Nearly half of U.S. states received top recognition in the 2026 Center for Digital Government (CDG) Digital States Survey, reflecting continued investment in digital services, AI and government modernization as states contend with cybersecurity threats, workforce challenges and budget constraints.
The CDG, a national benchmarking and advisory institute focused on technology policy and best practices in state and local government, is a trusted brand of e.Republic, a company that provides media, research and events focused on state and local government and education. The Digital States Survey evaluates how states have been using technology to improve services, operations, efficiency and collaboration over the past two years.
The survey awarded 11 states an A:
- Connecticut
- Georgia
- Hawaii
- Iowa
- Michigan
- Mississippi
- Missouri
- Nevada
- Ohio
- Texas
- Utah
Another 13 states received an A-, while 11 states improved their standing from 2024. Iowa, Nevada, Florida and Idaho recorded the most significant gains.
The survey found cybersecurity continues to be a top priority for states navigating the rapidly evolving AI landscape. The role of the state chief information officer is also becoming more complex, with 95 cof technology leaders reporting funding constraints and 78 percent citing enterprise governance and agency alignment challenges.
Leaders in 84 percent of states cited a need for more cybersecurity staff. The survey also found workforce needs in areas including AI modeling, application building, integration and modernization, data analytics and business intelligence, and cloud architecture.
IT collaboration and shared services rank second on state priorities for the next 12 to 18 months. The CDG’s previous biennial survey found 28 percent of states put 6 percent to 10 percent of IT budgets toward cybersecurity. The most recent survey saw that number jump to 43 percent, with another 23 percent of states devoting more than 10 percent of IT budgets to cybersecurity.
AI and machine learning, including pilots, rank third among state priorities, followed by budget and cost control, constituent experience, IT workforce, application modernization, data governance and cloud computing.
The CDG’s survey found AI is more prevalent than ever, with 80 percent of state technology leaders reporting integration across technology, data, security and policy leadership.
Nearly 80 percent are considering or already using AI security platforms. Massachusetts took first place in the AI category, while Utah and Vermont received outstanding achievement recognition.
Some states were awarded for their efforts within specific government functions, including:
- Transportation and motor vehicles: Maryland
- Public safety/emergency management/criminal justice/corrections: Kentucky
- Health and human services: New Jersey
- Enterprise computing and broadband expansion: Alabama
- Data management: Montana
- Constituent digital experience: Georgia
The survey goes beyond showcasing which states are making progress in government modernization by outlining the priorities likely to shape state IT spending in the coming years. Cybersecurity remains at the top of the list, but AI, shared services, data governance and workforce needs are increasingly connected to how states modernize their operations and deliver services.
Photo by Maik Poblocki from Pexels
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