Employees across every department are experimenting with generative AI tools to write emails, analyze data, summarize documents, and debug code. According to IBM’s 2025 Cost of a Data Breach Report, one in five organizations experienced a breach tied to shadow AI, and 63% of breached organizations either lacked an AI governance policy or were still building one. Meanwhile, research shows that roughly 80% of office workers now use some form of public AI, often without their IT department’s knowledge or approval. 

This gap between adoption and governance is creating an unmanaged attack surface that traditional security tools may overlook.

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The barrier between federal and state cloud procurement has effectively dissolved for authorized providers. With StateRAMP’s rebranding to GovRAMP and the FedRAMP RFC-0024 mandate for authorization packages, the opportunity to pursue a more unified compliance strategy has never been more practical. 

Organizations that have already invested the time, money, and engineering effort required to earn a FedRAMP authorization now have a clear, repeatable path to extend that investment into the state and local market without commissioning a second assessment. This article lays out the strategic and technical rationale for that approach. 

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The updates and expansion of FedRAMP make a few things clear, the most significant of which is that government agencies are counting on cloud tools to help them do their work. But they also want certainty. The FedRAMP Ready designation was meant to bridge the gap between agencies seeking audited platforms and SaaS providers seeking authorization on a more realistic path. 

Now, with the Ready designation retiring in July 2026, it seems that the door may be closing. But the move from traditional ATOs to persistent validation opens it up again and makes it much more viable for these SaaS providers to enter the federal market. 

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