House Bill Targets State and Local Tech Gaps With Federal Grants

WASHINGTON, May 22, 2026 – State and local governments could soon receive federal grants to modernize technology systems, strengthen cybersecurity, and expand digital public services under legislation introduced Wednesday in the House.

Rep. Valerie Foushee, D-N.C., introduced the State and Local Public Sector Innovation Act, arguing that governments at the state and local level have been left behind as technology advances and federal infrastructure investment has focused largely on connectivity rather than the systems governments use to serve residents.

“While technology continues to advance at a rapid rate, state and local governments are too often left behind without the proper infrastructure and training to keep up,” Foushee said in a release.

The bill would direct the Commerce Department to establish a grant program funding technology purchases and upgrades, cybersecurity infrastructure, technology personnel, permitting modernization, and staff training for digital transformation.

Under the legislation, 70 percent of grant funding allocated to states would be required to flow to local governments within those states. The bill would also authorize Arielle Roth, in her capacity as Assistant Secretary of Commerce for Communications and Information, to reserve a portion of funding for regulatory enforcement activities.

The proposal has received support from the National Association of Counties. Nate Denny, North Carolina's secretary of information technology and state chief information officer, also backed the measure.

“This proposed investment would protect critical infrastructure and individual privacy, optimize state resources, and ensure local governments can provide a meaningful digital experience,” Denny said.

If enacted, the bill would task the National Telecommunications and Information Administration, the Commerce Department agency overseeing federal broadband and digital infrastructure programs, with administering the grant program.