Federal Procurement Spending Hits Record $750B: What It Means for Suppliers
The U.S. federal government spent over $750 billion on contracts in fiscal year 2025, marking a new record driven by defense modernization, infrastructure investments, and technology upgrades across civilian agencies.
Where the Money Is Going
Defense-related procurement continues to dominate, accounting for roughly 60% of total contract spending. However, civilian agency spending is growing faster, particularly in IT modernization, cybersecurity, and infrastructure categories.
Small Business Set-Asides Growing
The government continues to increase its commitment to small business procurement, with set-aside contracts growing 8% year-over-year. This represents a significant opportunity for small and mid-sized companies looking to enter the federal market.
How to Track Opportunities
Tools like SAM.gov and USASpending.gov provide free access to federal procurement data. Procurement professionals can use these platforms to identify upcoming opportunities, track agency spending patterns, and research competitor contract wins.
Frequently Asked Questions
- How much does the U.S. government spend on procurement?
- The U.S. federal government spent over $750 billion on contracts in fiscal year 2025, with approximately 60% going to defense-related procurement.
- How can I find federal procurement opportunities?
- SAM.gov provides free access to all published federal procurement opportunities, and USASpending.gov allows you to track agency spending patterns and contract awards.
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