2026 SLED IT Hotspots

Published: July 31, 2026

SLED Market AnalysisCommunity DevelopmentEconomic Development/RegulationEducation (Higher)Education (Primary/Secondary)General Government ServicesHealth CareJustice/Public Safety & Homeland SecurityNatural Resources/EnvironmentPublic FinancePublic UtilitiesSocial ServicesTransportation

Where State, Local, and Education IT Budgets Are Moving in 2026 and What It Means for Vendors

2026 SLED IT Hotspots

A data-driven look at where state, local, and education (SLED) technology investment is heading in 2026 — and what it means for vendors positioning for the year ahead.

Inside the report:

  • Five IT categories under the microscope: AI and Machine Learning, Broadband and Digital Infrastructure, Cloud and IT Modernization, Cybersecurity, and Data Analytics/Business Intelligence, each broken down by bid volume trends, leading states, and which level of government is driving demand
  • How governors' State of the State addresses act as a leading indicator for procurement activity, and which states are already signaling next year's priorities
  • Real 2025 case studies of states and local governments putting these technologies into practice
  • A breakdown of the federal and state funding programs fueling this activity, and how those dollars trace down to SLED buyers
  • Closing takeaways built for vendors: where the compliance bar is shifting, which states are worth watching, and where the next wave of opportunity is likely to land

Download the full report for the data behind the headlines.

Prefer a quick look first? Access a complimentary summary of the report here.

Methodology (slide 6)

Governors’ Address Intelligence (slide 7)

Executive Summary (slide 8)

IT Hotspot Deep Dives (slide 9)

  • AI
  • Broadband and Digital Infrastructure
  • Cloud and IT Modernization
  • Cybersecurity
  • Data Analytics/Business Intelligence

Other Notable Technology (slide 45)

Funding Traceability (slide 48)

Key Takeaways for Vendors (slide 53)