Weekly Roundup - March 23-27

The week ending March 27, 2026, brought a convergence of consequential developments spanning quantum strategy, AI infrastructure, defense modernization, and the impact of workforce disruption. On the technology front, a GAO report put the National Quantum Initiative's strategic gaps into sharp relief just as the Senate prepared for a reauthorization markup and President Trump's appointment of 13 technology titans to PCAST sent a clear signal about where the administration intends to anchor its emerging technology agenda. NSF's AI-Ready America initiative and the DOE-Commerce energy infrastructure partnership underscored the scale of the federal commitment to the AI build-out. The juxtaposition of bold technology ambition and workforce fragility defines this moment in federal management.

ARTIFICIAL INTELLIGENCE, QUANTUM & EMERGING TECHNOLOGY

Lawmakers Eye Quantum Strategy Fixes as GAO Flags Strategic Gaps. A new GAO report warns the National Quantum Initiative Act needs significant updates before the Senate Committee on Commerce, Science, and Transportation takes up reauthorization — citing gaps in performance metrics, budget planning, agency coordination, and workforce strategy. The Quantum Industry Coalition urged swift action, warning that delay risks ceding ground to China and missing the window for a floor vote before the next Congress.

Trump Names Tech Executives to PCAST to Shape Federal Tech, Science Policy. President Trump appointed 13 technology leaders — including executives from AMD, Dell, Google, Meta, NVIDIA, and Oracle — to the rechartered President's Council of Advisors on Science and Technology (PCAST). The council will advise the administration on AI, digital assets, and emerging technologies, with a mandate to ensure U.S. leadership in what the White House is calling the Golden Age of Innovation.

NSF Launches AI-Ready America Initiative With Nationwide Hub Funding. The National Science Foundation announced a new multi-agency initiative to expand AI readiness across every U.S. state and territory through a network of AI-focused research and education hubs — a sweeping investment in the domestic talent pipeline and regional AI capacity at a time when federal agencies are simultaneously pulling back on agency workforce.

DOE, Commerce Launch Public-Private Partnership for AI Data Center Energy Buildout. The Departments of Energy and Commerce teamed with SoftBank and electric utility AEP Ohio to develop energy infrastructure for AI data centers in southern Ohio — one of the clearest signals yet that the federal government views AI infrastructure as a national priority requiring active public-private coordination, not just private investment.

Rep. Pfluger Warns of AI Threat, Seeks GAO Probe. Rep. August Pfluger, a leading voice on homeland security, called on GAO to examine the use of AI by violent extremists and other illicit actors, calling it 'a broad and evolving national security threat.' The request reflects growing bipartisan concern that the same tools powering federal AI modernization are also being exploited by adversaries.

AI Boosts Efficiency for Agencies, but Trust and Safety Lead the Way. At a Federal News Network event, State Department and Labor Department officials detailed how they are deploying AI today — with State rolling out its internal StateChat tool and Labor managing more than 30 active AI use cases. Both emphasized that successful adoption hinges on workforce trust, people-first implementation, and governance guardrails, particularly as agencies move toward agentic AI that can take autonomous action.

TECHNOLOGY MODERNIZATION, DEFENSE & INNOVATION

DOD CIO Says JWCC Next Will Improve Cloud Oversight. Pentagon CIO Kirsten Davies outlined plans for JWCC Next — the follow-on to the Joint Warfighting Cloud Capability contract — promising improved financial oversight and greater transparency on defense cloud spending. The announcement reflects a broader push at DoD to bring discipline and accountability to a cloud portfolio that has grown rapidly in scale and cost.

Army Launches Online Marketplace for Drones. The U.S. Army unveiled a new online procurement marketplace for unmanned aircraft systems, designed to accelerate the acquisition of drone capabilities and adapt to a commercial market that evolves faster than traditional defense procurement timelines. The marketplace represents a deliberate shift toward commercial-speed buying models in a technology domain that has become central to modern warfighting.

New Space Force Squadrons Defend Against Cyber Threats. Space Systems Command activated two new Defensive Cyber Operations Squadrons to protect Space Force launch ranges from cyber intrusions during launch operations — an important organizational step as the U.S. increasingly recognizes that space assets require the same sustained cyber defense posture as any other critical infrastructure.

Strategic Alliance Aims to Accelerate Federally Funded R&D Into Real-World Tech. The Federal Laboratory Consortium announced a three-year strategic partnership with FedTech to strengthen the pipeline from federal lab discoveries to commercial marketplace applications — addressing one of the persistent gaps in the federal innovation ecosystem where breakthrough research too often stalls before reaching real-world deployment.

Jewell Sworn in as Defense S&T Assistant Secretary. Joseph Jewell was officially sworn in as the Pentagon's new Assistant Secretary of Defense for Science and Technology — filling a critical leadership post responsible for shaping the department's research investments, emerging technology strategy, and long-range innovation agenda at a pivotal moment for defense modernization.

AGENCY MANAGEMENT & OVERSIGHT

GAO: IRS Lacking Workforce, Planning for AI Ambitions. A new GAO report found that the IRS lacks both the skilled employees needed to build and deploy AI tools and a coherent workforce plan to address that deficit — a finding with particular bite given the agency's ambitious AI modernization agenda and the mass departures of the past year. The report underscores a recurring tension between the administration's push for AI-driven efficiency and the workforce reality it has helped create.

House Panel Weighs VA Software Oversight, Data Privacy Bills. The House Veterans' Affairs Subcommittee on Oversight and Investigations examined software waste and data privacy risks at VA, considering two bills to tighten oversight of IT assets and contractor data practices — bringing renewed legislative scrutiny to an agency that has repeatedly struggled with cost overruns, software duplication, and data governance challenges.

House Bill Targets VA EHRM Program With Performance Benchmarks, Exit Option. Rep. Nikki Budzinski introduced legislation that would require VA to hit measurable performance benchmarks in its Electronic Health Record Modernization program or exit its contract with Oracle Cerner altogether — signaling congressional impatience with a program whose lifecycle cost has now grown to approximately $37 billion and whose deployment record has been persistently troubled.

CISA Loses Workers as DHS Shutdown Drags On, Acting Director Says. Acting CISA Director Nick Andersen told Congress that the agency is losing employees as the DHS funding lapse continues — a development that carries serious implications for the nation's cyber defense posture. The testimony amplifies concern that workforce instability at CISA, combined with a prolonged shutdown, is degrading the very institutional capacity the agency just weeks ago declared it was moving to operationalize.

IRS Direct File Cost $45 Million Less Than Expected, Watchdog Says. A federal watchdog found that the IRS Direct File program — canceled in part due to cost concerns — actually came in $45 million under projected spending, raising new questions about the data behind the administration's decision to discontinue the free tax filing service and reopening broader debates about cost, efficiency, and the role of government in digital service delivery.

FEDERAL WORKFORCE & LEADERSHIP

CHCO Guide 2026: Federal Employee Engagement Slowly Rebounding, Gallup Research Finds. A Gallup survey presented at Federal News Network's Federal Leaders Guide to the CHCO offers a more nuanced picture: while federal employee engagement remains far below historical norms, there are modest early signs of stabilization as employees either adapt or self-select out. Notably, about 21 percent of federal employees are now using AI at least a few times per week — slightly below the 25 percent in the private sector — suggesting that even amid upheaval, AI adoption inside government continues its gradual advance.

Now Is the Time for Courage. Research has shown that fortune favors the bold, not the cautious. But in volatile and uncertain times, many leaders hesitate to act, and others simply freeze up. The question is, Can bravery be acquired? In this article an HBS professor who has done extensive research on the subject argues that everyone can—and should—learn to be courageous. The author uncovered five specific strategies used by people who demonstrate bravery: (1) They create positive narratives that guide them through chaos, often recasting their work as a moral quest. (2) They build their confidence through training and preparation, by expanding their arsenal of mental tools, and by focusing on what they can control. (3) They size up complex and ambiguous situations step-by-step, adjusting course as their understanding grows. (4) They enlist the help of allies, mentors, and critics. And finally, (5) they help themselves stay calm by practicing self-care, embracing rituals, and reframing situations more positively.

The Most Successful Leaders Never Stop Learning. David Novak wanted to help others become better leaders. He believes the key is to put learning at the center of everything you do, whether you’re an entry-level worker or a C-suite executive. Novak outlines three main areas for learning and offers ideas on how the most effective leaders turn their learnings into action, something that takes insight and practice. Novak wrote the book How Leaders Learn: Master the Habits of the World’s Most Successful People.

How Senior Leaders Can Build Their Influence. You propose a strategic shift. The case is solid, the logic sound. But weeks later, nothing moves. You advocate for a technology investment and get polite nods, then silence. You’re in the upper ranks of your organization with a track record of good judgment, but you can’t get people to act. The problem isn’t always your idea. It’s that getting traction at this level requires more than a strong argument. Here’s how to build your influence and get buy-in from stakeholders.

Strategy Summit 2026: Inventive Strategy and the ‘Unbossed’ Organization.  As AI takes hold of the business world, is long-term competitive advantage a thing of the past? In this four-part special series, we’ll share conversations from the recent HBR Strategy Summit to help you get ahead. In this episode, Columbia Business School professor Rita McGrath explains how she thinks companies must adapt when they can no longer depend on their competitive advantage lasting. She explains the most important strategic decision an organization can make today, and what it looks like to run an “unbossed” organization. HBR editor in chief Amy Bernstein contributes audience questions.

THIS WEEK @ THE CENTER 

RECENT BLOGS

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• The Human Side of Innovation: Insights from Genius at Scale by Michael J. Keegan. In his latest essay—based on my conversation with Jason Wild, co-author of Genius at Scale with Linda Hill and Emily Tedards—Michael explores a simple but often overlooked truth. Innovation isn’t a technology problem. It’s a people problem. For leaders navigating AI, cross-agency collaboration, and workforce transformation, this isn’t theoretical. It’s operational.

ICYMI – This week Michael J. Keegan welcomed Jason Wild to discuss his latest book Genius at Scale: How Great Leaders Drive Innovation at Scale co-authored with Linda Hill and Emily Tedards and explore how great leaders drive innovation at scale, the ABCs of leading innovation, how government executives navigate AI governance, interagency modernization, and cross-sector partnerships.