State and Local Public Sector Innovation Act
Sponsored By: Representative Foushee, Valerie P. [D-NC-4]
Introduced
Summary
Modernizing state and local government IT is the bill's main goal. It would create a federal grant program that provides $500 million each year from 2027 through 2030 to help states and local governments update technology, strengthen cybersecurity, adopt AI and post-quantum cryptography, hire and train staff, and meet data and privacy mandates.
Show full summary
- State technology departments would get grants split into two equal streams. Fifty percent would be allocated by population and fifty percent by a needs-based assessment run by the Assistant Secretary.
- Local governments and political subdivisions would receive at least 70 percent of each state's grant for projects like cybersecurity upgrades, AI-related infrastructure, permitting modernization, staff hiring, and training.
- The Assistant Secretary would run the program, require a survey within one year to assess needs and compliance with covered mandates, provide technical assistance and guidance, consult stakeholders, and may require up to a 15 percent set-aside for states that do not meet mandates.
*Would require $500 million in annual appropriations for fiscal years 2027–2030, increasing federal spending by $500 million per year over that period and likely adding to the deficit unless offsets are provided.*
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Bill Overview
Analyzed Economic Effects
1 provisions identified: 1 benefits, 0 costs, 0 mixed.
State and local tech modernization grants
This bill would create a federal grant program to modernize technology used by State and local governments. It would authorize $500 million per year for each fiscal year 2027 through 2030. Each year, half the money would be split among States by population and half by State modernization need as determined by a required survey. Grants would go to each State’s designated State technology department and at least 70% of each State grant would have to be given directly to local governments. The Assistant Secretary would set up the program within one year, require a compliance survey within one year, offer technical help, publish guidance (including AI-notification rules), and could set aside up to 15% of a State’s grant if the State fails to meet required data and cybersecurity mandates.
Sponsors & CoSponsors
Sponsor
Foushee, Valerie P. [D-NC-4]
NC • D
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
No roll call votes available for this bill.
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