Weekly Roundup: January 12-16, 2026

CYBERSECURITY & TECHNOLOGY

A Data Mesh Approach: Helping DoD Meet 2027 Zero Trust Needs. Defense Department explores data mesh architecture to meet 2027 zero trust deadline. Data mesh overcomes silos by providing unified distributed layer that simplifies and standardizes data operations. The approach addresses challenges of ingesting data from disparate sources while maintaining security across interconnected cloud, edge, and hybrid architectures. A single Air Force UAV can generate 70 terabytes of data in 14 hours—seven times more than Hubble Space Telescope generates annually.

CISA, Partners Release Guidance to Reduce OT Cyber Risks. CISA and partners released comprehensive guidance addressing operational technology cybersecurity vulnerabilities. The guidance targets critical infrastructure sectors to reduce risks in industrial control systems and operational technology environments increasingly targeted by cyber threats.

Integration Is Key to Zero Trust, Navy Cyber Leader Says. Navy cybersecurity leadership emphasized integration as central to successful zero trust implementation. The approach focuses on coordinating security controls across all domains rather than implementing isolated security measures.

Five Critical Cybersecurity Developments to Monitor in 2026. Federal cybersecurity policy enters a consequential year with key developments including: anticipated release of concise new national cyber strategy; expected reauthorization of Cybersecurity Information Sharing Act currently extended through January 30 with House and Senate advancing different approaches; CISA's landmark cyber incident reporting rule for critical infrastructure delayed until May 2026 to address industry concerns; integration of zero trust principles with AI security frameworks as agencies address AI as expanding attack surface; and persistent leadership vacancies at CISA and NSA-CYBERCOM requiring Senate confirmations. CrowdStrike's Drew Bagley emphasizes importance of applying visibility and security concepts proven in zero trust to rapidly proliferating AI deployments.

FEDERAL WORKFORCE TRANSFORMATION

OPM data overhaul reveals deeper federal workforce insights. The Office of Personnel Management launched a modernized workforce data platform, replacing the legacy FedScope system with enhanced analytics capabilities. The new platform reveals governmentwide staffing at decade lows, with over 300,000 federal employees departing in 2025—a net loss of nearly 220,000 when accounting for new hiring. The platform provides unprecedented visibility into retirement eligibility, telework levels, performance ratings, and bargaining unit status. Data shows union representation dropped from 56% to 38% of the federal workforce over the past year, and agencies reported a 75% decrease in telework hours between January and October 2025.

A sea of challenges opens up with 105,000 feds retiring. The Senior Executive Service declined by 551 members between 2024 and 2026, dropping from 7,887 to 7,336. The pipeline of GS-14 and GS-15 employees positioned to enter the SES also saw significant reductions. The GS-14 level experienced an 8,000-person drop that erases growth since 2023, while GS-15 reductions eliminate smaller growth since 2021. Leadership experts warn these reductions create "dangerous gaps" in mission-critical capabilities and narrow the talent pipeline for executive positions.

Presidential Rank Awards return in 2026. The Office of Personnel Management reopened nominations for the Presidential Rank Awards program, which the Trump administration had canceled for 2025. The prestigious honors program is reserved for career members of the Senior Executive Service and other senior career employees. Agencies have until February 5 to submit nominations to OPM for 2026 awards.

DATA GOVERNANCE & STATISTICAL INFRASTRUCTURE

America's Federal Statistical System Faces Crisis of Capacity and Trust. The nation's 13 principal statistical agencies face erosion across staff capacity, budgets, and public trust that threatens critical national decision-making data. Nancy Potok's American Statistical Association assessment reveals Census Bureau cancelled operations due to staff shortages, while newly recruited data scientists and AI specialists were lost during workforce reductions. Public willingness to participate in surveys has declined amid broader data privacy concerns. Potok advocates for comprehensive modernization led by a strong chief statistician, statutory reforms driving innovation, and coordination mechanisms—emphasizing the need is for strategic reform rather than simply more funding. The fragmented governance structure spanning multiple congressional subcommittees complicates coherent solutions.

Eight Data Trends Reshaping Federal Agencies in 2026. Federal agencies are fundamentally rethinking data foundations to support AI-driven operations, shifting from "collect and store" to "integrate and activate" paradigms. Key developments include AI-driven governance with automated metadata generation; consolidation of scattered tools into unified collaboration platforms; transition from centralized to federated architectures balancing autonomy with interoperability; deeper zero trust automation using policy-as-code approaches; and emergence of data professionals focused on human-AI collaboration. The transformation recognizes data as operational backbone for everything from citizen services to national security, with successful agencies building ecosystems designed for adaptability and mission-driven AI deployment from inception.

LEADERSHIP

What Organizations that Excel at Strategic Foresight Do Differently. Organizations that excel at strategic foresight are able to systematically track both predictable future events and true unknowns across short- and long-term horizons. Based on a survey of 500 organizations, firms with more advanced foresight capabilities report a meaningful performance edge, driven by data-forward methods, continuous signal detection, and an explicit focus on potential upsides to risks—not just downsides. The path to foresight leadership, the article argues, lies in building foresight as an organizational capability embedded in strategy, not a set of one-off exercises.

The Best Leaders Are Great Followers. In an era of complexity, specialization, and rapid change, the most effective leaders are those who exhibit the same attributes as exemplary followers. They excel at listening, learning, and adapting rather than commanding from the top. Leadership and followership are co-created, fluid roles, not heroic acts of command. Organizations can develop stronger leaders by cultivating five followership capabilities: active listening, prioritizing purpose over personal credit, reliable execution, critical dissent, and coachability. These skills mobilize collective intelligence, reduce blind spots, build trust, and make others genuinely want to follow.

How Leaders Can Build Stakeholder Trust in Uncertain Times. Geopolitical fragmentation, economic volatility, technological advances and more have led to unprecedented levels of uncertainty. While you won’t be able to eliminate uncertainty, you can blunt or lessen it by employing three trust-building strategies: 1) Become a source of predictability; 2) Become a source of certitude; or 3) Become a source of stability. A trust-building orientation during times of uncertainty not only helps corporations achieve better outcomes during the period of uncertainty, it allows them to slingshot out of the bad times poised to take full advantage of the recovery.

What Leaders Get Wrong About Strategic Alignment.  Getting everyone in an organization working toward the same goal is crucial for success. When teams aren’t on the same page, problems like poor teamwork, slow changes, missed targets, and lack of trust pop up. But leaders often overlook alignment because it’s not clear who’s in charge of it, it doesn’t get enough attention, and people focus too much on day-to-day tasks instead of the big picture. To fix this, leaders need to make sure alignment is always a priority. They should look at how each part of the organization connects to its main purpose, make choices that fit their unique situation instead of copying others, and encourage everyone to think about the whole organization, not just their own area. Keeping everyone aligned takes ongoing effort and teamwork, but it leads to better results.

GOVERNMENT OPERATIONS

IRS Seeks New Software Vendor for Volunteer Tax Preparation Programs. IRS initiated procurement for tax assistance software supporting volunteer tax preparation programs serving low-income taxpayers. The acquisition aims to modernize technology supporting VITA and TCE programs.

GSA Fully Implements Transactional Data Reporting Across MAS. General Services Administration completed Multiple Award Schedule transactional data reporting rollout. Full implementation provides enhanced visibility into federal procurement patterns and spending.

DEFENSE & NATIONAL SECURITY

NSA Unveils Zero Trust Implementation Guidance. NSA published the first two Zero Trust Implementation Guidelines to help practitioners implement zero trust frameworks aligned with DoD's strategy for full implementation by fiscal year 2027. Defense agencies must meet 91 activities for "target level" zero trust and 152 for "advanced" implementation. The initial Primer and Discovery Phase documents cover target-level requirements. NSA plans additional Phase One and Two documents, with potential Phase Three and Four addressing advanced-level implementation. The Discovery Phase helps organizations establish foundational visibility of critical data, applications, assets, and access patterns within their architecture.

Pentagon Unveils AI Acceleration Strategy Amid Budget Scrutiny. DoD released AI acceleration strategy as budget experts question proposed $1.5 trillion defense budget. The Pentagon made first Replicator 2 counter-drone acquisition and awarded Space Force missile capability task orders. Defense leadership balances AI priorities against workforce challenges after losing experienced contracting officers through separation programs. The administration advanced AI chip export policies, securing 25% profit share on advanced chips while Commerce tweaked China export reviews affecting Nvidia and AMD. Congressional witnesses urged caution against AI chip sales to China, highlighting tensions between technology advancement, economic interests, and national security.

AI GOVERNANCE

2026 Federal Tech Agenda: Beyond AI to Foundational Capabilities. Industry leaders predict 2026 will pivot from AI enthusiasm to foundational capabilities including data security, talent retention, and acquisition governance. Melvin Brown identifies personnel and budget cuts as greatest modernization challenge, though believing agencies approach rebuilding phase. Nancy Sieger highlights intensified IT talent exodus driven by DOGE-mandated reductions and return-to-office requirements, noting disproportionate loss of mid-career technologists who bridge legacy systems with modern capabilities. Agencies increasingly depend on contractor support, raising questions about long-term government technology capacity. Zero trust implementation focuses on data layer requirements prioritizing tagging, attribute-based access, encryption, and auditability. Jonathan Alboum questions whether customer experience gains can be sustained amid staffing reductions.

PROFESSIONAL SERVICES & CONTRACTING

Government Contractors Anticipate Shift from Disruption to Execution. Professional Services Council CEO Jim Carroll characterizes 2025 as year of traumatic disruption from record-breaking shutdown and DOGE fallout, yet notes member companies demonstrated mission dedication throughout. Looking toward 2026, Carroll expresses optimism about renewed procurement momentum as administration officials receive Senate confirmations after year-long delays. Defense sector focuses on cost containment, with Carroll drawing residential construction analogy to explain procurement process modification costs. Industry emphasizes streamlined processes focused on deliverables rather than administrative issues. Carroll views January 30 continuing resolution deadline with less concern than fall shutdown, believing both parties learned neither side wins such confrontations.

CONGRESSIONAL APPROPRIATIONS & FISCAL GOVERNANCE

Shrinking federal office space, more agencies spared from major cuts: Highlights from latest spending bills. Congressional appropriators are pursuing less aggressive budget cuts for the IRS than proposed by the Trump administration, while renewing efforts to reduce federal office space. The fiscal 2026 spending package includes an $11.2 billion IRS budget—a $1.1 billion cut from current levels—but far less severe than the administration's proposed 20% reduction. Lawmakers also directed agencies to leverage AI tools to accelerate public-facing services. The IRS would receive $3 billion for taxpayer services (a $256 million increase) but its enforcement budget would shrink to $5 billion (a $439 million cut).

Senate passes more spending bills, but Homeland Security dispute looms. The Senate passed a three-bill spending package by an 82-15 vote, bringing Congress halfway through its appropriations work. Six of 12 annual spending bills have now passed both chambers before the January 30 deadline. Lawmakers have provided full-year funding for Agriculture, Commerce, Energy, Interior, and Justice Departments. The most challenging negotiations around Department of Homeland Security funding remain ahead amid soaring tensions following the shooting of a Minnesota woman by an ICE agent.

APPOINTMENTS

Trump Administration Advances Key Technology and Security Nominations. President Trump renominated Sean Plankey as CISA director after failed Senate confirmation, facing hold from Senator Rosen over Coast Guard policy concerns. The Pentagon named Cameron Stanley as AI chief and Timothy Kosiba as NSA deputy director. The Senate confirmed Edward Forst as GSA Administrator, Kirsten Davies as Pentagon CIO, and Alexander Klein as first U.S. CTO since 2021. Trump nominated Lt. Gen. Joshua Rudd for NSA-CYBERCOM dual-hat role, with Rudd vowing to review the organizational tie between agencies.

THIS WEEK @ THE CENTER 

RECENT BLOGS

• Reflections on Public Service: The Lasting Legacy of Gene Dodaro by Michael J. Keegan. Gene Dodaro joined Michael J. Keegan on The Business of Government Hour for a final, reflective conversation on public service. This essay highlights his extraordinary career spent strengthening government performance, elevating public accountability, and building the foundation for a more resilient federal enterprise.
• NEW SPECIAL REPORT: Five Pillars of Effective Government: A Framework for Governing in an Age of Complexity by Dan Chenok Margie Graves Michael J. Keegan. We are pleased to announce the release of a groundbreaking special report, Five Pillars of Effective Government, which continues advancing our work by identifying five areas where meaningful progress can have the greatest impact—areas where the right ideas, the right tools, and the right leadership can strengthen the capacity of government to serve the nation.
• Why Emergency Management Requires Trust by Dan Chenok. In a recent emergency management event, panelists reflected on the key enablers of effective responses to global shocks. Blog authors: Fatima Akhtar, Associate Partner, IBM and Jordan Klavans, Managing Consultant, IBM

ICYMI – This week Michael J. Keegan welcomes Gene Dodaro, former Comptroller General of the U.S. and leader of the Government Accountability Office (GAO) to reflect on his tenure at GAO, his accomplishments, innovations, and advice for his successor.