Where does federal AI spending stand in 2026?

In July 2025, the Trump administration released its blueprint for artificial intelligence—America’s AI Action Plan—with a focus on deregulation and infrastructure investment to achieve “global AI dominance.” The plan represents a notable shift from previous, more cautious AI policies of the Biden era and emphasizes removing regulatory barriers and “ideological” bias in AI. It does so through three pillars: accelerating AI innovation, building American AI infrastructure, and leading in international AI diplomacy and security. In this report, we analyze the federal AI spending plan for 2026, presumably under the direction of the administration’s AI Action Plan, to better understand how federal AI spending is evolving. Further, given that it is projected that worldwide AI spending will grow from $1.75 trillion in 2025 to $2.52 trillion in 2026 (a 44 percent year-over-year growth), we would also expect to see a dramatic rise in the overall AI spend by the federal government.