We define IoT for the purposes of our report as the concept of  connecting and interacting with a wide array of objects through a  network. In this report, we  focus on the application of IoT within a community setting—often referred  to as a “smart city” or “smart community”—with the aim to generally  improve the livability, management, or service delivery of that community. We identified at  least 11 federal agencies that have a key role in supporting IoT in  communities, either because they support research or communities,  oversee privacy or security protections and threats, or have direct  authority over IoT issues. In Addition to Broad IoT Research and Oversight, Federal Agencies More Directly Support Communities by Funding IoT Projects and Fostering Collaboration

		Broad Federal IoT Research and Oversight Provide Underlying Support for IoT in Communities

			Research

Many of the federal agencies we reviewed are conducting or funding  broad research in IoT-related technologies. As communities increasingly  deploy IoT devices, they are more dependent on the underlying  communications systems—both wired and wireless network systems— that enable those devices to communicate with each other and with other  systems. EPA awarded $40,000 each to  Baltimore, Maryland, and Lafayette, Louisiana, to develop innovative  strategies for deploying sensor platforms and managing the data  collected from 300 sensors, as well as sharing lessons learned with  other communities. Federal Government Also Supports Communities’ IoT Projects by Fostering Interagency and Community Collaboration

			Interagency Collaboration

Issues related to IoT in communities cut across multiple sectors and  government agencies—that is, no single government agency addresses  all aspects of IoT or communities’ IoT efforts. To promote government-wide collaboration in supporting deployment of  IoT in communities, the White House created an interagency Smart Cities  and Communities task force in July 2016—co-chaired by representatives  from DOT, NIST, and NSF—that is coordinated through the Networking  and Information Technology Research and Development (NITRD)  program. According to  federal officials who are chairing the efforts, the public comments will help  inform a revised federal strategic plan, which, as of April 2017, is  anticipated for publication in the summer of 2017. Community Collaboration

Some federal agencies have undertaken efforts to support collaboration  at the community level, across local governments, academia, and the  private sector. Also, at the country level, Sweden  announced in June 2016 a formal program that supports collaboration  among government, private, and academic stakeholders to create  innovative solutions for specific societal challenges, one of which is  “smart cities.”

	Selected Communities Use Federal Funds with Other Resources to Deploy IoT Projects but Face Various Challenges Integrating Projects

		Communities Are Using Federal Funds in Conjunction with Other Funding and Expertise to Deploy IoT Projects

			Financial Support

In planning and deploying IoT projects, all of the communities we  reviewed are using federal funds with other direct funding and in-kind  support. For example, according to City of Columbus  representatives, it used its $50 million award from DOT’s Smart City  Challenge to leverage about an additional $90 million in support from  community partners. A variety of representatives that we spoke with—representatives  from three of the domestic communities and two of the foreign  governments, as well as seven academic and industry representatives— highlighted that local government departments and federal grants tend to  be focused on one sector (e.g., transportation, energy, public safety) of a  community, inhibiting IoT project integration. For  example, NIST recognized that IoT projects are generally based on  custom systems that are not interoperable, portable across cities, or cost- effective. Agency Comments

We requested comments on a draft of this product from Commerce, DOE,  HHS, DHS, DOJ, DOT, EPA, FCC, FTC, NSF, and OSTP. Commerce,  DOE, FTC, NSF, and OSTP provided technical comments, which we  incorporated as appropriate. HHS, DHS, DOJ, DOT, EPA, and FCC did  not provide comments.
Why GAO Did This Study

Communities are increasingly deploying IoT devices generally with a goal of improving livability, management, service delivery, or competitiveness. GAO was asked to examine federal support for IoT and the use of IoT in communities. This report describes: (1) the kinds of efforts that selected federal agencies have undertaken to support IoT in communities and (2) how selected communities are using federal funds to deploy IoT projects.
GAO reviewed documents and interviewed officials from 11 federal agencies identified as having a key role in supporting IoT in communities, including agencies that support research or community IoT efforts or that have direct authority over IoT issues. GAO interviewed a non-generalizeable sample of representatives from multiple stakeholder groups in four communities, selected to include a range of community sizes and locations and communities with projects that used federal support. GAO also reviewed relevant literature since 2013 and discussed federal efforts and community challenges with 11 stakeholders from academia and the private sector, selected to reflect a range of perspectives on IoT issues.
GAO requested comments on a draft of this product from 11 federal agencies. Five agencies provided technical comments, which GAO incorporated as appropriate. Six agencies did not provide comments.

What GAO Found

The internet of things (IoT) generally refers to the technologies and devices that allow for the network connection and interaction of a wide array of devices, or “things.” Federal agencies that GAO reviewed are undertaking two kinds of efforts that support IoT in communities:
Broad federal research and oversight of IoT-related technologies and issues: For example, 8 of the 11 agencies GAO reviewed are involved in broad research efforts, often on communication systems—both wired and wireless network systems. In addition, nine agencies have oversight efforts that include providing IoT-related guidance, often on data security and privacy.
More direct efforts to support communities, including funding community IoT projects (see figure) and fostering collaboration among the agencies and communities: For example, DOT recently awarded $40 million in federal funds to a community for a suite of “smart” projects related to improving surface transportation performance, and EPA awarded $40,000 each to two communities to develop strategies for deploying air quality sensors and managing the data collected from them. To foster such collaboration, in July 2016, the White House formed an interagency task force that has developed a draft Smart Cities and Communities Federal Strategic Plan . A final plan will be released in summer of 2017, according to federal officials.
All four of the communities that GAO reviewed are using federal funds in combination with other resources, both financial and non-financial, to plan and deploy IoT projects. For example, one community used the $40 million DOT award to leverage, from community partners, more than $100 million in additional direct and in-kind contributions, such as research or equipment contributions. Communities discussed four main challenges to deploying IoT, including community sectors (e.g., transportation, energy, and public safety) that are siloed and proprietary systems that are not interoperable with one another.