet a set of standards designed to be useable by people with disabilities, as defined by the Americans with Disabilities Act. That includes things like screen-reader compatibility, captions for videos, keyboard navigation and machine-readable PDFs.

For many governments, this will require updating old systems, retraining staff and auditing hundreds of thousands of digital assets. Agencies that fail to comply could face lawsuits or federal penalties.

5. Next-generation 911

Next-generation 911 continues to be an important technology upgrade for states and localities, especially amid a growing wave of outages and cyberattacks threatens the nation’s aged and underfunded emergency communications systems. NG911 supports text messages, photos, videos, real-time data sharing and more precise location tracking.

Many states will this year still be rolling out or stabilizing their new 911 systems. Challenges include cybersecurity risks, interoperability across jurisdictions, funding sustainability and training call-takers to use new tools effectively. As extreme weather events and disasters become more frequent, NG911’s ability to route calls, share data and stay online during outages will fall under scrutiny.

6. Cybersecurity strain

Cybersecurity remains an issue underlying all government IT systems. Aging infrastructure, workforce shortages and increasing ransomware attacks continue to threaten essential services. The House of Representatives has passed a bill that would reauthorize the State and Local Cybersecurity Grant Program until 2033, but the program’s future remains unclear. And the Trump’s second administration continues to cut down the Cybersecurity and Infrastructure Security Agency and programs that have long supported state and local governments’ IT security efforts.

In 2026, states will be forced to prioritize which systems get upgraded first, as they weigh the consequences of outdated technologies backing elections, emergency communications, schools, benefits platforms and public health. As Rep. Andrew Garbarino, a Republican from New York, told his fellow lawmakers last November, cyberattacks against school districts, police departments and rural government offices “may not always make national headlines, but they have real consequences.”