Where does federal AI spending stand in 2026?

brookings.edu May 19, 2026

Where does federal AI spending stand in 2026?

Curated by Shubham · TechCapsules · May 19, 2026

AI-summarised brief · reviewed before publication

The Trump administration released its AI Action Plan in July 2025, focusing on deregulation and infrastructure investment to achieve global AI dominance. The plan shifts from previous cautious AI policies, emphasizing removing regulatory barriers and ideological bias. Federal AI spending is expected to increase, with a projected 44% year-over-year growth in worldwide AI spending from $1.75 trillion to $2.52 trillion.

💡 Why It Matters

· Dramatic growth in federal AI spending could help the US close the AI gap with China, while a chaotic approach may hinder progress.

AI Capsules Policies

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