With a deadline for federal agencies to implement post-quantum cryptography (PQC) strategies by 2035, government cyber experts are actively working to accomplish this mandate.

The Department of War is targeting full quantum security by 2031, so post-quantum cryptography (PQC) has become a top operational priority. To get started on this deadline, DoW issued a November 2025 memo to senior Pentagon leadership, combat commands and field activity directors that laid the groundwork for migrating to PQC. New deadlines are creating opportunities for federal contractors to deliver tools and expertise to modernize the nation’s cryptographic infrastructure.

While this article focuses on the DoW, the broader federal government is expected to follow because of the looming threat posed by quantum-enabled adversaries.

New regulatory guardrails

The DoW has established strict protocols governing the testing and deployment of quantum-resistant technologies. Agencies now require cryptographic intake and deployment approval before contractors can test, evaluate, pilot, invest in or deploy any quantum resistant or quantum resilient tools.

The government is also narrowing acceptable technologies by banning or phasing out systems that fail to meet new standards:

• Banned technologies: The DoW has banned quantum key distribution (QKD), hybrid QKD solutions and quantum communications or networking for confidentiality, authenticity or integrity.
• Prohibited randomness: Non-local quantum randomness generation and non-FIPS random number generation are prohibited on DoW networks.
• Phased-out solutions: Commercial cryptographic pre-shared key (PSK) solutions not provisioned through NSA’s key management infrastructure (KMI) for Type 1 devices will be eliminated by December 31, 2030.
• Protocol deadlines: Symmetric key establishment, agreement and distribution protocols will be phased out by December 31, 2031.

The four-pillar quantum budget

Federal quantum spending is concentrated across four major technology pillars:

• Quantum computing ($706.47M): The largest investment area, driven by DARPA, the Navy and the Air Force.
• Quantum security ($452.28M): Critical to near-term transition efforts, with DARPA and the Air Force leading again.
• Quantum sensing ($363.68M): Led by DARPA and the Office of the Secretary of Defense.
• Quantum networking ($147.92M): Supported heavily by the Space Force and DARPA.

Post-quantum opportunities

Given this budget landscape, contractors should consider several targeted strategies:

Specialize in service-specific hardening. Each military branch has dedicated quantum-related funding. Tailor offerings to mission-specific needs:

• Air Force: Information Systems Security Program ($60.93M) and Black Arrow (Remote Rekey Next Generation).
• Army: Tactical hardening for quantum and information protection in mobile dynamic networks.
• Navy: Target Tactical Communications (TACCOM) and common avionics upgrades.

Support the “inventory and assessment” phase. Before agencies can migrate to PQC, they must identify every cryptographic system across their networks, from national security systems to IoT and physical access control. DISA has allocated $11.83M for DoWIN systems engineering and support, creating demand for engineering, integration and AI-enabled inventory solutions.

Target high-value R&D Programs. DARPA offers some of the most immediate opportunities, including:

• Quantum Benchmarking Initiative (QBI): $282M in FY2026
• Quantum Augmented Network (QuANET): $16.5M

Solutions providers should position their products to support research, benchmarking and early-stage quantum experimentation.

While quantum security is the most immediate sales opportunity, quantum computing, sensing and networking remain in early R&D phases. These areas will become long-term growth markets for solutions providers willing to invest early.

The first quantum computers are expected to be in use before 2030, so the federal government is moving fast to counter the threat of quantum-enabled adversaries. Contractors should be aligned with DoW programs for PQC and related technologies to clearly demonstrate how their capabilities support mission-critical modernization goals.

immixGroup can assist you in discovering the specifics surrounding PQC opportunities. Reach out to us here to discover where agencies are focusing their attention and how to make the correct contact.

This article originally ran in Washington Technology. For the full text of that article, click here.

Joshua Iseler and Grier Egan are senior market intelligence analysts for immixGroup, a public sector business of Arrow Electronics. immixGroup delivers mission-driven results through innovative technology solutions for public sector IT.