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.

At WEST this year, Department of the Navy leaders signaled a clear shift in modernization priorities: the debate is no longer about adopting emerging technology or drafting strategy documents. Instead, we’re seeing operational speed, how quickly the Navy can field capability, integrate systems and make decisions, become the objective. Across sessions on shipbuilding, acquisition transformation, AI, Zero Trust and maritime force design, the recurring theme was speed matters most.

Aging infrastructure, outdated hardware and overall modernization needs have been a mission-critical challenge for the DoD. It’s not just about IT headaches; there are real obstacles to modernization for the Department. Let’s look at what’s driving the urgency to update in multiple ways and how IT companies can position themselves to help modernize the nation’s defense backbone.

The National Defense Authorization Act (NDAA) is passed annually to define the Department of Defense’s priorities and guide how funds are allocated. While it doesn’t directly appropriate money, it shapes the direction of defense spending and sets the framework for future contracts. This makes it a key indicator of where IT investments and opportunities will emerge.

As the U.S. marks Cybersecurity Awareness Month, a critical pillar of the nation’s digital defense has expired. On September 30th, Congress failed to pass a continuing resolution, furloughing many federal cybersecurity staff and allowing the Cybersecurity Information Sharing Act (CISA) of 2015 to lapse as cyber threats are reaching unprecedented levels. The Cybersecurity and Infrastructure Security Agency, which spearheaded much of the law’s implementation, has also furloughed nearly two-thirds of its workforce.

The Space Systems Command (SSC) Front Door is now the go-to portal for businesses looking to work with the US Space Force. As the Space Force budget is requested as high as $39 billion, including all FY26 requests and reconciliation funding, IT companies have a bigger role to play than ever.