Seems like they should run something federated on their own rather than just jumping to the next commercial version that's inevitably going to enshitify itself at some point.
The government has been conditioned to give away control so much due to decades of corporate lobbying, spectacular they make a jump probably for social reasons without understanding the technological and economic underlying drivers. I'm sure a $500/HR big 4 consultant will provide them a slide on it in 20 years.
ATProto is almost there with the only missing piece being the AppView. I'm not sure if BlueSky is hesitant about releasing theirs as open source, but I don't think there are any barriers to a third party implementing one.