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DoD/News
Pentagon Updates Financial Reporting Structure to Secure a Clean Audit by 2028
by Elodie Collins
Published on March 25, 2026
Michael Powers, deputy under secretary of war comptroller. Powers talked about the Pentagon's new strategy for a clean audit.

The Department of War has introduced a refined strategy to achieve a clean audit opinion by fiscal year 2028. In a joint memo published Tuesday, the Office of the Under Secretary of War (Comptroller) and the Office of Inspector General outlined upcoming changes to the department’s financial reporting structure and audit approach to ensure audit readiness.

The effort builds on prior commitments from department leadership to meet annual milestones and deliver a clean audit by 2028 or sooner.

Table of Contents

  • How Is the Pentagon Refining Its Audit Strategy?
  • What Role Will the Inspector General Play in the Audit Process?

How Is the Pentagon Refining Its Audit Strategy?

The department is revising its financial reporting framework to streamline the audit process, initially focusing on securing a clean audit opinion for its fiscal year 2027 Working Capital Fund financial statements, according to Michael Powers, who was appointed deputy under secretary of war (comptroller) in December.

Powers said the initial objective “will lay the foundation for a clean audit opinion on the FY28 agency-wide financial statements and demonstrate the Department’s accountability to the American people and Congress in responsibly managing the funds entrusted to us.”

Jules Hurst III, performing the duties of under secretary of war (comptroller), described the initiative as a “historic step forward” in the department’s audit journey.

“This strong partnership between the Inspector General and the Comptroller underscores our unified commitment to building a culture of accountability and trust, ensuring the Department meets the highest standards of transparency and integrity,” Hurst added.

What Role Will the Inspector General Play in the Audit Process?

Under the revised framework, the Office of Inspector General will engage an independent public accounting firm to audit the agency-wide financial statements and the consolidated Defense Working Capital Fund.

Platte Moring III, inspector general at the Pentagon, said the approach preserves the IG’s independence while ensuring compliance with statutory and professional standards.

Officials emphasized that close coordination between the comptroller’s office and the IG will be critical to sustaining momentum, improving audit outcomes and advancing a culture of transparency across the DOW.

Acquisition & Procurement/DoD/Government Technology/News
Army Seeks to Transform Drone Acquisition With Online Marketplace
by Jane Edwards
Published on March 25, 2026
U.S. Army logo. The Army launched the UAS Marketplace to expedite the drone acquisition process.

The U.S. Army has launched an online platform designed to accelerate the acquisition and delivery of unmanned aircraft systems to soldiers.

Army Seeks to Transform Drone Acquisition With Online Marketplace

As the Army rolls out initiatives like the UAS Marketplace to modernize how it delivers capability to warfighters, conversations across the GovCon community continue to evolve. Attend the 2026 Army Summit to join military leaders and industry executives for discussions on the latest Army innovation, acquisition initiatives and key service priorities. Save your seat now!

Table of Contents

  • What Is the Army UAS Marketplace?
  • What Did Army Leaders Say About the UAS Marketplace?
  • How Does the UAS Marketplace Align With Other Army Efforts?

What Is the Army UAS Marketplace?

The Army said Tuesday the UAS Marketplace is a digital storefront for procuring drone technology. The platform is built to enable Army units, government partners and allied countries to access vetted UAS platforms through a centralized system.

The service collaborated with Amazon Web Services and the Army Enterprise Cloud Management Agency to develop the marketplace, which provides tools for users to compare system functionalities, place orders and submit feedback.

The Army is showcasing the UAS Marketplace at the Association of the United States Army Global Force Symposium and Exposition through Thursday, March 26, in Huntsville, Alabama. The service will also host a Marketplace Showcase on April 14 ahead of the Army Aviation Association of America’s Warfighting Summit.

What Did Army Leaders Say About the UAS Marketplace?

Brent Ingraham, the Army acquisition executive, said the marketplace reflects efforts to make acquisition processes more agile, competitive and effective while expanding engagement with industry partners.

“By lowering barriers to entry and partnering with a wider range of industrial innovators, we are building a more resilient and responsive defense industrial base, which is essential for equipping our force and deterring our adversaries,” Ingraham added.

Maj. Gen. Clair Gill, the portfolio acquisition executive, or PAE, for maneuver air, said the platform demonstrates the PAE construct’s ability to deliver capability faster and represents a shift in acquisition approach tied to Army aviation modernization.

Rodney Davis, the service’s capabilities program executive for aviation, said the marketplace responds to evolving operational needs by enabling the delivery of advanced aerial capabilities to Army formations.

Col. Danielle Medaglia, the Army’s project manager for UAS, said the initiative supports faster delivery of technologies to warfighters by promoting competition and innovation.

How Does the UAS Marketplace Align With Other Army Efforts?

The Army issued a commercial solutions opening tied to the marketplace to solicit UAS platforms, payloads, autonomy and command-and-control software from industry.

Meanwhile, the Army-led Joint Interagency Task Force 401 recently achieved initial operational capability for its digital counter-UAS marketplace and signed an agreement with Perennial Autonomy to facilitate the delivery of the latter’s Bumblebee V2 kinetic counter-drone system to U.S. forces.

Artificial Intelligence/Digital Modernization/News
GAO Report Reveals Gaps in IRS AI Workforce Planning, Inventory Management
by Elodie Collins
Published on March 25, 2026
Internal Revenue Service logo. GAO said the IRS' staffing reductions have led to shortage in skilled workers.

The Government Accountability Office has warned that staffing reductions at the Internal Revenue Service have led to a shortage of skilled personnel capable of developing and supporting artificial intelligence tools. In a report published Tuesday, the congressional watchdog also found that the IRS does not maintain a complete inventory of AI applications.

GAO Report Reveals Gaps in IRS AI Workforce Planning, Inventory Management

The IRS is among the agencies implementing AI to support federal operations. Join government leaders and industry technology providers at the Potomac Officers Club’s 2026 Digital Transformation Summit on April 22. The event will host multiple panels on AI deployments across government. Sign up today to secure your spot. 

Table of Contents

  • Why Are Staffing Reductions at the IRS Causing AI Risks?
  • What Issues Did GAO Identify in IRS’ AI Inventory?
  • What Steps Did GAO Recommend for IRS to Address Its AI-Related Deficiencies?

Why Are Staffing Reductions at the IRS Causing AI Risks?

According to GAO, workforce cuts in 2025 significantly reduced the number of employees supporting AI initiatives. Officials from the tax agency disclosed that dozens of personnel working on AI were affected by the staffing reductions throughout the past year.

A recent report from Yahoo Finance revealed that the IRS has 27 percent fewer employees in 2026 than in 2025, with the agency’s IT department losing 25 percent of its workforce.

While the IRS has plans to expand AI use cases, it has not identified the skills needed to support these efforts or developed a workforce plan, raising concerns that staffing reductions and the lack of strategy could hinder future AI initiatives, the government watchdog said.

What Issues Did GAO Identify in IRS’ AI Inventory?

GAO also discovered gaps in the IRS’ AI inventory, which included 126 active use cases as of June 2025 but did not fully capture how AI is being used across the agency. More than 25 percent of the agency’s listed use cases lacked information on expected benefits, limiting visibility into their value, the report cautioned.

The watchdog also identified omissions in the use cases. For instance, AI-enabled tools used to support criminal investigations were not included in the inventory. In addition, the IRS lacks a centralized process to manage AI investments across the agency or ensure alignment with broader strategic goals.

What Steps Did GAO Recommend for IRS to Address Its AI-Related Deficiencies?

GAO made several recommendations to help the IRS strengthen its AI capabilities and governance, including developing a comprehensive plan to address its workforce skills gap and implementing a quality assurance process to improve the accuracy and completeness of the agency’s AI inventory.

The watchdog also urged the IRS to improve internal communication to ensure all AI use cases are properly documented.

The IRS agreed with all recommendations, noting that efforts are underway to address the issues identified in the report.

News/Space
NASA Announces Initiatives to Advance National Space Policy
by Jane Edwards
Published on March 25, 2026
Jared Isaacman. The NASA administrator discussed lunar missions and other efforts to advance Trump’s National Space Policy.

NASA has announced agencywide initiatives aimed at advancing the Trump administration’s National Space Policy and strengthening U.S. leadership in space.

NASA Announces Initiatives to Advance National Space Policy

The agency’s latest initiatives underscore the accelerating priorities shaping U.S. leadership in space, from lunar missions to commercial low Earth orbit and advanced propulsion. These developments come as government and industry leaders prepare to gather at the 2026 Air and Space Summit in the summer. Book your spot now to join the discussion.

NASA said Tuesday the initiatives, unveiled during the agency’s “Ignition” event, focus on accelerating lunar exploration, transitioning low Earth orbit operations to commercial platforms, expanding science missions and advancing nuclear propulsion capabilities.

NASA Administrator Jared Isaacman said the agency will prioritize returning astronauts to the moon before the end of Trump’s term and establishing a sustained human presence on the lunar surface. He emphasized aligning agency resources, workforce and industry partnerships to meet accelerated timelines.

“If we concentrate NASA’s extraordinary resources on the objectives of the National Space Policy, clear away needless obstacles that impede progress, and unleash the workforce and industrial might of our nation and partners, then returning to the Moon and building a base will seem pale in comparison to what we will be capable of accomplishing in the years ahead,” added Isaacman, a 2026 Wash100 awardee.

Table of Contents

  • What Changes Is NASA Making to the Artemis Program?
  • What Are the 3 Phases of Lunar Base Development?
  • What Is NASA’s LEO Strategy?
  • What Are the Upcoming Space Science Missions?
  • What Is Space Reactor-1 Freedom?

What Changes Is NASA Making to the Artemis Program?

NASA said it will continue updates to the Artemis program, including standardizing the Space Launch System rocket and adding a mission in 2027. Artemis III will test integrated systems in Earth orbit ahead of a planned lunar landing under Artemis IV.

The agency plans annual lunar landings and aims to increase frequency using commercially procured, reusable systems, targeting crewed missions every six months. NASA also said it will shift focus from the current Gateway configuration to surface infrastructure while repurposing existing hardware and leveraging international partnerships.

What Are the 3 Phases of Lunar Base Development?

NASA outlined a three-phase plan to establish a sustained lunar presence. In the first phase, “Build, Test, Learn,” the agency will expand Commercial Lunar Payload Services missions and the Lunar Terrain Vehicle program to deliver rovers, instruments and technology demonstrations supporting mobility, power, communications and science.

The second phase, “Establish Early Infrastructure,” will introduce semi-habitable systems and recurring logistics to support regular astronaut operations. This phase will incorporate international contributions, including Japan’s pressurized rover and additional partner payloads and infrastructure.

In the third phase, “Enable Long-Duration Human Presence,” NASA will deploy cargo-capable human landing systems to deliver larger infrastructure for a continuous human presence. Planned contributions include habitats from the Italian Space Agency and a lunar utility vehicle from the Canadian Space Agency.

What Is NASA’s LEO Strategy?

NASA said it will maintain its commitment to low Earth orbit while transitioning from the International Space Station to commercial platforms. The agency plans a phased approach that avoids gaps in U.S. human spaceflight capabilities and supports development of a commercial ecosystem.

Under the strategy, NASA would procure a government-owned core module attached to the space station, followed by commercial modules that would later detach into free-flying stations. The agency also plans to expand industry opportunities, including private astronaut missions and competitive awards. The space agency said an industry request for information will open Wednesday, March 25, to gather feedback and inform financing, partnership structures and risk mitigation.

What Are the Upcoming Space Science Missions?

NASA highlighted several upcoming science missions, including the Nancy Grace Roman Space Telescope, which could launch as early as this fall to study dark energy. The Dragonfly mission is scheduled to launch in 2028 and arrive at Saturn’s moon Titan in 2034.

The agency also plans to launch and deliver the European Space Agency’s Rosalind Franklin rover to Mars in 2028, along with a new Earth science mission designed to improve extreme weather prediction.

NASA said it will expand lunar science efforts through an increased cadence of robotic landings beginning in 2027, supporting payloads from industry, academia and international partners, including missions such as VIPER and LuSEE-Night.

What Is Space Reactor-1 Freedom?

The agency will launch Space Reactor-1 Freedom, a nuclear-powered interplanetary spacecraft, to Mars before the end of 2028. The mission will demonstrate nuclear electric propulsion for deep space operations.

The spacecraft will deploy a payload of helicopter systems at Mars and establish flight heritage for nuclear systems. NASA said the program will support future missions requiring high-power propulsion beyond the capabilities of solar energy.

Cybersecurity/News/Space
NSA, Partners Warn of Expanding Cyber Risks in LEO Satellite Networks
by Kristen Smith
Published on March 25, 2026
LEO constellation. NSA and allied agencies released guidance on cybersecurity risks in LEO satellite systems.

The National Security Agency and international partners are warning that the rapid expansion of low Earth orbit satellite communications systems is increasing cyber risk exposure, as distributed architectures and radio frequency links create new vulnerabilities to jamming, spoofing and interception.

NSA, Partners Warn of Expanding Cyber Risks in LEO Satellite Networks

The Potomac Officers Club’s 2026 Cyber Summit will bring together government and industry leaders to discuss evolving cyberthreats and strategies to strengthen federal cybersecurity. Registration is now open.

In a cybersecurity information sheet the NSA released Tuesday, the agency — alongside Australian cyber and space authorities and other allied partners — outlines mitigation strategies to secure LEO satcom systems across their full operational architecture.

Table of Contents

  • What Risks Do LEO SATCOM Systems Face?
  • What Mitigation Strategies Are Recommended?
  • How Is LEO Adoption Increasing System Complexity?

What Risks Do LEO SATCOM Systems Face?

The report, titled “Securing space: Cyber security for low earth orbit satellite communications,”  highlights how LEO systems — designed to improve connectivity and resilience — introduce a broader attack surface spanning satellites, ground infrastructure, user devices and supply chains.

Unlike traditional networks, LEO constellations operate in highly distributed environments with limited physical access to space-based assets, increasing reliance on remote management and wireless communication links.

These characteristics make systems particularly susceptible to signal interference, data interception and exploitation of weak points across interconnected segments.

What Mitigation Strategies Are Recommended?

The guidance outlines segment-specific security measures to reduce risk and strengthen resilience.

For satellites, agencies recommend techniques such as frequency-hopping signals, anti-jam capabilities and redundant communication paths to maintain operational continuity.

Ground systems should implement continuous monitoring and anomaly detection, while user devices and applications require stronger endpoint protection and secure access controls.

How Is LEO Adoption Increasing System Complexity?

The agencies note that the scale and architecture of LEO constellations introduce operational complexities beyond those of traditional satellite systems.

Large numbers of interconnected satellites and ground nodes require continuous coordination, making it more difficult to maintain visibility, enforce consistent security controls and manage configurations across the network.

The report also highlights risks tied to supply chain dependencies and the use of commercial components, which can introduce vulnerabilities if not properly vetted and secured.

Contract Awards/DoD/Government Technology/News
AeroVironment Lands Army Contract for P550 Long-Range Reconnaissance UAS
by Miles Jamison
Published on March 24, 2026
AeroVironment logo. AV secured a contract from the U.S. Army to produce P550 LRR UAS.

AeroVironment has received a contract from the U.S. Army Capability Program Executive for Aviation’s Uncrewed Aircraft Systems Project Office for the production of AV P550 long-range reconnaissance, or LRR, systems.

AeroVironment Lands Army Contract for P550 Long-Range Reconnaissance UAS

The Potomac Officers Club’s 2026 Army Summit on June 18 examines how the Army’s Transformation Initiative is reshaping modernization, contracting and resource strategies to support its 2030 goals, including building a unified network. Register today to gain valuable insights and connect with key defense leaders.

Table of Contents

  • What Capabilities Will the AV P550 LRR UAS Provide?
  • What Does the Initial Contract Cover?

What Capabilities Will the AV P550 LRR UAS Provide?

The Army said Friday the AV P550 platform, procured through the UAS Marketplace basic ordering agreement, is designed to support battalion commanders with reconnaissance, surveillance and target acquisition functions. The system is intended to support ground forces operating in complex and contested environments by enhancing situational awareness, enabling units to identify and engage hazards while maintaining a safe distance from enemy contact.

“The UAS Marketplace reduces traditional, lengthy procurement timelines to a few days. This allows us to get the most advanced capabilities into the hands of our Soldiers at the speed of relevance, ensuring they are equipped to meet current and future challenges,” said Danielle Medaglia, project manager for uncrewed aircraft systems.

What Does the Initial Contract Cover?

In August 2025, AeroVironment delivered its Group 2 P550 small UAS to the Army under the LRR program. This shipment, which includes both the P550 platforms and equipment training, supports Transformation in Contact, or TiC, brigades, ensuring these units can rapidly integrate the new technology into their training and active operations.

DHS/Executive Moves/News
Markwayne Mullin Sworn in as DHS Secretary
by Jane Edwards
Published on March 24, 2026
Markwayne Mullin. The Republican senator from Oklahoma has been confirmed as DHS secretary.

Markwayne Mullin on Tuesday was sworn in as the new Department of Homeland Security secretary during a ceremony at the White House.

The Senate on Monday confirmed Mullin, previously a senator from Oklahoma, in a 54-45 vote.

Markwayne Mullin Sworn in as DHS Secretary

The Senate’s confirmation of a new DHS secretary comes at a pivotal moment for homeland security policy and leadership. Gain deeper insights into priorities and initiatives shaping the agency’s direction at the 2026 Homeland Security Summit. Save your spot now to connect with agency and industry leaders at this GovCon event.

President Donald Trump selected Mullin earlier this month, tapping the Oklahoma senator to oversee DHS operations spanning border security, cybersecurity and domestic threat response.

Mullin’s confirmation follows the departure of former secretary Kristi Noem, who was named special envoy for the Shield of the Americas, a role in which the two-time Wash100 awardee will focus on Western Hemisphere security efforts.

His appointment, effective March 31, comes as DHS faces a prolonged funding impasse, with the department in a partial shutdown that has lasted more than five weeks amid congressional deadlock.

Table of Contents

  • Who Is Markwayne Mullin?
  • What Did Mullin Say About DHS Contracts & Enforcement Authority?

Who Is Markwayne Mullin?

Mullin is a first-term senator from Oklahoma and an enrolled member of the Cherokee Nation. His committee assignments include Armed Services, Appropriations, Health, Education, Labor and Pensions, and Indian Affairs.

His election marked a return of Native American representation in the Senate, making him the first tribal citizen to serve in the upper chamber in nearly two decades.

Prior to his time in the Senate, Mullin spent 10 years in the House representing Oklahoma. Outside of politics, the former mixed martial arts fighter has built a career in the plumbing business spanning more than two decades.

The Oklahoma State University Institute of Technology graduate holds an honorary doctorate from Bacone College.

What Did Mullin Say About DHS Contracts & Enforcement Authority?

During his confirmation hearing, Mullin signaled a shift in management approach at DHS, particularly in procurement oversight and enforcement practices. He said he would end a policy implemented under the previous leadership that involved the personal review of Federal Emergency Management Agency contracts above $100,000, according to Politico.

On immigration enforcement, Mullin outlined a more limited approach to the use of administrative warrants, saying that Immigration and Customs Enforcement agents should enter homes without a judicial warrant only in highly exigent circumstances. He also pledged to improve coordination with Congress.

Civilian/Cloud/News
NOAA Awards Contracts to Advance Cloud-Based Weather Forecasting Capabilities
by Miles Jamison
Published on March 24, 2026
Commerce's Howard Lutnick. NOAA's NWS awarded two contracts to transition its weather system to a cloud-based architecture.

The National Oceanic and Atmospheric Administration’s National Weather Service has awarded two contracts to transition its weather data and applications environment to a cloud-based architecture and develop two new NWS tools.

NOAA Awards Contracts to Advance Cloud-Based Weather Forecasting Capabilities

The Potomac Officers Club’s 2026 Digital Transformation Summit will be held on April 22. Register now to learn about various modernization efforts involving AI, cybersecurity and enterprise IT from federal, military and industry leaders.

Table of Contents

  • What Will the Cloud Transition Enable?
  • What New Proprietary Tools Are Being Developed?

What Will the Cloud Transition Enable?

By moving key capabilities of the Advanced Weather Interactive Processing System, or AWIPS, to the cloud, NWS forecasters will have remote access to meteorological, hydrological and satellite data, allowing them to issue forecasts and advisories without being tied to specific workstations, NOAA said Monday.

Forecasters will also be able to access systems from multiple devices and provide operational support across offices when needed. The platform also enables future integration of artificial intelligence and machine learning into forecasting models.

“For far too long American weather forecasters have relied on decades-old, hardwired technology to provide critical data to the American public. Under President Trump’s leadership, we are modernizing the National Weather Service’s operations using the cloud and our American tech stack,” said Secretary of Commerce Howard Lutnick.

The initial effort will focus on developing and launching cloud-based data and application environments to accelerate the adoption of new technologies, including AI-powered capabilities, and support the integration of data from both public and private sources.

What New Proprietary Tools Are Being Developed?

Under the contracts, the development of NWS Hydrometeorological Interactive Virtual Environment, or HIVE, and Centralized Integrated Real-Time Repository for Unified Services, or CIRRUS, will begin. HIVE will serve as the central application for data analysis and warning issuance, eventually replacing the legacy AWIPS, while CIRRUS will act as a cloud-based data warehouse, centralizing information from both the agency and its partners.

DoD/Government Technology/News
DIU Issues Solicitation for US-UK Initiative to Counter Undersea Threats
by Elodie Collins
Published on March 24, 2026
Defense Innovation Unit logo. DIU issued a REEF solicitation seeking tech to detect, track and defeat underwater threats.

The Defense Innovation Unit has issued a solicitation for the Robotic Exclusion & Engagement Framework, or REEF, a joint U.S.-U.K. initiative to counter the increasing use of autonomous underwater vehicles by adversaries and non-state actors.

Table of Contents

  • What Capabilities Are the US, UK Seeking Under the REEF Program?
  • How Does REEF Align With DOW’s Broader Counter-Drone Efforts?

What Capabilities Are the US, UK Seeking Under the REEF Program?

According to the Commercial Solutions Opening the DIU posted Monday, the United States and the United Kingdom are seeking technologies that could protect critical infrastructure, including ports and harbors, and expeditionary forces from underwater threats.

The countries are interested in a cohesive suite of systems that integrates commercial off-the-shelf sensors, edge processing and software to detect, track, classify and defeat various undersea threats, including unmanned underwater vehicles, remotely operated vehicles and semisubmersibles.

The governments want scalable, rapidly deployable technologies capable of integrating with existing defense systems across diverse maritime conditions. Areas of interest include advanced sensing technologies, such as sonar, electro-optical/infrared systems, and distributed acoustic sensing, and artificial intelligence and machine learning tools to distinguish threats from biological or environmental noise. The program is also open to systems with kinetic capabilities, but preference will be given to non-kinetic approaches such as bubble curtains and rapidly deployable nets.

DIU said U.S. and U.K. government innovation teams will assess proposed technologies. A prototype other transaction agreement and follow-on production contract may be awarded as a result of the CSO. Responses are due April 3.

How Does REEF Align With DOW’s Broader Counter-Drone Efforts?

REEF aligns with broader efforts across the Department of War to address threats posed by the proliferating use of unmanned systems by adversaries and non-state actors. The Pentagon issued a separate solicitation for counter-small unmanned aerial system technologies in February to enhance detection, tracking and classification of aerial threats across both homeland defense and tactical environments. 

Artificial Intelligence/Government Technology/Industry News/News
Treasury Introduces Private-Public Initiative to Advance Secure AI Adoption Across Financial Institutions
by Elodie Collins
Published on March 24, 2026
Treasury Secretary Scott Bessent. Bessent said AI is critical to financial stability and economic security.

The Department of the Treasury’s Artificial Intelligence Transformation Office and the Office of the Financial Stability Oversight Council have introduced a new public-private initiative that will convene regulators and financial and technology sector leaders to strengthen the security and resilience of the U.S. financial system.

Treasury Introduces Private-Public Initiative to Advance Secure AI Adoption Across Financial Institutions

Federal and industry leaders will discuss how AI is reshaping sectors at the Potomac Officers Club’s 2026 Digital Transformation Summit on April 22. Register now to gain insight into emerging strategies for scaling AI adoption while maintaining security, resilience and effective governance across complex regulatory environments.

Called the AI Innovation Series, the effort aims to explore and identify AI use cases and practical approaches for scaling the deployment of the technology in financial services without compromising safety, the department said Monday.

Table of Contents

  • Why Is the Treasury Department Focusing on AI?
  • What Other AI Programs Has the Treasury Department Launched?

Why Is the Treasury Department Focusing on AI?

A 2024 report from the Treasury found that financial institutions are expanding their use of AI to detect fraud, enhance cybersecurity and address operational risks.  

In a statement, Treasury Secretary Scott Bessent acknowledged the increasingly important role of AI leadership in maintaining financial stability and economic security.

“We are optimizing regulation to support growth for both Main Street and Wall Street: moving from a posture focused on constraint toward one that recognizes failure to adopt productivity-enhancing technology as its own risk,” he explained. “The Treasury Department will continue evaluating regulatory frameworks and enforcement policies to enable the U.S. financial sector’s leadership in AI adoption while preserving national security and long-term economic resilience.”

Christina Skinner, deputy assistant secretary for FSOC, agreed, adding that “the system becomes less efficient and less secure” without tools that can improve fraud detection, credit allocation and operational resilience.

What Other AI Programs Has the Treasury Department Launched?

The AI Innovation Series builds on Treasury-led efforts to support responsible AI adoption across the financial sector. In February, the department completed a public-private initiative to strengthen cybersecurity and risk management for AI systems. The effort produced resources designed to promote secure and resilient deployment.

Treasury also recently released an AI Lexicon and a Financial Services AI Risk Management Framework to standardize governance practices and help institutions manage AI-related risks.

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