By Gina Scinta, Deputy CTO, Thales Trusted Cyber Technologies

Has your agency begun its strategy for transitioning to post-quantum cryptography (PQC)? If you’re not fairly far along now, you’re actually a bit behind. New guidance from the administration this past March, along with a memo from the Department of War last year, is ramping up the urgency. In fact, some of the stalwart cryptographic solutions used in the federal sector will be given the axe in the next five years.

Fortunately, there are some simple steps you can follow to start gearing up for your PQC transition. We’ll address those steps in a moment, but let’s first understand the context of this increasingly pressing need for dealing with security in a post quantum world.

Cyber Strategy and the Push for Infrastructure Security

March 2026 saw the release of this administration’s Cyber Strategy for America. The strategy organizes priorities around six “pillars of action,” each of which has direct implications for both federal contractors and agency cybersecurity teams. Two of those pillars are particularly relevant to this discussion: securing critical infrastructure and modernizing and securing federal government networks.

The modernization pillar in particular calls for accelerating the adoption of cybersecurity best practices, PQC, zero-trust architecture, and the transition to the cloud. This is part of the administration’s desire to have decisions made and implemented at the agency level more quickly.

PQC is becoming essential in securing federal networks. And, the Cyber Strategy comes as the Department of War has announced prioritization of solutions using NIST- approved, CNSA 2.0-listed PQC algorithms in lieu of previously-accepted quantum resistant solutions that make use of symmetric key management protocols. The Department will cease to test, pilot, use, or procure commercial solutions using these symmetric key technologies for quantum resistance. So, for agencies and contractors still relying on any of those solutions, the clock is running.

Why the urgency? Experts project the first cryptographically relevant quantum computers could emerge as early as the next decade.

Protecting systems from the quantum computing threat can’t wait until 2030. Harvest now, decrypt later schemes involve collecting data encrypted with classical algorithms today and decrypting it once a sufficiently powerful quantum computer exists. Intelligence, personnel records, and operational communications being transmitted right now are being targeted with this in mind. This is not a future problem.

Meanwhile, past cryptographic migrations across federal landscape have taken over a decade. From a purely historical perspective, things are already behind schedule.

On top of all this guidance, it’s important to remember that NIST released its first finalized PQC standards in August 2024, and is now in the process of deprecating specific cryptographic primitive algorithms and schemes on a set schedule. Agencies that have not migrated before those cutoff dates will be running deprecated cryptography in critical systems.

A Migration Memo to the Department of War

Back in November 2025, the Department of War released a memo titled, “Preparing for Migration to Post Quantum Cryptography.” The memo was directed to senior Pentagon leadership, combat commands and field activity directors, and laid the groundwork for migrating to PQC. (This guideline memo builds on the Quantum Computing Cybersecurity Preparedness Act of 2022, which requires agencies develop a PQC transition timeline based on their assessment of how they use potentially vulnerable cryptography.)

“Advancements of Quantum Information Science (QIS) and cryptanalytically relevant quantum computers requires expedited migration to quantum-resistant cryptography to safeguard the Department’s information systems, communications, and personnel,” the November 2025 memo reads.

It goes on to say, “The migration to post quantum cryptography (PQC) must not only be planned and executed with deliberate urgency to maintain warfighter lethality and information dominance in the DoW global ecosystem, but also strategically coordinated…To achieve this level of coordination, we must identify PQC migration points of contact for information sharing and create processes for streamlining intake and prioritization of PQC solutions to support certification activities and timelines.”

The Department’s memo stresses that agencies must receive cryptographic intake and deployment approval before testing, evaluating, piloting, investing in, using, or deploying any quantum-resistant or quantum-resilient technologies. It also bans outright a set of technologies for use in providing confidentiality, authenticity, or integrity on DoD networks:

• Quantum Key Distribution (QKD)
• Solutions combining QKD with other cryptographic keys
• Quantum communications or networking
• Non-local quantum randomness generation
• Non-FIPS random number generation

Providing quantum resistance in solutions using cryptographic pre-shared keys (PSK) not provisioned through NSA Key Management Infrastructure for Type 1 devices will be sundowned on December 31, 2030. Symmetric Key Establishment, Agreement, and Distribution Protocols will be eliminated a year later, on December 31, 2031.

For future solutions, underlying technology must include crypto agility.

Crypto Agility: The Requirement Behind the Requirement

As organizations prepare for the post‑quantum era, crypto agility becomes essential—enabling systems to adopt PQC algorithms rapidly, minimize operational disruption, and remain resilient as cryptographic standards evolve. Many long‑established cryptographic programs have already internalized these principles, giving them the architectural headroom to absorb PQC’s larger key sizes and increased computational demands with minimal friction. NIST’s Cybersecurity White Paper CSWP 39 reinforces this need by detailing the tradeoffs, operational challenges, and interoperability considerations inherent in achieving true cryptographic agility.

For agencies, the actionable takeaway is clear: every modernization or procurement decision should explicitly require demonstrable crypto‑agility, ensuring that systems acquired today can adapt to tomorrow’s PQC mandates instead of becoming tomorrow’s technical debt. This shifts crypto agility from an abstract aspiration to a concrete acquisition criterion that safeguards mission longevity.

As organizations transition into the post‑quantum era, crypto agility becomes essential—enabling systems to rapidly adopt PQC algorithms, minimize operational disruption, and stay resilient against evolving cryptographic threats.

Seven Steps to a PQC Transition Strategy

So what are the steps agencies must take in developing their PQC transition strategy? There are seven:

• Awareness
• Inventory technology/prioritize systems
• Automate crypto discovery
• Automate inventory
• Set up a PQC test environment
• Practice crypto agility
• Apply quantum key generation and implement quantum-resistant algorithms

Let’s take a quick look at each step.

Awareness. Your transition strategy is a top-down initiative. Leadership must be fully aware of the challenge: not only the risks, but the specific actions required to meet them. The harvest now, decrypt later threat means that PQC migration isn’t a future budget line, it’s an active operational risk.

Inventory cryptographic technologies and prioritize high-risk systems. The Office of the National Cyber Director (ONCD) provided specific instructions to federal agencies on inventorying their cryptographic systems. ONCD directed agencies to submit prioritized cryptographic inventories by May 2023. For many, unfortunately, that was a paper exercise. A manual process is less precise than one using available electronic tools, and your cryptographic footprint has grown since that submission.

Automate crypto discovery. Crypto inventory is not a one-time task. Organizations continuously create new cryptographic instances across their environments. Automated discovery is the only practical way to maintain an accurate picture. You cannot migrate what you have not mapped.

Automate discovery and inventory. Multiple vendors offer automated cryptographic discovery tools. Assess what is available and match tools to your environment. Automated tooling surfaces cryptographic dependencies that manual processes miss entirely.

Set up a PQC test environment. Now that the NIST standards are finalized, it is time to upgrade your environment for testing. As previously noted, PQC algorithms generate larger keys, and the performance impact of those larger keys could affect your systems in ways you had not anticipated. Test before you deploy at scale.

Practice crypto agility. Supporting both classical and PQC algorithms simultaneously is what makes an organization crypto agile. Devices and platforms being procured today must be capable of this. If they are not, you have to begin modernizing those systems now.

Apply quantum key generation and implement quantum-resistant algorithms. The foundation of encryption is the quality of the cryptographic keys. Organizations should leverage a quantum random number generator (QRNG) to produce high-quality entropy as the basis for all keys and cryptographic operations. Encryption solutions must use the standardized NIST PQC algorithms, or be crypto-agile with a clear and near-term upgrade path to them.

The administration’s Cyber Strategy, the Department of War phase-out deadlines, and the NIST deprecation schedule all point in the same direction: Cryptographically dangerous quantum computers are coming, and the threat is real.

Agencies should plan their transition strategies now work. Automate your crypto discovery, stand up a PQC test environment, require crypto agility in new procurements, and prioritize migration on your highest-risk systems first.

Industry has been working on this for years. Agencies need to close the gap.

About Thales TCT

Thales Trusted Cyber Technologies, a business area of Thales Defense & Security, Inc., protects the most vital data from the core to the cloud to the field. We serve as a trusted, U.S. based source for cyber security solutions for the U.S. Federal Government. Our solutions enable agencies to deploy a holistic data protection ecosystem where data and cryptographic keys are secured and managed, and access and distribution are controlled.

For more information, visit www.thalestct.com

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The post Transitioning to Post-Quantum Cryptography: What Federal Agencies Must Do Now appeared first on Intelligence Community News.

Tan brings decades of experience building and scaling the foundational technologies that underpin modern computing. Before his 2025 appointment as CEO of Intel, he previously served as chief executive officer of Cadence Design Systems, where he transformed the company into a global leader in electronic design automation—the software and tools used to design the world’s most advanced chips. Across his career as an executive, investor, and board member, Tan has played a central role in shaping the modern semiconductor ecosystem. He has served on numerous public and private boards, serves as Chairman of Walden International, and is a founding managing partner of Walden Catalyst Ventures and Celesta Capital.

Tan’s appointment to the PsiQuantum board of directors comes as the company drives toward building the world’s first utility-scale, fault-tolerant quantum computers and continues to advance and scale its silicon photonics platform.

“I’ve known the PsiQuantum team for many years as an investor and have followed their progress closely as they’ve built one of the most compelling and differentiated approaches in quantum computing,” said Tan. “The technology they’ve developed is exceptional, and their focus on fault-tolerant systems that can be manufactured at scale using the semiconductor industry sets them apart. I’m excited to join the board and support the team as they work to bring this technology to the world.”

Tan’s board appointment follows the appointment of semiconductor industry veteran Victor Peng as interim chief executive officer, as well as co-founder Jeremy O’Brien’s transition into the role of executive chairman. Peng previously served as President of AMD and as CEO of Xilinx, where he led the company’s transformation into a leader in adaptive computing and through its acquisition by AMD.

“Lip-Bu has an exceptional track record of leading and guiding technology companies from start-ups to large public companies,” Peng. “As we advance our technology and begin deployment of utility-scale, fault tolerant quantum computers, his insights on high performance computing, advanced manufacturing, ecosystems, and customer adoption will be invaluable.”

“From day one, PsiQuantum has taken the long-term view that quantum computing must be built by leveraging the semiconductor industry,” said O’Brien. “Lip-Bu’s experience scaling technologies, companies, and global ecosystems will help accelerate our path to delivering on that vision and it’s fantastic to have a long-time supporter officially join our board.”

Source: PsiQuantum

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This latest agreement, totaling $7.5 million and supported by funding from the State of Maryland’s Capital of Quantum Initiative via the University of Maryland Economic Development Corporation (UMEC), builds on the strategic partnership first announced in September 2024.

“Our longstanding partnership with the University of Maryland meets the need to accelerate access to advanced quantum computing, quantum networking capabilities, and talent development,” said Niccolo de Masi, chairman and CEO of IonQ. “IonQ’s collaboration with UMD reflects our commitment to Maryland’s ‘Capital of Quantum’ initiative, as we broaden QLab to include quantum networking, hardware upgrades, and deeper collaboration with its researchers.”

“This expanded agreement strengthens the QLab as a premier testbed for quantum networking and computing and deepens opportunities for our faculty and students to work hands-on with industry-leading systems,” said University of Maryland President Darryll Pines. “Building on our strong relationship with IonQ through the QLab is critical to advancing discovery, developing talent and reinforcing Maryland’s position as the Capital of Quantum.”

This next step in the ongoing collaboration deepens IonQ’s integration with UMD researchers and students, positioning QLab as a leading testbed for next-generation quantum technologies, including quantum networking and memory systems – specifically, the first deployment of IonQ’s silicon vacancy (SiV)-based quantum memory node. This industry-leading infrastructure will complement existing UMD efforts, such as the Mid-Atlantic Region Quantum Internet (MARQI) network, across multiple areas of quantum technologies.

Source: IonQ

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This investment marks a pivotal expansion of Escape Velocity’s venture portfolio into the quantum ecosystem, building upon the firm’s proven track record of backing high-impact dual-use technologies, which includes its previous investment in SilverThread, a Cambridge, Massachusetts-based enterprise software modernization firm and Bit Flips a Denver based fintech firm. Diffraqtion is recognized for its groundbreaking work utilizing quantum imaging to bypass the traditional limits of classical optical systems. Their proprietary technology enables imaging at unprecedented resolutions and speed-of-light compute, offering critical capabilities for national defense, space domain awareness, and advanced intelligence gathering.

“The Escape Velocity mission is to identify patriots and innovators and accelerate the development of transformative technologies that are vital to U.S. national security interests,” said JP Parker, CEO at Escape Velocity. “Diffraqtion isn’t just improving how we see the world; they are fundamentally redefining the boundaries of optical physics and edge compute. We are thrilled our venture arm is supporting their journey as they transition from revolutionary research to critical national security applications.”

The capital infusion will be used to accelerate Diffraqtion’s product development timeline, expand their engineering team, and facilitate the launch of their first commercial-grade quantum sensor suite for both government and commercial deployment.

“Partnering with Escape Velocity provides us with more than just capital; it provides us with a strategic ally that deeply understands the national security landscape and the nuances of scaling deep-tech,” said Johannes Galatsanos, CEO of Diffraqtion. “This investment ensures that our quantum cameras can be rapidly integrated where they are needed most, especially next-generation intelligence systems that are vital to national security.”

Source: Escape Velocity

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“Identity is no longer just an access point. It’s the new frontline in an era where quantum decryption and AI-driven impersonation converge to break what was once unbreakable,” said Karl Holmqvist, founder and CEO of Lastwall. “Most organizations still treat identity as a checkbox, but the clock is ticking faster than they realize. This partnership with Carahsoft gives government and defense leaders a direct, trusted path to accelerate adoption of Zero Trust principles at the foundational identity layer, before today’s encryption becomes tomorrow’s open book.”

Credential compromise remains the leading cyberattack vector in the public sector, making identity the front line of defense. The Department of War (DoW) requires all Components to achieve Target-Level Zero Trust compliance by 2027, while Executive Order 14306 directs all federal agencies to support post-quantum cryptography (PQC) by 2030, creating a growing urgency to modernize authentication and ensure long-term resilience against evolving threats. Trusted by the U.S. DoW’s Defense Innovation Unit (DIU) and the Government of Canada, Lastwall’s IDCommand Suite meets this need by replacing outdated and fragmented access systems with a unified Zero Trust identity framework that secures cloud, hybrid and disconnected environments, with quantum resilience built in.

“Our partnership with Lastwall will help us deliver secure, quantum-resilient identity solutions to our government customers,” said Brian O’Donnell, vice president of cybersecurity solutions at Carahsoft. “Together with our reseller partners, we look forward to helping agencies modernize authentication, reduce credential risk and advance Zero Trust initiatives in line with new security mandates.”

Source: Carahsoft

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The Air Force Research Laboratory and AFWERX have partnered to streamline the SBIR and Small Business Technology Transfer (STTR) process by accelerating the small business experience through faster proposal to award timelines, changing the pool of potential applicants by expanding opportunities to small business, and eliminating bureaucratic overhead by continually implementing process improvement changes in contract execution. The DAF began offering the Open Topic SBIR/STTR program in 2018 which expanded the range of innovations the DAF funded, and as awarded on Jan. 15, 2026, QuSecure will continue its journey to create and provide innovative capabilities that will strengthen the national defense of the United States of America.

“This TACFI award advances QuSecure’s work with Air Force Global Strike Command (AFGSC) to provide cryptographic resilience in support of the strategic deterrence mission,” said Patrick Shore, director of strategy, government at QuSecure. “AFGSC operates some of the nation’s most enduring platforms, including the B-52, where secure communications and trusted cryptography are critical for mission success. Our objective is to mature the technology in preparation for procurement and long-term sustainment to meet AFGSC mission needs.”

“We are thankful to our AFGSC and AFWERX partners for their continued support and for their leadership in advancing quantum-resilient cybersecurity,” Shore continued. “The impact of this work extends beyond this award, marking an important step toward operationalizing quantum-resilient security for the U.S. Air Force and the broader Department of War.”

Source: QuSecure

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Together, the companies will help government organizations address increasingly complex operational challenges, from large-scale optimization and resource allocation to advanced analytics, image recognition, and more. Through the partnership, agencies can take advantage of mission-ready next-generation technologies, enabling them to operate more efficiently, respond faster, and deliver stronger mission outcomes.

“As agencies move beyond AI experimentation and toward operational scale, the ability to optimize complex systems in real time is becoming a defining requirement,” said Alka Bhave, chief operating officer and national security general manager at Unissant. “Our partnership with D-Wave positions us to bring forward practical, high-impact solutions that leverage quantum technologies in ways that are secure, scalable, and aligned to mission needs.”

Federal agencies are entering a new era in which traditional computing approaches alone may not be sufficient to manage the growing complexity of modern mission environments. Persistent AI workloads, rising infrastructure demands, and increasingly dynamic operational conditions are driving the need for more advanced computational strategies.

Manish Malhotra, founder and executive chairman of Unissant, recently spoke at D-Wave’s Qubits 2026 conference on how quantum computing and AI are moving into real-world, mission-critical environments. He noted that the partnership reflects a broader shift in how emerging technologies are being operationalized across government.

“We are approaching an inflection point where AI is no longer constrained by algorithms alone, but by the complexity of the environments in which it operates,” said Malhotra. “Quantum computing, particularly when paired with classical approaches, offers a powerful way to navigate that complexity. Our partnership with D-Wave is focused on translating these advanced capabilities into practical solutions that help agencies scale innovation responsibly and effectively.”

Through this partnership, Unissant customers can gain access to D-Wave’s hybrid quantum-classical technologies, which are designed to solve complex optimization problems by evaluating vast numbers of potential outcomes and identifying efficient paths forward under real-world constraints. Beyond optimization, D-Wave’s capabilities support a range of advanced use cases such as image recognition and pattern detection, workforce and asset allocation modeling, and fraud detection and anomaly identification.

“Public sector organizations need practical ways to apply advanced computing technologies to their most complex challenges,” said Jack Sears, vice president of government business solutions at D-Wave. “By partnering with Unissant, we are expanding our ability to support federal agencies with hybrid quantum-classical solutions that deliver measurable operational value while also helping agencies take meaningful steps toward the next generation of computing.”

Source: Unissant

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O’Brien will lead the board of directors and continue to guide PsiQuantum’s strategy and key partnerships, working closely with the leadership team to deliver on the founding team’s mission of building and deploying the world’s first utility-scale quantum computers. With Peng serving as interim CEO and O’Brien in the executive chairman role, PsiQuantum has experienced leadership in place as it conducts its search for a permanent CEO.

Over the past decade, PsiQuantum has built the core technologies required to deliver and deploy fault-tolerant quantum computers. This includes the development of its mass-manufacturable silicon photonic chipset, Omega; new platforms and partnerships for advancing fault-tolerant algorithms; intermediate scale test systems; new cryogenic form factors; and the announcement of the world’s first utility scale quantum computing sites in Brisbane, Australia, and Chicago, Illinois. Peng’s deep experience scaling complex technologies and leading global organizations through periods of rapid growth and execution will build on this foundation to accelerate PsiQuantum’s core mission.

“PsiQuantum was founded to realize the potential of quantum computing, and the team has spent years doing the hard technical work to make that possible,” said O’Brien. “As we shift into large-scale deployment and execution, Victor brings exactly the leadership we need. He has guided multiple major computing platform transitions, and I’m excited to partner closely with him as we deliver on PsiQuantum’s mission.”

Peng will lead PsiQuantum’s day-to-day operations and execution, shaping the company’s business, financial, and operational strategies. In this role, he will leverage his industry experience leading multi-billion-dollar businesses and scaling technologies and teams. This includes advancing PsiQuantum’s utility-scale quantum computing systems in Australia and Chicago, driving business growth, overseeing technical development across silicon photonics and other core platforms, and partnering closely with the company’s leadership team.

“PsiQuantum has done the hard work to establish a real foundation for utility-scale quantum computing — from silicon photonics to fault-tolerant architectures and large-scale deployments,” said Peng. “The task ahead is execution. Jeremy and the founding team have built something truly unique, and I’m excited to partner closely with them to help translate their mission into deployed systems that unlock this technology.”

At AMD, Peng helped shape the company’s broader platform strategy, integrating hardware, software, and system-level architectures to address emerging AI workloads. Prior to joining AMD, Peng served as CEO of Xilinx, where he led the company’s transformation into a global leader in adaptive computing, culminating in its approximately $49 billion acquisition by AMD in 2022. Over his career, Peng has played a central role in major computing shifts spanning CPUs, GPUs, FPGAs, and system-level architectures.

Source: PsiQuantum

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The Seed Innovations team will join IonQ’s Quantum Infrastructure business and Seed Innovations founder Marlu Oswald will report to Frank Backes, president, IonQ Quantum Infrastructure.

At IonQ, Seed will deploy its expertise in machine learning (ML), advanced software architecture, and cloud migration to accelerate IonQ’s work in developing enterprise grade, AI-driven software layers that will be essential for managing and scaling complex quantum workloads.

Founded in 2013, Seed Innovations has established itself as a provider of full-lifecycle software development, legacy system upgrades, and R&D for the Department of War (DoW), the Intelligence Community, and the commercial sector.

“This acquisition expands IonQ’s software capabilities as we build the world’s only enterprise grade, full-stack quantum platform,” said Backes. “Seed Innovations’ expertise in machine learning and automated scaling architecture will be instrumental in optimizing performance across our quantum applications.”

Source: IonQ

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“This transformational acquisition enables IonQ to materially accelerate its quantum computing roadmap and secure its fully scalable supply chain domestically. With secure, U.S.-based design, packaging and chip fabrication – IonQ will benefit from vertical integration across our increasingly interlinked quantum computing, quantum networking, quantum security, and quantum sensing applications for land, sea, air, and space,” said Niccolo de Masi, IonQ chairman and chief executive officer. “We are confident that uniting our revolutionary quantum platform with SkyWater’s leading capabilities in parallel innovation, engineering, and manufacturing, will accelerate America’s ability to deploy quantum technology for mission critical applications. This historic transaction will significantly accelerate commercialization of our fully fault-tolerant quantum computers and benefit our nation’s broader quantum industry, enhancing our national security, economic strength, and technological superiority.”

de Masi continued, “SkyWater is an unrivaled technology innovation partner, and with IonQ’s existing quantum sensing and quantum networking capabilities it will become the preeminent quantum merchant supplier under the continued leadership of Thomas Sonderman. Together, we remain committed to redefining what is possible for business, government, and society in the quantum era while unlocking long‑term value for shareholders of both companies.”

“This combination marks a pivotal moment in SkyWater’s evolution,” said Thomas Sonderman, chief executive officer of SkyWater Technology. “As the largest pure-play semiconductor foundry based in the U.S., SkyWater is already the partner of choice for advanced development and manufacturing services in both the public and private sectors as quantum computing and manufacturing increasingly align. Joining forces with IonQ will accelerate multiple engineering pathways for next-generation quantum chips, delivering speed, precision, and scale. Importantly, SkyWater remains fully committed to all of our semiconductor foundry customers and will continue as the quantum merchant supplier of choice with an even broader set of quantum sensing and quantum networking solutions for all of our customers and partners.”

The combination of IonQ and SkyWater will create the first of its kind, vertically integrated quantum platform company. In addition to strengthening IonQ’s position as a trusted ecosystem partner and merchant supplier in aerospace and defense, the combined company will be positioned to continue delivering innovative breakthroughs for customers across industries, including pharmaceuticals, finance, and cloud and enterprise computing, among others. IonQ’s proprietary technology and architecture, combined with SkyWater’s world-class onshore R&D and manufacturing capabilities and differentiated development services, will create a full quantum ecosystem.

Following the close of the transaction, SkyWater will operate as a wholly owned subsidiary under the SkyWater name serving a full range of customers. Sonderman will lead the subsidiary and report to de Masi.

Source: IonQ

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