A friend I follow on Twitter has written an excellent article regarding Government 2.0 over at Grand Central Political magazine.
An excerpt to entice you:
"As the Democratic National Convention starts in Colorado, it will likely be the most watched in history, due in no small part to media coverage. Now with Generation Y largely eligible to vote, "new media" including bloggers and online video propagandists will be detailing every bit of important news, all the mundane moments, and any juicy bits of gossip as much as the major networks and other more traditional forms of media.
The federal government itself will also be blogging."
I would encourage you to read the full article.