Investing In U.S. Quantum Leadership

Investing In U.S. Quantum Leadership

Executive Summary

Quantum computing presents a revolutionary leap in computing technology. Gen Z, with their unique digital fluency and innovative mindset, will play a pivotal role in advancing quantum computing and driving future breakthroughs. This proficiency is anticipated to amplify their digital economic impact, with Gen Z’s income forecasted to rise from $440 billion to over $3.5 trillion by 2030, underscoring the increasing significance of quantum technology. Quantum’s accelerated pace is on track to transform cybersecurity, artificial intelligence, healthcare, and defense. However, the global race for superiority has the United States trailing behind its biggest competitor: China. Bipartisan efforts in Congress, including the National Quantum Initiative Reauthorization Act and the DOE Quantum Leadership Act of 2025, highlight the federal government’s growing commitment to strengthening U.S. quantum capabilities. These policies emphasize public-private partnerships, secure quantum supply chains, and investment in workforce development. Without immediate action, the U.S. risks falling even farther behind in the global quantum race. Strategic federal investments and policies are essential to ensure Gen Z is equipped to shape and lead in the future of quantum innovation.

Background

Quantum computers use quantum bits (qubits) that can exist in multiple states simultaneously, allowing them to perform much faster than traditional computers, which use binary bits limited to 0s and 1s. This lets quantum computers solve complex problems, like discovering new medicines or creating more accurate climate models, at record speeds. For example, Google demonstrated that their quantum processor could complete a particular computation in just 200 seconds, a task that would require a classical supercomputer an astonishing 10,000 years to accomplish. The National Quantum Initiative (NQI) Act of 2018 was a pivotal policy that kickstarted U.S. federal investment in quantum research, allocating $1.2 billion over five years. Since its inception, the National Quantum Initiative’s strategic investments have advanced quantum information science, networking, and sensing technologies, developed workforce training initiatives, fostered international cooperation, and provided critical infrastructure enhancements. Although funding for the NQI expired at the end of 2023, Congress has directed attention to quantum computing innovation through reauthorization efforts and various bill proposals. Bipartisan legislation in the 118th Congress sought to expand federal investments in quantum technologies, such as through the National Quantum Initiative Reauthorization Act and the DOE Quantum Leadership Act of 2024. The NQI reauthorization bill aimed to secure an additional $1.8 billion for the advancement of quantum technologies, while the DOE Quantum Leadership Act proposed $2.5 billion over five years to support the Department of Energy (DOE) quantum R&D, strengthen workforce pipelines, and address supply chain challenges. Although both bills did not pass, the level of bipartisan support in both chambers of Congress highlighted the collective prioritization of quantum computing in the legislative branch. Concurrently, global competition has intensified, with states like China, the EU, and Canada significantly increasing their quantum R&D funding. As this global competition rises, public-private partnerships, like DARPA's collaboration with Microsoft and PsiQuantum developing fault-tolerant quantum computers faster than conventional projections, strengthen US competition on the global stage. As 86% of Gen Zers consider technology essential to their lives, this generation is pivotal in building public-private partnerships to shape the future of quantum computing and its integration into various industries.

Challenge

Despite bipartisan momentum, the U.S. faces several challenges in surpassing China’s dominance. China has made significant investments in quantum research and technology, with funding nearly double that of the European Union and triple that of the United States. A lack of sustained funding due to the 2018 NQI expiring at the end of 2023, coupled with stagnant investments, could stall research and applied scientific progress in the US. While computer science continues to gain popularity as an undergraduate major, with 5.9% of the Class of 2025 students pursuing CS degrees compared to 4.8% of the Class of 2024, this rate of growth is insufficient to train the future workforce of the quantum computing age. Additionally, the rapid advancements in quantum computing heighten cybersecurity threats, creating an urgent need to develop quantum-resistant encryption techniques that protect critical infrastructure. Experts estimate that the development of a quantum computer capable of breaking cryptography may be just years away, leaving the U.S. with limited time to prepare for this threat. Addressing these challenges is vital to maintaining the United States' position as a global leader in quantum technologies and ensuring the security and resilience of its digital ecosystem.

Solutions

Policymakers can prioritize expanding quantum federal investments in the 119th Congress by passing the Quantum Sandbox for Near Term Application Act, as well as passing the DOE Quantum Leadership Act of 2025. These federal investments will help transition quantum technologies into operational use, supporting long-term funding for research, infrastructure, and the commercialization of quantum technologies to spur economic growth. Additionally, policymakers must focus on strengthening national cybersecurity by accelerating the development of quantum-resistant encryption technologies to safeguard U.S. digital infrastructure from emerging threats. Another critical priority is to strengthen public-private partnerships, which can drive collaboration between government agencies, academia, and industry to advance quantum research and development. This collaboration is essential for accelerating progress in quantum computing, networking, and security. To ensure Gen Z is equipped for the future job market, workforce development and STEM education must be heavily expanded. This includes increasing federal grants for STEM education in quantum fields to prepare the next generation for high-demand jobs in quantum computing, networking, and cybersecurity. 

Policy Recommendations

Quantum technology will define the future of computing, cybersecurity, and national security. The U.S. must act now to expand investments, secure supply chains, strengthen its workforce, and maintain its competitive edge in the global quantum race. By passing key legislation like the DOE Quantum Leadership Act of 2025, policymakers can ensure sustained funding, accelerate workforce development, and promote responsible innovation in quantum technologies. To ensure the United States does not fall behind in the quantum race, the International Quantum Research Exchange Act must be passed to increase cooperation with close allies. For Gen Z, quantum represents not just an emerging technology but a defining pillar of the future digital economy. ZETA urges lawmakers to prioritize long-term investments, cybersecurity readiness, and public-private partnerships to ensure that the next generation is equipped to lead in quantum innovation.