NASCIO’s 2026 CIO Priorities: Where States Will Invest Next

This week, the National Association of State Chief Information Officers (NASCIO) released it annual State CIO Top Ten Policy and Technology Priorities list for 2026, signaling where state technology leaders are focusing their efforts, and limited resources, in the new year. This year’s list is reflective of the current policy, priority, and funding shifts that have affected SLED agencies most, coupled with the apparent drive towards innovation and modernization.

For the first time in NASCIO history, Artificial Intelligence (AI) took the number one spot this year over cybersecurity, which previously took the first-place position for 13 years in a row. State governments are past the experimentation phase with AI and are now working hard to integrate AI into workflows, citizen service delivery, predictive analytics and citizen engagement use cases. AI adoption is now being encouraged at a more urgent pace, with continued emphasis on responsible adoption and use, ensuring that innovation can be met with proper security, governance and ethical concerns.

AI’s noted importance also underscores SLED leaders’ desire to automate complex tasks, enhance decision-making capabilities and modernize the citizen experience without needing to recruit more staff; imperative given the current fiscal constraints.

Cybersecurity and Risk Management took the number two spot this year, moving down one place but signifying the continued importance of maintaining strong defense capabilities in a landscape rife with innovation. In 2026, cybersecurity focus will remain tied to robust governance frameworks, training and awareness, data protection, minimizing third-party risk, budget and resource requirements and a continued “whole-of-state” approach.

Taking the number three spot and moving up on the list this year is Budget and Cost Control reflective of the sharp nationwide emphasis on cost reduction and “doing more with less.” States are facing a federal funding cliff in addition to a decrease in funding to grant programs and jurisdictional needs and FY26 state budget deficits. In 2026, the key is to keep modernization goals on track while carefully balancing fiscal constraints.

Modernization was fourth on the list this year, followed closely by Digital Government/Digital Services at number five. Public Sector modernization and digitization goals have continued to guide new technology acquisitions over the last few years, and with the rapid growth of AI, in 2026 SLED leaders are focusing on business process improvement, ensuring the proper security, compliance and privacy measures are baked in, improving cross-agency collaboration, application modernization and robust digital service frameworks.

After making the NASCIO top ten list last year for the first time at the number 10 spot, Accessibility has risen to the number 6 spot, indicating its increasing significance as a strategic priority that intersects policy, procurement and technology delivery. The DOJ’s final rule now includes a date certain for state and local governments to meet the new accessibility requirements (April 2026 for entities over 50k and April 2027 for those under 50k), and states are working hard to ensure their digital services are usable by all.

Identity and Access Management (IAM) is seventh on the list this year, and remains a critical enabler of secure government service delivery. Strong authentication and credentialing systems help to protect the vast amounts of sensitive date that SLGs interact with, coinciding nicely with the eighth priority this year, Data Management and Analytics. Data has really become a driver of everything, with emphasis on data governance, quality, data-driven decision making, and analytics platforms that support key insights, performance metrics and practical service improvements.

Consolidation fell off the list in prior years, but is back on the 2026 list, reflecting renewed desire for centralizing services, infrastructure and operations, supporting cost efficiency and enterprise governance. Consolidation efforts are also strongly supported by Cloud Services, which took the number ten spot on the list. Cloud adoption continues to be ubiquitous in nature and a must-have for SLED governments. State leaders are enhancing cloud strategies to further balance scalability, security, governance and cost transparency, with hybrid and multi-cloud models to meet mission-critical objectives.

Downstream implications and opportunities for IT companies:

For IT companies and channel partners, the NASCIO top ten list is a buying roadmap that highlights where states will fund, procure and scale solutions over the next 12-24 months.

In today’s era of modernization, state leaders are vying for technology tools and solutions that are AI-enabled, secure, accessible and delivered with fiscal prudence. IT companies that can align with multiple priorities at once will be well-positioned.

Key Takeaways:

AI solutions must be “enterprise-ready,” moving from pilot to productions with the proper guardrails. Opportunities includes secure GenAI platforms with governance, auditability, and data controls; AI solutions embedded into existing workflows to tackle productivity challenges within HR, case management, public safety, finance, etc.; AI enablement tied to data quality, modernization and robust cybersecurity and resilience. If you are in this space, position AI as risk-aware productivity, capable of meeting SLG’s complex challenges without added risk.

As states pursue innovation, cybersecurity budgets will remain intact. Vendors and partners will see demand for security tools that easily integrate with cloud and AI environments, zero trust architectures, third-party and supply-chain security, incident response, ransomware resilience and cyber insurance alignment. Vendors that position IAM as an enterprise enabler will resonate with decision-makers.

With budget and cost control continuing to take precedence in IT adoption strategies, IT companies that can demonstrate long-term ROI, pricing transparency, flexibility and predictable OPEX models will be positioned for success. Tying your solutions capabilities to things like workforce productivity and task automation will be key.

Application and infrastructure modernization is still foundational to future technology adoption. In 2026, state and local governments will be looking for modern solutions that integrate with security, accessibility and cost control goals. There will be demand for legacy system migration, low-code/no-code tools that can help address staffing challenges, cloud-native, SaaS and modular platforms.

IT companies that can bake accessibility into technology design will see greater opportunities to be a trusted partner in states’ digitization journeys. There will be a continued need for citizen portals, identity-enabled digital services and accessibility testing and monitoring tools.

The ongoing focus on strong data management, cloud frameworks and consolidation signals that state and local governments are optimizing existing infrastructures. IT companies that can support multi- and hybrid cloud environments, enable shared services, provide robust data governance and interoperability and reduce technology sprawl across agencies will see success.

In 2026, it is clear that state leaders will prioritize secure, governed AI and modern solutions that deliver measurable cost control and enhanced digital services. IT companies that align solutions with CIO priorities, while demonstrating fiscal discipline, security and compliance, will be well-positioned to win business in the SLED market.

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About the Author: Yvonne Maffia is the senior analyst covering state, local and education markets. She applies insights and analysis to purchasing trends to help vendors and partners shorten their sales cycles. Prior to joining TD SYNNEX Public Sector, Yvonne spent 8 years working in state and local government, where she oversaw advisory boards across the State of Florida and served as an analyst to a local politician. Yvonne currently lives in Washington, DC.