States Face Cybersecurity Risks as Federal Funding Deadline Nears

State and local governments face increasing cybersecurity threats as federal support for the State and Local Cybersecurity Grant Program nears another deadline. According to PoliticoPro on August 21, attacks across states, including Maine, South Dakota, Wisconsin, Texas and Oklahoma, disrupted municipal services; these attacks compromised IT systems, phone lines and online payments, exposing ongoing staffing and funding shortages. The grant program helps states strengthen security protections, train workers and support vulnerable sectors, but uncertainty over reauthorization risks widening the gap between cyber risks and local defenses. Alex Whitaker, director of government affairs for the National Association of State Chief Information Officers, said there are “some great champions” in Congress, “but there’s a lot of daylight between what actually works and what needs to pass.”

AI Assisting States with Digital Accessibility Tasks

A new report from the National Association of State Chief Information Officers digs into the use of artificial intelligence in state government to assist with accessibility tasks. “Here to Stay, Here to Grow: A National Portrait of State Digital Accessibility Officers” breaks down the findings from the NASCIO State Digital Accessibility Officer Survey, administered in Summer 2026. NASCIO compiled answers from accessibility officers in over 30 states. Top answers for those enterprise accessibility tasks assisted by AI include automated testing, code remediation suggestions, captioning and transcription, content quality checks, monitoring and reporting, as well as document remediation. “The strongest general enterprise use cases for accessibility and AI,” explains the report, “fall where work can be accelerated without making authoritative, judgement-based decisions. This is in line with earlier findings highlighting staffing and resource constraints; AI may be a viable solution to reducing workforce burden from repetitive, high-volume tasks.” Of the 20% of states using artificial intelligence to help meet the DOJ Final Rule requirements, most looped a person into the process, the August report revealed.

State CIO Survey: Digital Identity Foundational for Modern Government

New research from NASCIO finds states see digital identity as a crucial component of modern government, with moves towards enterprise systems. “Based on responses from CIOs, CISOs and CTOs in 47 states and territories, the research highlights growing efforts to create a more seamless ‘digital front door’ for residents while strengthening identity assurance, fraud prevention and cybersecurity.” The report points to enterprise identity platforms, adaptive security, reusable credentials and digital wallets as key parts of a broader move toward secure, interoperable and citizen-centered digital identity systems. The August 25 report, Citizen Digital Identity Management: Findings from a Survey of the States, noted the “significant trend” of digital wallets; many respondents mentioned future plans for mobile licenses, along with digital wallet frameworks.

States face significant barriers and challenges in planning and delivering citizens digital identity management. These include:

  • Inadequate funding
  • Siloed solutions
  • Organizational resistance
  • Technical debt
  • Inconsistent governance

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