This legislation, titled the "Smart Cities and Communities Act of 2025," seeks to advance the adoption of smart technologies and systems within communities nationwide. Its primary purpose is to enhance community livability, improve services, boost communication, and increase safety, mobility, energy productivity, and resilience against disasters. The bill also aims to reduce civic costs, traffic congestion, and air pollution, while promoting equity, economic growth, and opportunities for communities of all sizes.

To achieve these goals, the Act mandates improved federal coordination and outreach regarding smart city technologies. It emphasizes promoting the quality and performance of these technologies while rigorously protecting data security and individual privacy. A key objective is to demonstrate the value of local government-owned and -operated smart services through performance standards.

The bill establishes an Interagency Council on Smart Cities, co-chaired by the Office of Science and Technology Policy and the Secretary of Commerce, to coordinate federal activities and funding. This Council will prioritize scalable technology demonstrations, data sharing, private sector innovation, workforce development, and the equitable distribution of benefits. It also requires a multiyear strategy for federal coordination, private sector partnerships, and international cooperation, alongside a workforce needs assessment.

A significant provision is the creation of a Smart City and Community Resource Guide, an online, free resource for states and communities. This guide will compile existing federal programs, examples of public-private partnerships, best practices for integrating smart technologies, and guidelines for cybersecurity and data privacy. It also includes technical specifications for broadband infrastructure to support smart city initiatives.

The Act authorizes a Technology Demonstration Grant Program, providing $100 million annually from fiscal years 2026 through 2030, to fund projects in diverse communities, including small, medium, rural, and Tribal areas. These grants aim to showcase the benefits of smart city investments, facilitate technology adoption, and validate cost savings and performance improvements. Grantees must agree to follow best practices for evaluating effectiveness and sharing data publicly.

To address security concerns, a Cybersecurity Working Group will be convened to develop tools for communities to evaluate and protect smart city technologies from cyber threats. This group will assess the need for Internet of Things cybersecurity standards, considering whether they should be voluntary or mandatory. Additionally, the bill establishes a TechHire Workforce Training and Development Pilot Program, allocating $100 million annually for five years, to provide competitive grants for technology-based job training programs focused on smart city needs, privacy, and cybersecurity.

Further assistance includes a GAO study on innovative financing mechanisms for smart city projects and the establishment of technical assistance programs. The Department of Energy will also launch a Smart City Voucher Pilot Program, allowing cities and communities to access expertise and infrastructure from National Laboratories, and expand its Technologist in Residence Pilot Program to foster partnerships with communities on smart city research and development, with $20 million authorized annually for these efforts.

To ensure seamless integration, the bill mandates the Secretary of Commerce, through the National Institute of Standards and Technology, to promote the development of standards and interoperability frameworks. This involves surveying existing standards, identifying gaps, recommending harmonization, and developing a consensus-based framework for information management and exchange, with cybersecurity and privacy as core elements. The goal is to foster innovation and economic competitiveness by enabling greater interoperability across smart city devices and systems.

Finally, the legislation promotes international cooperation and best practices, authorizing $20 million annually for activities that enable global collaboration on smart city goals and solutions. It also directs the Secretary of Commerce to establish a strategic international smart cities and communities trade program, including trade missions, to promote the export of United States smart technologies, stimulate job growth, and assist U.S. businesses in foreign markets.