I'm sure it means testing in general, not just U.S. state tests. They are using the word "standardized" in the broadest sense, as in, any kind of test which has to be taken in a standardized, controlled way, often across many locations, especially without access to the internet or communications tools.
For example, I work at a medical school where we do very frequent testing on what you would call "standardized" USMLE (US Medical Licensing Exam) modules, and we require the students to install an app on their computers that "locks down" the computer while logged in to the testing portal. If they close, resize the window, kill the process, or do anything else fishy, the test just closes up and the proctor at the front of the room is alerted (and they can come assess whether it was just a mistake or an actual case of cheating).
Many students have asked if they could run the app on their iPads, and they never have been able to. I don't know what this update entails, but if it allows a system-level temporary lockdown, sort of like a temporary "guided access mode" that can be controlled by a proctor during a test, that would be awesome.