Ever to Conquer: The Relentless Pursuit of Public Sector Innovation

Welcome to this week's edition as we continue building a coalition of leaders from all across the public sector ecosystem. This week's briefing includes:

• AI’s Breakthroughs and Backfires: From slashing red tape to stumbling in rollouts, AI’s reshaping government—but not without growing pains.

• Cybersecurity’s Crunch Time: Budget cuts and rising threats put agencies on edge, creating openings for innovative defenses.

• Procurement’s New Playbook: Big budgets and bold policies are rewriting how tech gets bought, with opportunities for agile vendors.

• Data Privacy’s Tightrope: Trust is the currency as agencies navigate surveillance fears and strict new laws.

• IT Modernization’s Momentum: Cloud and digital tools are transforming services, but execution is everything.

• Policy’s Power Plays: Regulatory battles and workforce shifts are setting the stage for what’s next.

Onward!

AI and Government Innovation

AI isn’t just hype—it’s rewriting the rules of governance and opening doors for bold industry players.

Colorado’s AI Permitting Breakthrough Slashes Red Tape

Colorado’s Department of Natural Resources has unleashed an AI system that’s cutting permitting times by 40%, using predictive analytics to sift through decades of environmental data and flag compliance risks [Source: StateScoop, Jun 2025]. The result? Renewable energy projects are moving faster, and other states are eyeing the tech with envy.

• Why It Matters: For SLED buyers, this is a blueprint for slashing bureaucratic delays; for sellers, it’s a golden ticket to pitch AI that tackles legacy pain points.

• Actionable Insights:

  • For Buyers: Launch AI pilots for repetitive tasks like zoning or licensing—start small, measure big.

  • For Sellers: Build AI tools that play nice with old systems and scream ROI to budget-conscious agencies.

Pentagon’s $500M AI Startup Gambit Shakes Up Defense

The DoD just dropped a $500M bombshell at the AI+ Expo, courting startups to deliver real-time battlefield analytics and outpace global rivals [Source: DefenseNews, Jun 2025]. General Sarah Zabel didn’t mince words: “We need Silicon Valley’s hustle—or we’re toast.”

• Why It Matters: FED buyers get a fast lane to cutting-edge tech; sellers get a shot at a massive defense pie if they can prove their mettle.

• Actionable Insights:

  • For Buyers: Push for agile RFPs that prioritize speed and security—don’t get stuck in red tape.

  • For Sellers: Zero in on battlefield-ready AI—like autonomous drones or logistics prediction—and nail DoD compliance.

FDA’s AI Flop ‘Elsa’ Triggers a Federal Reckoning

The FDA’s shiny new AI tool “Elsa” crashed and burned after a hasty rollout, leaving egg on the agency’s face and sparking a GAO probe into AI readiness across government [Source: NextGov, Jun 2025]. The fiasco? No testing, no trust, and a whole lot of chaos.

• Why It Matters: Buyers need to get AI right or risk epic flops; sellers can swoop in with battle-tested solutions to save the day.

• Actionable Insights:

  • For Buyers: Roll out AI in phases—test it ‘til it breaks before it breaks you.

  • For Sellers: Bundle deployment support and training with your AI pitch—agencies are spooked and need hand-holding.

Cybersecurity Under Pressure

The stakes are sky-high as cyber threats evolve faster than defenses can keep up.

CISA’s $135M Budget Slash Ignites a Firestorm

A House panel just greenlit a $135M cut to CISA’s FY 2026 budget, even as ransomware and nation-state hacks skyrocket [Source: Cybersecurity Dive, Jun 2025]. Industry leaders are sounding the alarm: critical infrastructure’s on the chopping block if this sticks.

• Why It Matters: FED and SLED buyers face a resource crunch; sellers can step up with lean, mean cybersecurity fixes.

• Actionable Insights:

  • For Buyers: Fight for funds, but scout affordable tools that punch above their weight—like AI threat detectors.

  • For Sellers: Market cost-effective, FedRAMP-ready solutions to cash-strapped agencies desperate to plug gaps.

Ransomware’s New Playground: Water Utilities Under Siege

Ohio and Texas water systems got hammered by ransomware that exploited creaky operational tech, prompting CISA and the FBI to roll out an OT security playbook [Source: FedScoop, Jun 2025]. The attacks didn’t just lock systems—they threatened clean water for millions.

• Why It Matters: SLED buyers need OT armor yesterday; sellers can ride this wave with specialized defenses.

• Actionable Insights:

  • For Buyers: Team up with vendors for quick OT upgrades—your citizens can’t wait.

  • For Sellers: Craft ransomware shields for utilities, with compliance baked in—think CISA-approved and ready to roll.

Chinese Hackers Breach DoD Contractors in Supply Chain Coup

A slick Chinese cyber op infiltrated three major DoD contractors, exposing how fragile the supply chain really is [Source: NextGov, Jun 2025]. The breach nabbed sensitive specs, and now everyone’s pointing fingers.

• Why It Matters: FED buyers need tighter vendor oversight; sellers can shine by locking down the chain.

• Actionable Insights:

  • For Buyers: Vet your partners’ cybersecurity like your mission depends on it—because it does.

  • For Sellers: Pitch supply chain risk tools—think real-time monitoring—that scream “trust us.”

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Procurement and Partnerships

Big money and big fights are rewriting the playbook for government tech buys.

DoD’s $1T Budget Bets Big on Hypersonics and Space

The 2026 defense budget’s closing in on $1.05T, with $200B funneled into next-gen toys like hypersonic missiles and space-based surveillance [Source: Defense Daily, Jun 2025]. Oh, and there’s a $5B small business carve-out for naval tech—game on.

• Why It Matters: FED buyers have cash to burn but need results fast; sellers can cash in by hitting the right targets.

• Actionable Insights:

  • For Buyers: Cut the fat from acquisition—focus on speed and innovation.

  • For Sellers: Aim at hypersonics or ISR, and don’t sleep on those small business set-asides.

DOGE’s AI Procurement Push Hits a Legal Wall

The Department of Government Efficiency (DOGE) wanted AI to slash VA contracts, but a federal judge slammed the brakes over privacy fears, leaving the plan in limbo [Source: EFF, Jun 2025]. Unions and vets are cheering, but efficiency’s taking a hit.

• Why It Matters: Buyers face a compliance minefield; sellers need to pivot hard to stay in the game.

• Actionable Insights:

  • For Buyers: Double-check DOGE deals for legal potholes—don’t get caught flat-footed.

  • For Sellers: Lead with privacy-first AI—transparency’s your ticket past the scrutiny.

SLED’s $10B Broadband Bonanza Kicks Off

New federal grants are pouring $10B into broadband and smart cities, with Michigan and Nevada racing to snag the cash for 5G and IoT rollouts [Source: Smart Cities Dive, Jun 2025]. It’s a feeding frenzy for local projects with national muscle.

• Why It Matters: SLED buyers can transform communities; sellers can lock in long-term wins.

• Actionable Insights:

  • For Buyers: Pair with vendors who know federal rules—speed’s your edge.

  • For Sellers: Push turnkey 5G or IoT kits—make it easy for cities to say yes.

Data Privacy & Protection

Privacy’s the third rail of public sector tech—touch it wrong, and you’re toast.

DHS Social Media Snooping Sparks a Lawsuit Storm

DHS’s plan to mine social media for immigration intel got hit with lawsuits claiming it’s a Privacy Act trainwreck [Source: EFF, Jun 2025]. Critics say it’s Big Brother gone wild; DHS says it’s just security.

• Why It Matters: FED buyers need squeaky-clean data tools; sellers can win by keeping it legal.

• Actionable Insights:

  • For Buyers: Demand airtight compliance from your tech stack—lawsuits aren’t cheap.

  • For Sellers: Offer analytics that dodge privacy landmines—think anonymized and auditable.

California and NY Schools Lock Down EdTech Data

New laws in California and New York are clamping down on student data, forcing K-12 vendors to prove they’re FERPA bulletproof [Source: EdScoop, Jun 2025]. One slip, and it’s game over for contracts.

• Why It Matters: SLED buyers want trust; sellers need to deliver it or get left behind.

• Actionable Insights:

  • For Buyers: Pick vendors with encryption and audit chops—kids’ data isn’t a gamble.

  • For Sellers: Flash your FERPA badge loud and proud—security’s your sales pitch.

Government IT Modernization

Out with the old, in with the bold—agencies are racing to catch up.

GSA’s Cloud-First Leap Hits 80% by 2027

The General Services Administration’s betting big on cloud, aiming to shift 80% of its apps to AWS and Azure by 2027 [Source: FedScoop, Jun 2025]. It’s a full-on sprint to ditch the server closets.

• Why It Matters: FED buyers need seamless transitions; sellers can cash in on the cloud boom.

• Actionable Insights:

  • For Buyers: Lean on multi-cloud pros—downtime’s not an option.

  • For Sellers: Pitch migration magic—zero disruption, max security.

Chicago’s Digital Portal Slashes Permit Times in Half

Chicago’s new online permitting system cut wait times by 50%, and now cities like Austin and Raleigh are copying the playbook [Source: StateScoop, Jun 2025]. Citizens love it; bureaucrats are breathing easier.

• Why It Matters: SLED buyers see a citizen-first win; sellers can scale this success nationwide.

• Actionable Insights:

  • For Buyers: Hunt for platforms with real-world wins—copy what works.

  • For Sellers: Show off user-friendly tech with SLED case studies—proof beats promises.

Public Policy

Policy’s pulling the strings—ignore it, and you’re out of tune.

AI Regulation Tug-of-War Splits Congress

A Senate bill wants to override state AI laws, but SLED leaders are pushing back, saying it kills local control [Source: NextGov, Jun 2025]. The result? A compliance mess looms on the horizon.

• Why It Matters: Buyers face a patchwork of rules; sellers need to stay nimble.

• Actionable Insights:

  • For Buyers: Track both federal and state moves—don’t get blindsided.

  • For Sellers: Build AI that flexes with any regulation—future-proofing’s your edge.

Telework’s Death Rattle Boosts Hybrid Tech

The Trump admin’s war on federal telework is forcing agencies to scramble for secure hybrid tools [Source: GovExec, Jun 2025]. Remote work’s fading, but the tech needs are roaring back.

• Why It Matters: FED buyers need flexibility fast; sellers can ride the wave with the right gear.

• Actionable Insights:

  • For Buyers: Grab FedRAMP-approved collab tools—security’s non-negotiable.

  • For Sellers: Push VPNs and hybrid platforms—agencies are buying now.

Why This Matters

The public sector IT game is heating up. AI’s promising miracles but tripping over its own feet, cybersecurity’s a battlefield with shrinking ammo, and procurement’s a wild west of opportunity and chaos. For FED and SLED buyers, it’s about threading the needle—innovation, security, and trust. For sellers, it’s a chance to shine in a crowded ring if you bring the right tools. These aren’t just headlines—they’re your next move.

Onward!

Thanks for riding with Ever to Conquer. Drop us your thoughts, subscribe for the next round, and let’s keep pushing the public sector tech frontier—together.

References & Sources

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• [62] "Phoenix light rail extension opens", Julie Strupp, https://www.smartcitiesdive.com/news/phoenix-light-rail-extension-opens/750296/

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