The Wrap: Fed AI and ‘Radical Change’; Fiscal Service Security Flags; PMA on the Way?

Welcome to The Wrap for Friday, March 14!

From the newsroom at MeriTalk, it’s the quickest read in Federal tech news. Here’s what you need to know today:

?

Fed AI and ‘Radical Change’

After the White House and its Department of Government Efficiency get done with hacking many Federal civilian agencies down to smaller versions of themselves, "radical change" is going to be needed across the government to invest in AI technologies and make their use a national priority. That’s just one of the top lines from MeriTalk’s “Tech Tonic: 2025 Federal CAIO Outlook” study that goes live on Monday (hit it here on March 17). At last night’s Tech Tonic bash at Morton’s in D.C., MeriTalk Founder Steve O’Keeffe previewed the researched findings which are based on straight talk from 10 Federal chief AI officers who represent the tip on the AI implementation spear. “As we look at the cuts that are happening with DOGE, it seems the only way we’re going to get the agencies running is by implementing new technologies a lot more aggressively, and artificial intelligence will be increased,” O’Keeffe said. “There are some very challenging findings in the report, and I think we need to be real about that, especially at this time,” he emphasized. A couple of other sneak peeks: AI needs to be a full-time job at the top of agencies – not the part-time or dual-hat role that it often is now. And as Congress struggles to get the government funded at 2024 levels, agency AI chiefs are wondering where the money is going to come from for a decisive tech push. Please do hit the button on Monday morning for much more.

?

Fiscal Service Security Flags

The US Government Accountability Office (GAO) – Congress’s personal watchdog and many a journalist’s favorite friend – is flagging the Treasury Department’s Bureau of the Fiscal Service’s management of system security plans (SSPs) for the Federal government’s central banking account, which it said has limited insight into the accuracy of financial information.?In a?letter?addressed to Fiscal Service Commissioner Timothy Gribben and sent on March 13, Anne Sit-Williams, director of Financial Management and Assurance at GAO, wrote that the Federal watchdog was unable to verify the accuracy of financial information for the General Fund – which serves as the Federal government’s central account – in part due to limited documentation and maintenance of external system connections for its SSPs.?What’s the big deal? The bureau processes trillions of Federal government payments each year, so security ought to be high up on the list. “Until Fiscal Service enacts processes that reasonably assure complete and accurate information system security documentation, including SSPs and interconnection agreements, the agency increases the risk that (1) controls are not implemented effectively and security requirements have not been met and (2) connected systems and the data they store, process, or transmit, as well as other networks connected to those systems, can be compromised,” wrote Sit-Williams.?The bureau is pledging action toward a fix.

?

PMA on the Way?

It’s still way too early to tell, but the top exec at the Office of Management and Budget (OMB) who usually writes the tech-driven President’s Management Agenda (PMA) is now in the nomination pipeline. President Trump this week?nominated?Eric Ueland, a veteran Senate and White House aide, to serve as the deputy director for management at OMB, which reports up to Director Russell Vought. In addition to working on the PMA, the deputy director for management role also serves as the nation’s Federal chief performance officer to ensure agencies meet their objectives. Ueland is currently the acting chief of staff of OMB. Previously, he served as the legislative affairs director during the first Trump administration, and has also held numerous roles on Capitol Hill, including as the senior advisor and GOP staff director of the Senate Budget Committee and chief of staff to former Senate Majority Leader Bill Frist.

?

Connolly’s AI Query

Further on the government AI front, House Oversight and Reform Committee Ranking Member Gerry Connolly, D-Va., is demanding answers from the largest 24 Federal agencies about their use of AI tech – particularly in connection with DOGE activities – and whether they are complying with Federal security laws. In March 12?letters?to the agencies, Rep. Connolly cites recent?reports?that DOGE personnel have fed sensitive data from the U.S. Department of Education into AI software. While the use of AI within Federal agencies is not new, feeding sensitive data into AI software – especially commercial AI software – increases the chances that it will be leaked or fall victim to a cyberattack. “The American people entrust the Federal government with sensitive personal information related to their health, finances, and other biographical information on the basis that this information will not be disclosed or improperly used without their consent, including through the use of an unapproved and unaccountable third-party AI software,” Connolly reminded. The congressman also cited?reporting?that reveals government IP addresses were linked to Inventry.ai – an AI product designed for supply chain management. However, this vendor reportedly used by the DOGE team has not been approved for Federal cloud use through the FedRAMP process. Reply letters are to the congressman are due March 26.

?

Once again, let’s “call IT a day,” but we'll bring you more next week. Until then please check the MeriTalk breaking news website throughout the day for the latest on government IT people, process, and policy. And finally, please hit the news tip jar [with leads, breaking news, or simply your two cents] at [email protected].