Federal grants up to $500M a year would modernize state and local tech

What does this do?

HR 8926 would create a federal grant program run by the Commerce Department to help state and local governments update their technology systems. Eligible uses include buying new computer systems, improving cybersecurity, training government workers, and upgrading encryption. Any government office using artificial intelligence to interact with the public would be required to disclose that fact to users.

Who does it affect?

State and local governments, including cities, counties, tribal governments, U.S. territories, and the District of Columbia would be eligible recipients. Government employees in technology roles would be directly involved in carrying out the changes, and residents would be indirectly affected through the public-facing offices this bill targets.

Why does it matter?

States not meeting basic technology standards such as having a data privacy system or following federal cybersecurity guidelines could be required to set aside part of their funds to come into compliance. At least 70 percent of each state's share must be passed down directly to local governments, shaping how funding authority is distributed within states.

What does it cost, and who pays?

• Up to $500M available per year
• Funded 2027 through 2030
• Half split by population, half by need