FY2026 federal contract spending: which agencies grew and shrank

Federal contract obligations in fiscal year 2026 against 2025, agency by agency: Homeland Security nearly tripled its contracts, USAID's fell by three quarters, and civilian agencies rose by about a quarter.

The year in one paragraph

Federal agencies obligated $763.6 billion on contracts in fiscal year 2026 (October 2025 to September 2026), against $793.5 billion in fiscal 2025, by USAspending.gov records as of October 16, 2026. That comparison understates 2026: the Department of Defense publishes its contracts about 90 days late, so most of its last quarter, the busiest of the year, has not arrived yet ($388.7 billion so far, against $491.9 billion for all of 2025). Without Defense, civilian agencies obligated $374.9 billion on contracts, up 24% from $301.6 billion.

Homeland Security nearly tripled

The Department of Homeland Security obligated $73.5 billion on contracts, up from $28.4 billion (+158%), the largest increase of any agency. U.S. Customs and Border Protection went from $10.2 billion to $39.2 billion, the Coast Guard from $3.5 billion to $13.6 billion and Immigration and Customs Enforcement from $4.0 billion to $8.9 billion.

At DHS the largest gains went to construction companies: Fisher Sand & Gravel ($13.35 billion, up from $0.93 billion), Barnard Construction ($4.78 billion), Southwest Valley Constructors ($2.68 billion) and Spencer Construction ($2.36 billion), and to Bollinger Shipyards ($2.22 billion, up from $31 million).

Other agencies that grew

Energy: $57.1 billion, up 14% from $50.3 billion.
Veterans Affairs: $84.3 billion, up 8% from $78.3 billion; the largest civilian buyer.
Transportation: $14.9 billion, up 50% from $9.9 billion. The largest gains went to air traffic control suppliers RTX ($0.78 billion), Rohde & Schwarz ($0.65 billion) and Frequentis ($0.63 billion), and to TOTE Services ($0.78 billion).
General Services Administration: $29.1 billion, up 20%.
Health and Human Services: $30.0 billion, up 12%.
Justice: $10.5 billion, up 19%.

Agencies that shrank

USAID: $1.0 billion, down 76% from $4.2 billion.
Treasury: $7.0 billion, down 18% from $8.6 billion.
Environmental Protection Agency: $1.3 billion, down 25% from $1.7 billion.
Office of Personnel Management: $95 million, down 52% from $199 million.
National Science Foundation: $622 million, down 12% from $711 million.
Small Business Administration: more money taken back than committed (−$30 million, against $111 million in 2025).
State: $9.7 billion, down 2%; NASA: $21.5 billion, flat.

What it means if you sell to the government

Follow the money to the agencies that grew: border infrastructure, the Coast Guard's fleet, air traffic control and VA health care are where new work is being bought.
Shrinking agencies still buy, but expect fewer new starts and more cancelled or descoped work.
Wait for Defense: its fiscal 2026 contracts will keep arriving through December, so judge Defense trends then.

How these numbers were counted

Amounts are obligations (money committed on contracts) by awarding agency and fiscal year, from USAspending.gov prime award transactions as loaded on October 16, 2026. Obligations include downward adjustments, so an agency can show a negative year. Figures will change as agencies correct and add records.

On SpendQuery

Official sources

Questions people ask

How much did the federal government spend on contracts in fiscal year 2026?

$763.6 billion in obligations by mid-October 2026, with Defense contracts still arriving (Defense publishes about 90 days late); fiscal 2025's total was $793.5 billion. Civilian agencies alone obligated $374.9 billion, up 24%.

Which agency's contract spending grew the most in 2026?

The Department of Homeland Security: $73.5 billion in fiscal 2026 against $28.4 billion in 2025, driven by U.S. Customs and Border Protection, the Coast Guard and ICE.

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Updated 2026-10-18. General information, not legal advice; the solicitation and the FAR govern each purchase.