Federal Contracting by — Fiscal Year

FY 2026 is the current federal fiscal year with an estimated $6.9 trillion in total federal spending. Contracting priorities include continued CMMC rollout across the defense industrial base, AI and autonomous systems development, and modernization of aging federal IT infrastructure under the Technology Modernization Fund.

FY 2025 saw approximately $6.7 trillion in total federal spending. Major contracting themes included the full implementation of CMMC 2.0 requirements in DoD contracts, the acceleration of cloud migration under FedRAMP, and continued infrastructure spending under the Bipartisan Infrastructure Law.

FY 2024 featured approximately $6.5 trillion in total federal spending. The year was marked by significant infrastructure investment as Bipartisan Infrastructure Law projects reached full execution phase, along with CHIPS Act semiconductor manufacturing facility construction awards and major defense modernization programs.

FY 2023 saw approximately $6.3 trillion in total federal spending. Federal contract spending exceeded $750 billion for the first time. The year featured major awards under the CHIPS and Science Act, continued Inflation Reduction Act implementation, and the beginning of large-scale Bipartisan Infrastructure Law construction projects.

FY 2022 featured approximately $6.0 trillion in total federal spending as pandemic-era supplemental spending began to wind down. The Bipartisan Infrastructure Law (enacted November 2021) drove initial planning and design contract awards across transportation, broadband, clean energy, and water infrastructure.

FY 2021 saw approximately $6.8 trillion in total federal spending, driven by continued COVID-19 pandemic response including the American Rescue Plan Act ($1.9 trillion). Federal contracting prioritized vaccine distribution logistics, pandemic testing infrastructure, and the transition to hybrid federal work environments.

FY 2020 featured approximately $6.6 trillion in total federal spending, an unprecedented level driven by the CARES Act ($2.2 trillion) and other COVID-19 emergency appropriations. Federal contracting underwent rapid transformation as agencies executed emergency procurements for PPE, ventilators, testing supplies, and remote work technology.

FY 2019 saw approximately $4.4 trillion in total federal spending. The year began with a partial government shutdown (December 2018 - January 2019) that delayed procurement actions across multiple agencies. Federal contract spending reached approximately $594 billion, driven by defense modernization and continued IT cloudification.

FY 2018 featured approximately $4.1 trillion in total federal spending under the Bipartisan Budget Act of 2018, which raised spending caps and ended a period of sequestration-level defense budgets. Federal contract spending rose to approximately $559 billion as defense and civilian agencies accelerated procurement after years of constrained budgets.

FY 2017 saw approximately $4.0 trillion in total federal spending. Federal contract spending was approximately $508 billion as the government continued operating under Budget Control Act spending caps. The year marked a transition in procurement priorities toward rebuilding military readiness and border security infrastructure.

FY 2016 featured approximately $3.9 trillion in total federal spending. Federal contract spending was approximately $472 billion. The year saw continued emphasis on IT modernization through the Federal Information Technology Acquisition Reform Act (FITARA) and growing investment in cybersecurity following the OPM data breach.

FY 2015 saw approximately $3.7 trillion in total federal spending. Federal contract spending reached approximately $439 billion, the lowest level since 2008 as Budget Control Act sequestration continued to constrain procurement budgets across defense and civilian agencies.