This Week in Government Tech Media – July 11, 2025

By Brad Bass /

Like their counterparts in the mainstream media, reporters in the government tech space early this week covered the implications of the Trump administration’s megabill outlining plans for funding the government going forward. There was much in the bill that touched on technology, and the coverage focused on areas where the bill would promote government tech programs as well as areas where it would cut funding. Here is a roundup of those stories from the past week:

Winners: DOD, DHS, AI and Cyber

The Department of Defense (DOD) and the Department of Homeland Security (DHS) will receive huge amounts of funding, including to programs focused on artificial intelligence and cybersecurity:

  • Weslan Hansen of MeriTalk provides an analysis of tech-related provisions in the spending bill, including cyber and AI-related funding for the Pentagon, rural healthcare systems and border protection.
  • The DOD will get $150 billion in funding under the bill, including new investments in cyber defense, offensive operations and workforce development, as reported by David DiMolfetta in Nextgov/FCW.
  • The U.S. Cyber Command received $250 million in funding related to artificial intelligence (AI) – on top of cyber funding for the Defense Advanced Research Projects Agency, the U.S. Indo-Pacific Command, the Coast Guard and others, according to reporting by Tim Starks for CyberScoop. Starks’ colleague Mark Pomerleau wrote in sister publication DefenseScoop that the allocation “follows congressional direction to prod the command to develop an AI roadmap.” In a related article, Pomerleau reported that the Cyber Command plans to increase its support of the Indo-Pacific Command’s tech programs for network sensing, data feeds and analytics.
  • Justin Doubleday of Federal News Network noted that the DHS is prepping for an “unprecedented spending surge” that includes $50 billion for a border wall and related technology as well as $700 million in IT investments for Immigration and Customs Enforcement (ICE).
  • The bill also extended a lifeline to an oversight committee set up by Congress that uses data analytics to identify fraud. Natalie Alms reported for Nextgov/FCW that the committee was to expire this September, but now is funded through 2034.
  • State governments celebrated the deletion of a proposed provision to the bill that would have put a moratorium on state regulation of AI. However, Chris Teale wrote in Route Fifty that the moratorium idea probably will resurface.

Programs in Peril

Despite the strong funding mentioned above, several reporters noted that the bill and various agency budgets now in the works will cut funding for important tech programs and capabilities, such as these below:

  • Direct File – The megabill directs the IRS to pull the plug on the agency’s free, online tax filing system and instructs program leaders to come up with a replacement system, according to a Nextgov/FCW report by Alms. In MeriTalk, Grace Dille wrote that the bill appropriated $15 million for a Treasury Department task force to determine the cost of replacing the program.
  • Cybersecurity for healthcare – Several witnesses at a Senate hearing this week testified that the bill will “have a devastating impact on cybersecurity and basic services in a health care sector,” according to coverage by Derek B. Johnson for CyberScoop.
  • Election security – Colin Wood reported in StateScoop that a survey of local election officials indicated that a majority are concerned about election security services budget cuts made by DHS. Wood also published a piece on a letter from congressional Democrats asking the DHS Cybersecurity and Infrastructure Security Agency (CISA) for information on how it will support state and local election offices.
  • Traffic Coordination System for Space (TraCCS) – Industry groups are petitioning Congress to restore funding for the National Oceanic and Atmospheric Administration’s (NOAA) system to coordinate satellite traffic, a development covered by Madison Alder in FedScoop. In Via Satellite, Rachel Jewett quoted the groups’ letter to Congress as stating proposed cuts would place “critical missions in harm’s way.” The industry groups that signed the letter represent more than 450 aerospace companies, according to an article by Michael Marrow in Breaking Defense.
  • The Government Accountability Office (GAO) – Jory Heckman of Federal News Network reported that the Senate rejected a House proposal to cut funding for the watchdog agency by 50% and is instead recommending maintaining current spending levels.

Events Next Week

Finally, we’re adding a new feature to this newsletter: a list of events we think might be worth your attention in the coming week. Below, you’ll see links to each event along with information about the sponsoring organization and venue:

That covers the trending news for this week. If you find this information helpful, please share it with your colleagues. Subscribe to this newsletter on LinkedIn or via the form below. See you next week!

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