The US government is headed for disruptive digital transformation in 2026
In 2026, the U.S. government has big plans to shake up public sector technology. With President Trump expected to kick off the year with a national cybersecurity strategy to focus on strengthening infrastructure protection — as well as plans to leverage innovative technology to deliver more secure government services — the public sector might be in for the much-needed shot in the arm that many administrations promised but failed to deliver on.
For decades, the U.S. government has been stricken with inertia and a stubborn reluctance to part with legacy technologies. In 2025, however, we witnessed crucial steps in the right direction to adopt technology that is more secure and efficient in the public sector. While some of 2025’s most memorable modernization efforts were focused on the hot topic of the year — artificial intelligence — other initiatives have been just as future forward.
Over the summer, the White House established a new National Design Studio, which, among other efforts, will make federal websites more efficient and user friendly. Given that the federal government consistently ranks among the lowest organizations in terms of customer experience and digital government experiences have consistently ranked lower than in-person experiences, this is an incredibly important upgrade. While many government IT initiatives have behind-the-scenes impacts, this one will improve the lives for taxpayers.
This more comprehensive program builds on other crucial digitization initiatives, including the Office of Personnel Management announcing in May that it was rolling out a fully online retirement application system for federal employees. This follows the State Department launching an online passport renewal system in late 2024, with the platform handling about half of all passport renewal applications as of August 2025. Taxpayers want intuitive and accessible public services, including user-friendly government websites. The National Design Studio is expected to continue closing the gap between American private-sector design and government website design in 2026.
In December, the Department of Transportation announced that the agency is transitioning its more than 50,000 employees to Google Workspace. The DOT is responsible for the infrastructure and services that safely and efficiently move millions of people and goods around the country — and it needs technology that prioritizes security, trust and resilience. This change is an incredibly important development as legacy technology vendors like Microsoft are notoriously insecure, with damaging and costly cyberattacks each year. DOT’s experience could lay the groundwork for other departments and agencies to reconsider their reliance on legacy IT vendors who have continuously fallen short on their security promises.
Microsoft, which is the dominant productivity software provider across the public sector, in particular has had a variety of issues in 2025 that should concern the U.S. government. The company was caught using engineers based in China to help maintain the Department of Defense’s systems, with minimal supervision by U.S. “digital escorts,” up until August. That same month, there was a major Microsoft Sharepoint breach by China-based hackers that compromised federal agencies, including the departments of Energy, Homeland Security, and Health and Human Services.
Over the past year, the federal government rolled out several major AI initiatives expected to deliver impact in 2026. These include a January executive order to reduce barriers to AI development, April guidance from the Office of Management and Budget to standardize agency use of AI, and the release of America’s AI Action Plan in July to accelerate innovation, infrastructure, and security leadership. In November, the Department of Energy launched the Genesis Mission to advance AI-driven research and productivity, followed in December by an HHS strategy to expand AI adoption in areas such as patient data analysis and drug development. Together, these moves set the stage for transformative, AI-driven efficiency gains across government in 2026.
From improving the design and usability of government websites to upgrading to more secure vendors, 2025 represented an incredibly important year for government technology. If 2025 is any indication, 2026 just might be the groundbreaking year that brings truly transformative innovation, modernization and security to federal IT.
Roger Cressey served in counterterrorism and cybersecurity positions in the White House under Presidents Clinton and George W. Bush. He is currently a partner at Mountain Wave Ventures, where he advises multiple technology and national security clients, including Microsoft partners and competitors, including Google Cloud, on cybersecurity issues.
