Last month the Administration released a proposed budget for fiscal year 2025, which had some implications for how NITAAC Contract Holders do business with federal agencies. In this article, we highlight key takeaways from the proposed budget that will shape the landscape of artificial intelligence (AI), IT modernization, cybersecurity and health IT initiatives. 

Here are a few key takeaways:

1. Artificial Intelligence 
   The budget allocates over $2 Billion for National Science Foundation’s (NSF’s) research and development in AI and other emerging technologies. Additionally, it provides $30 million to continue NSF’s pilot for the National AI Research Resource for a second year.

   The budget also earmarks $455 million to advance AI in science and technology and to enhance AI’s safety, security and resilience at the Department of Energy. Plus, it requests $65 million for the Department of Commerce to “safeguard, regulate and promote AI, including protecting the American public against its societal risks.”

2.  IT Modernization
   Overall, 15 agencies are slated to experience either a decrease or no change in their IT modernization budget for 2025. The proposed FY2025 budget seeks a $75.1 Billion budget for IT spending across civilian agencies, which is slightly higher than the $74.4 Billion requested for FY2024. The primary focus lies in assessing agencies’ progress in IT modernization, identifying the right investments to support IT integration and innovation, and implementing planning to ensure a streamlined digital transformation. There is the desire to maintain consistent technological advancements year over year while aligning with agency timelines.
3. Cybersecurity 
   In the proposed budget for FY2025, the Cybersecurity and Infrastructure Security Agency (CISA) would be given an extra $103 million to strengthen defenses against hackers targeting federal DoD and civilian networks. Also, $470 million would be allocated to equip CISA with network tools like endpoint detection and response capabilities to protect federal assets. CISA would get $41 million for “critical infrastructure security coordination” and $116 million to oversee the implementation of the Cyber Incident Reporting for the Critical Infrastructure Act of 2022.
4. Health IT 
   The FY2025 budget proposal would allocate over $369 Billion for the Department of Veterans Affairs (VA). However, it does not designate funding specifically for new iterations of the VA’s modernized electronic health record system. This proposed budget marks a roughly 10% increase compared to the estimated FY2024 budget, which aims to boost spending on various department-wide initiatives. These include improvements to claims processing and the expansion of access to critical services.

Whether you’re interested in Cybersecurity, Health IT or AI, there are still huge opportunities to award on the CIO-SP3 and CIO-SP3 Small Business GWAC vehicles! 

Enjoy a streamlined order placement process and a robust 5-year performance period for each task order awarded, extending well beyond the October 29, 2024 sunset date. No need to hold back for CIO-SP4 — awards can be made right up to the final day! This gives more flexibility to quickly implement IT projects. Questions? Visit our website at www.nitaac.nih.gov, email NITAACsupport@nih.gov or call 1-888-773-6542.