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Jul 21 2025
Management

States Face Cybersecurity Challenges, Likely With No More Federal Help, NASCIO Says

Government experts discussed tech trends for state and local governments in a recent webinar.

The State and Local Cybersecurity Grant Program is unlikely to be reauthorized after fiscal 2025, its final year, said Doug Robinson, executive director of the National Association of State Chief Information Officers, in a recent webinar.

“It is unlikely based on current prognostications that it’s going to be reauthorized,” Robinson told webinar attendees on July 15.

NASCIO testified before the House Homeland Security Committee in favor of the program earlier this year, urging reauthorization. “But again, I suspect one of the challenges is going to be competition with many other cuts in the federal government and to [the U.S. Cybersecurity and Infrastructure Security Agency] and the entire DHS budget,” Robinson said.

Questions lingered as to whether the final-year funding for the four-year, $1 billion program would be “clawed back” as part of a Congressional rescission package.

“Latest intel says it’s not going to be included, and so the states may get their final portion,” Robinson said.

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Robinson delivered those insights during a webinar presented by the Public Technology Institute, “State and Local IT: Plotting Your Course Through Shifting Tides.” The PTI presentation is an annual look at tech trends for state and local government CIOs.

Discussing cybersecurity, ranked as the No. 1 concern among NASCIO’s 2024 State CIO Top 10 Priorities, Robinson discussed the federal cybersecurity grant program in the context of challenges facing state governments. Those challenges also include hiring qualified workers and implementing whole-of-state approaches, a big opportunity for cost savings through shared services.

In the webinar, Robinson addressed two other state CIO priorities that made the annual top 10 list: enhancing citizen services and modernizing IT systems.

Facing a demand for more digital services, state CIOs strive to improve the citizen experience, adopt citizen-centric design, streamline services, embrace automation and authenticate access with citizen identity management.

“Every state CIO aspires for a modern environment, which continues to be a challenge with technical debt and legacy environments that still exist. That does not prevent them from doing more cloud and [Software as a Service] adoption,” Robinson said.

State Governments Face AI Adoption Challenges

The NASCIO 2024 CIO survey ranked priority technologies, and artificial intelligence was rated No. 3. Robinson highlighted adoption challenges for generative AI in the webinar.

“The word of the year for 2025 is ‘uncertainty’ for state and local IT,” Robinson said. “A lot of federal funding has already been cut or it’s at risk for some programs.”

There’s been a great deal of legislative activity related to GenAI in the past two years, Robinson said. And NASCIO fought against inclusion of a provision in the recent congressional budget reconciliation bill that would have prevented states from establishing independent AI regulations for 10 years.

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Although the provision did not make the current bill, NASCIO believes Senate and House supporters will try again and attempt to add it to future legislation.

“We are not going to be complacent and stand by. We are going to continue to monitor this,” Robinson said.

He identified some other challenges for states adopting GenAI:

  • Lack of enterprise governance
  • Poor data quality and integrity
  • Lack of training for state workforces
  • Use of shadow GenAI by employees
  • Budget constraints
  • Limits of existing technical infrastructure

State governments continue to apply GenAI solutions primarily to business digital services and cybersecurity processes, Robinson said; 90% of state governments are running some sort of AI pilot, but they largely lack dedicated funding.

Local Governments Move Into AI Deployment

Adam Frumkin, CIO of the Franklin County (Ohio) Data Center and PTI Leadership Council chair, presented some insights into local government technology trends.

“Over the last six months, we have seen governments move beyond AI curiosity to real deployment, especially from a generative AI perspective,” Frumkin said.

Local governments are exploring AI opportunities that include:

  • Streamlining citizen services
  • Improving data analysis
  • Reducing manual workloads

RELATED: Can AI replace human Intelligence amid federal cybersecurity budget cuts?

But they face challenges in the areas of governance, risk management, ethics, procurement and workforce training, Frumkin said. To tackle these challenges, local governments are producing AI policies and appropriate-use guidelines, launching pilot projects and using predictive analytics.

“Citizen expectations are driving our transformation,” Frumkin said. “Citizens are now expecting government services to be more accessible, fast and intuitive.” 

Strong digital services are now a trust and equity issue, he added. PTI’s research reveals that people do not trust government webpages. Governments can rebuild that trust with improved user experiences.

PTI will host its annual conference, the GOVIT Leadership Summit and Symposium, on Nov. 18-20 in Bloomington, Minn. This year’s theme is “Navigating Change in Uncertain Times: Let’s Solve Today’s Challenges — Together!” The conference “brings the local government IT community together to share leading practices and lessons learned and to dive into the emerging trends impacting government tech and service delivery,” according to PTI’s website.

Frumkin delivered the webinar insights in Alan R. Shark’s stead; the longtime PTI executive director retired in May after leading the institute for more than 20 years.

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