State and Local Public Sector Innovation Act
- Bill Number
- H.R. 8926
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Science, Technology, Communications
- Status
- Introduced
- Latest Action
- 2026-05-20: Referred to the House Committee on Energy and Commerce.
- Last Updated
- 2026-06-29T13:44:19Z
AI-Generated Summary
Summary of H.R. 8926: State and Local Public Sector Innovation Act
Purpose
This legislation directs the Assistant Secretary of Commerce for Communications and Information to create a grant program that provides funding to state and local governments for modernizing their technology systems, with the goal of enhancing the security and effectiveness of public services.
Key Provisions
- Grant Program Establishment: The Assistant Secretary must set up the program within one year of the Act's enactment.
- Funding Distribution: Each fiscal year, grants are allocated to states with 50% distributed based on state population proportions and 50% based on assessed needs for technology modernization.
- Grant Recipients and Uses: Funds are provided to designated state technology departments. Eligible uses include purchasing or updating technology and infrastructure (including artificial intelligence), conducting needs testing, updating permitting processes, establishing cybersecurity systems, hiring and training staff, transitioning to post-quantum cryptography, and complying with specified mandates.
- Local Allocation Requirement: At least 70% of grant funds for each state must go directly to political subdivisions (local governments).
- Compliance Set-Aside: Up to 15% of funds may be reserved if a state is not meeting certain data and cybersecurity standards.
- Survey and Assessment: The Assistant Secretary must conduct a survey within one year to evaluate state technology needs, readiness, and compliance with "covered mandates" (such as having a Chief Data Officer, implementing data privacy and life-cycle policies, and following National Institute of Standards and Technology frameworks).
- Technical Assistance and Guidance: The Assistant Secretary provides support on data security, privacy, cyber threats, and mandate compliance, and publishes guidance on fund usage, technical standards, and artificial intelligence notifications to the public.
- Consultation and Reporting: Consultation with academia, industry, civil society, and government experts is required. A briefing to congressional committees is mandated after four years, covering program impacts, challenges, and recommendations.
- Authorization: $500,000,000 is authorized annually for fiscal years 2027 through 2030.
Significant Changes to Existing Law
This Act introduces a new federal grant program for state and local technology modernization. It does not amend or repeal existing statutes but adds requirements for compliance with data management and cybersecurity standards as conditions for receiving funds.
Potential Impacts
- Government Agencies: The National Telecommunications and Information Administration (NTIA) gains authority to administer grants, conduct surveys, and provide technical assistance, potentially increasing its operational scope.
- State and Local Governments: Eligible entities receive resources to upgrade systems, which may improve service delivery and security but requires adherence to federal standards.
- Citizens: Indirect benefits could include more secure and efficient public services, though no direct provisions address individual rights.
- International Relations: No provisions in the legislation address international matters.
Main Stakeholders Affected
- State governments and their designated technology departments.
- Local governments and political subdivisions.
- Federal agencies, particularly the Department of Commerce and NTIA.
- Congressional committees on commerce, science, and technology.
- Entities involved in technology modernization, such as vendors for artificial intelligence and cybersecurity systems.
Notable Legal, Constitutional, or Political Implications
The legislation ties federal funding to state compliance with specific data and cybersecurity standards, which may raise considerations under the Spending Clause of the U.S. Constitution regarding conditional grants to states. It emphasizes federal oversight through surveys and set-asides but includes no explicit constitutional or political analysis within the bill text.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. Foushee, Valerie P. [D-NC-4]
Recent Actions
- 2026-05-20: Referred to the House Committee on Energy and Commerce.
- 2026-05-20: Introduced in House
- 2026-05-20: Introduced in House
Bill Versions
- State and Local Public Sector Innovation Act — issued 2026-05-20 — PDF (9 pages)