House bill supporting local government modernization introduced

Key Takeaways

On May 20, Rep. Valerie Foushee (D-N.C.) introduced in the U.S. House of Representatives the State and Local Public Sector Innovation Act (H.R. 8926), a bill that would create a new federal grant program to help state and local governments modernize their technology infrastructure, strengthen cybersecurity systems and train staff. The legislation comes amid a growing recognition that many counties are facing rising costs for new IT equipment as aging legacy technology systems must be retired and the demand for modernized local services continues to increase.

Counties support and fund local modernization efforts through local sources of revenue, but a federal program geared to flexibly meet needs at the local level would provide much needed support to accelerate the transition to modernized and secure services at the county level.

What’s in the bill?

The State and Local Public Sector Innovation Act would establish a federal grant program administered through the U.S. Department of Commerce that would provide funding to state technology departments for modernization efforts – and require within a defined period a pass-through of not less than 70 percent of funding and support directly to local governments. 

The bill’s funding structure allows all counties to benefit from the program through a variety of eligible use areas directed towards local governments, including: the purchasing or upgrading technology and related infrastructure; the strengthening of cybersecurity systems; the hiring of staff to support modernization efforts; transitioning technology to meet standards for post-quantum cryptography; and more.

What’s next?

The State and Local Public Sector Innovation Act has been introduced in the House and referred to the U.S. House Energy and Commerce Committee. NACo has expressed support for the bill and urges counties to engage their congressional delegations to share how technology modernization cost challenges affect service delivery in their communities.