OMB Provides a Federal IT Progress Report
Published: December 18, 2024
Federal Market AnalysisArtificial Intelligence/Machine LearningCybersecurityDigital GovernmentGovernment PerformanceInformation Technology
The OFCIO Impact Report issued last week highlights the technological accomplishments in the last four years.
Last week, the Office of the Federal Chief Information Officer (OFCIO) under the Office of Management and Budget (OMB) released the 2024 Impact Report, signaling the actions and progress taken in federal information technology in the past four years.
“Technology underpins the Federal Government’s ability to secure its systems and data from adversaries and deliver services to the American people that meet today’s expectations,” according to the report’s opening statement.
The impact report highlights the partnerships among agencies, industry and academia as propelling advancements in federal technology, “This is just the beginning, and future Federal CIOs should leverage and continue to build these partnerships to further accelerate progress and deliver impact with taxpayer dollars.”
By emphasizing the different IT segment achievements of the last four years, the report offers a glimpse into the potential areas of focus in technology for the next four years. Below are the report’s four key priorities with an associated outlook on what might take place under the incoming Trump Administration for each.
Cybersecurity
Referencing the Biden Administration’s cybersecurity executive order (EO) and subsequent zero trust strategy, the report highlights agency achievement in meeting cybersecurity milestones such as securing software, enabling continuous monitoring, and deploying multi-factor authentication and encryption. The report also highlights the push for agencies to become “quantum resistant” prior to the technology evolving and becoming a threat to encrypted infrastructure. Moreover, the report identifies a $3.1B surplus in cybersecurity funding from FY 2022 to 2025 (requested).
Outlook: cyber modernization tends to be a “shared” issue among administrations and will continue being a national priority as the number and complexity of cyber attacks increase. Looking back, the initial Trump presidency released a national cybersecurity strategy in response to the rise in cyber activity. Looking forward, the incoming Trump platform promises to protect critical infrastructure with an emphasis on increasing security standards, signaling increased investments for offensive and defensive cyber capabilities.
In terms of quantum, the initial Trump office broadened the pursuit of quantum computing with the National Quantum Initiative. Based on that, and the incoming administration’s repeated vows to for global leadership over China, the next administration is likely to continue efforts in post-quantum cryptography.
Technology Modernization and Data
The report boasts of improvement in federal open data initiatives, citing increases in open data resources and data inventory requirements, as well as facilitating open data practices. The report also points to increased funding and awards under the Technology Modernization Fund (TMF), particularly bolstered by a $1B allocation under the American Rescue Act (ARA) in which 69 investments were made with ARA funds.
Outlook: IT modernization, likewise, tends to be a bipartisan issue. The OPEN Government Data Act of 2019 was enacted under the first Trump Administration and the continuance of open data initiatives is expected. However, the future of the Technology Modernization Fund under the incoming administration is unclear. Available funds under the TMF are dwindling, and Trump 1.0 saw the passage of smaller funds for the program, making a repeated infusion of dollars that the TMF saw from the ARA doubtful. TMF’s recent annual report highlights key changes in FY 2025 with updated selection criteria, expanded board members, and new community engagement efforts. Thus far, Trump 2.0 has not commented on any plans with regards to the TMF.
Artificial Intelligence
Centering the AI section of the report on the Biden Administration’s AI EO and subsequent OMB memos on agency use, acquisition and authority over the technology, the report cites advances in AI governance, managing AI risk, and strengthening innovation. The impact report also places emphasis on public trust of AI and training the federal workforce.
Outlook: the incoming Trump Administration has been vocal about scaling back or repealing Biden’s EO in favor of reduced regulation over AI to allow for expanded innovation. While AI investment is almost certain under the next Administration, particularly to drive global competition with China, contractors can expect policy changes in federal guardrails to allow accelerated adoption of AI solutions.
Digital Experience and Service Delivery
The report expounds on the digital experience team set up to prioritize federal customer experience, identifying improvements in visibility, assessment, cross-agency coordination and accountability.
Outlook: The Department of Government Efficiency (DOGE) announced for the incoming administration is setting its sights on tech-enabled efficiency in government operations, potentially translating to an expansion in digital services delivery. Improving customer experience with federal services was also a goal under the initial Trump Administration’s President’s Management Agenda and likely to appear again under Trump 2.0.
Compared to other sectors, federal technology initiatives tend to experience continuity from one administration to the next. The same is likely to hold true with the incoming administration. Despite this, the “how” factor in technology modernization may look different under the next Trump administration.
Commenting on the government’s measurement of success, the report concludes, “At the end of the day, the Government’s success is not measured by what any single team or administration accomplishes alone, but by how effectively it is meeting the needs of the millions of people it serves. While there’s more to be done, OMB and agencies have made great strides and are committed to delivering the Federal Government the American public deserves.”