In a major move signaling the United States’ commitment to global AI leadership, the White House Office of Management and Budget (OMB) today announced two pivotal updates to federal policy: OMB Memorandum M-25-21, focused on accelerating federal AI innovation and governance, and OMB Memorandum M-25-22, aimed at modernizing the acquisition of AI technologies across government agencies.
These updates are part of President Donald J. Trump’s Executive Order directing the federal government to break down bureaucratic barriers and embrace AI as a cornerstone of national strategy, economic growth, and public service transformation.
“President Trump recognizes that AI is a technology that will define the future,” said Dr. Lynne Parker, Principal Deputy Director of the White House Office of Science and Technology Policy (OSTP). “These revised memos remove outdated restrictions and provide clear guidance to support cost-effective, secure, and responsible AI adoption in the federal government.”
The White House emphasized a dual focus: ensuring federal agencies embrace AI to improve services and operational efficiency while maintaining strong protections for privacy, civil rights, and civil liberties.
Streamlining Innovation, Cutting Waste
Greg Barbaccia, Federal Chief Information Officer, reinforced the urgent need for reform:
“Agencies have been hindered by obsolete procurement and oversight structures. These updates prove we can spend taxpayer money more wisely, encourage innovation, and strengthen trust in how the government uses AI.”
The new memos provide a roadmap for integrating AI tools in everything from fraud detection and citizen services to mission-critical defense and national security programs. Federal CIO offices will now be expected to establish AI governance frameworks, test AI models for fairness and reliability, and align AI projects with national standards for transparency and accountability.
A Boon for American AI Companies
The announcement has been met with applause from leaders in the AI and cybersecurity space. Waylon Krush, CEO of ZeroTrusted.ai, a Central Florida-based AI security firm, welcomed the move:
“This is the kind of bold policy we’ve been waiting for. By modernizing federal AI procurement and adoption, the government not only becomes a better customer — it also sets the stage for American AI companies to lead globally. This gives innovators the chance to deliver secure, privacy-preserving, and mission-driven solutions at scale.”
What’s Inside the Memos?
- M-25-21: Accelerating Federal Use of AI through Innovation, Governance, and Public Trust
- Requires agencies to appoint Chief AI Officers and implement AI governance boards.
- Mandates inventorying and testing of AI systems for risk and bias.
- Pushes agencies to align with NIST’s AI Risk Management Framework.
- M-25-22: Driving Efficient Acquisition of Artificial Intelligence in Government
- Provides clear acquisition pathways tailored for AI.
- Reduces barriers for innovative AI startups to work with government.
- Encourages public-private collaboration for secure AI supply chains.
What’s Next?
With over $200 billion in projected AI-driven efficiency savings and tens of thousands of potential AI applications in federal systems, these policy updates could unlock a new era of digital government. As the memos go into effect, agencies will be expected to report quarterly progress and maintain transparency on AI deployments.
For full details, view the updated policy documents:
🔹 M-25-21 – Accelerating Federal Use of AI
🔹 M-25-22 – Efficient Acquisition of AI
🔹 Fact Sheet – White House AI Policy Updates