At the same time, states are still divided on how to organize identity programs. Half report centralized approaches, while 39% operate in federated or hybrid models — a reflection of legacy systems and agency-level autonomy.
Sloan said Arizona is pursuing a hybrid strategy, building on existing investments while working toward a more unified platform.
“We have agencies that have identity solutions in place, and we’re seeking to meet them where they are so that we can get started,” he said.
That pragmatic approach underscores a broader reality: Most states are not starting from scratch. Instead, they are attempting to unify years of disconnected systems built independently across agencies.
Fragmentation, Funding Lead List of Barriers
The biggest obstacles are both technical and organizational.
According to the survey, 70% of respondents cited inadequate funding as the top barrier to implementing enterprise identity solutions. Fragmented and siloed identity systems (67%) and organizational resistance to enterprise approaches (67%) followed closely behind.
Sloan said those challenges resonate across the board.
“As I look down this list, they all appear in my world,” he said, pointing to issues ranging from legacy systems and interoperability to governance and cultural resistance.
Many of those legacy systems support critical services, particularly in health and human services, making modernization difficult.
“Those solutions that aren’t modernized yet — they’re not prepared for these new solutions,” Sloan said.
Beyond infrastructure, states are also grappling with fundamental questions about data ownership and privacy. Sloan emphasized a model in which agencies retain control of their data while identity systems act as connectors.
“All I want from you are status updates,” he said. “We want to be the connecting point … one place to find them, and one set of credentials.”
READ MORE: Explore elements for transforming government for citizens.
Identity as Foundation for Digital Services
The push for enterprise identity is being driven in part by rising expectations for digital government.
As states expand online services, identity becomes a prerequisite for delivering secure, “one stop” experiences.
“If you don’t know who’s who, or have an easy way for people to prove that, it’s going to be very hard” to move high-value services online, said Jeremy Grant, coordinator of the Better Identity Coalition, who participated in the panel.
Fraud is another major driver. Sloan pointed to widespread losses across government programs and said improving identity verification could significantly reduce financial risk.
“I think nobody would have a budget problem if the fraud went away,” he said.
At the same time, emerging technologies such as artificial intelligence are complicating the landscape. Sloan warned that synthetic identities and deepfakes are eroding trust in traditional verification methods, forcing states to rethink how identity systems work.
DIVE DEEPER: Modernizing identity management benefits government.
Toward Enterprise Identity and Adaptive Trust
Despite the challenges, states are moving toward a more unified vision.
Sloan described an evolution from fragmented logins and agency-specific systems toward enterprise identity platforms that support adaptive, risk-based authentication.
“Identity is the foundation,” he said, particularly as states build integrated digital service portals.
That future model would allow states to tailor identity verification to the sensitivity of a transaction, applying stronger authentication for higher-risk activities while maintaining usability.
It also reflects a broader shift in mindset among state CIOs, from treating identity as an IT function to recognizing it as core infrastructure for government services.
“This is about thinking about the people that we’re serving,” Sloan said, “not just what works for your organization.”
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