Innovation in Government: 2025 Year in Review

As we move into 2026, federal leaders are operating in a period shaped by important policy priorities, continued technological advancement, and growing expectations for modernization. This past year brought a renewed focus on speed, efficiency, and mission impact - accelerating efforts to streamline operations, strengthen partnerships, and reduce administrative burden across agencies.

Across government, 2025 was a defining year for modernization. Rising cyber threats, global volatility, and growing demand for digital services accelerated secure cloud adoption, zero trust implementation, and enterprise data modernization. Early discussions around FAR 2.0 underscore the need for acquisition to move faster, reduce friction, and better enable commercial innovation. Civilian and defense agencies are reassessing pathways for buying and scaling technology, prioritizing commercial solutions, flexible approaches, and authorities that support rapid acquisition.

Agencies are rapidly moving from experimentation and into full-scale deployment of AI solutions designed to transform how government operates. From automating complex workflows to powering real-time analytics and mission-driven decision support, AI is becoming central to how agencies deliver results. Leaders are pushing for systems that deliver measurable gains in speed, accuracy, and service delivery - while ensuring these capabilities are deployed responsibly and securely. As adoption accelerates, AI is shifting from a promising tool to an essential driver of the government’s future.

Citizen expectations for seamless, digital-first experiences continued to grow. Agencies responded with modernized portals, stronger identity verification, and progress toward shared data frameworks, setting a higher bar for service delivery.

Against this backdrop, Nextgov/FCW and Carahsoft are proud to present the latest edition of the Innovation in Government® series. This compendium offers expert insights and practical strategies to help leaders navigate policy shifts, harness emerging technologies, and advance mission outcomes in a year of continued change.