FY26 Federal Buying Snapshot
FEDERAL CONTRACT SPENDING DATA · FY26 YTD
Where Federal Buying is Moving as FY26 Closes, and What Contractors Should Watch Heading Into FY27
Federal contract spending remains strong, opportunity is concentrated in specific markets and vehicles, and agency buying patterns point to where contractors should focus next.
Published by Procurement Sciences
Data verified as of September 2026
Data verified as of September 2026
Source: HigherGov Market Analysis, Federal Contract Obligations
Data through FY26 YTD · Updated August 2026
On this page
Obligations by fiscal year
Federal contract spending remains at a historically high level
The pattern across FY21 through FY25 shows sustained growth rather than a single anomalous year: obligations climbed from $639B to a record $785.6B, up nearly 23% over five years. That climb wasn't perfectly linear. FY23's jump to $756B marked the sharpest single-year increase in the series, and FY24's slight pullback to $749B suggests some of that growth was absorbed rather than compounding indefinitely. FY26's year-to-date figure of $621.3B is not yet comparable to FY25's completed total, since a YTD figure captures spending through a specific point in the fiscal year, not the full 12 months. The real signal will come from how obligations accumulate through the rest of FY26, not from a premature comparison against last year's final number.
What this means for contractors
FY25 reached a record $785.6B in obligations, up nearly 23% from FY21. FY26 has already reached $621.3B YTD, with the fiscal year still in progress.
Top NAICS categories by obligations (FY26 YTD)
Where FY26 contract dollars are concentrating by NAICS
Federal demand spans a wide range of industries in FY26, from healthcare and construction to defense manufacturing, engineering, R&D, and IT. For contractors, the NAICS view provides a quick way to benchmark activity in the markets most relevant to their capabilities.
What this means for contractors
Find your market. Use your primary NAICS codes to see where federal dollars are flowing today, then look beyond historical obligations to identify the opportunities, recompetes, and agency demand shaping FY27.
Professional services & IT PSCs by obligations (FY26 YTD)
What federal agencies are buying across professional services and IT
Product and Service Codes provide another view into federal demand by showing what agencies are actually buying. Across selected professional services, IT, and R&D categories, engineering and technical support, professional services, and application development represent billions in FY26 YTD obligations.
What this means for contractors
Know what agencies buy, not just where your company fits. Tracking the PSCs associated with your capabilities can help uncover relevant spending patterns and opportunities that may not be obvious from NAICS alone.
Top contract vehicles by obligations (FY26 YTD)
Two contract vehicles account for roughly one-third of vehicle-based obligations
MAS and the 2025 Southwest Border Construction MAC account for roughly one-third of vehicle-based obligations in this analysis. Alliant II, SEWP V, MDEO 2025, and SeaPort-NxG each represent billions more, reinforcing the importance of understanding which vehicles agencies use to buy in your market.
What this means for contractors
Vehicle access matters. Understanding which vehicles agencies use in your market can help you identify where opportunities may emerge and where access could shape your ability to compete.
Looking ahead: FY27
What to watch as FY27 begins
The findings above point to a federal market that remains large and distributed across industries, products and services, and contract vehicles. As FY27 begins, four signals are worth prioritizing:
Follow the markets with momentum
Track NAICS, PSC, and agency trends to focus where dollars are moving.
Watch recompetes before they hit
Expiring contracts signal upcoming opportunity: here's how to track them before they hit.
Monitor vehicles agencies use
Buying through vehicles provides early signals of where procurement activity will flow: start here if vehicles are new to you.
Connect data to decisions
Combine opportunities, awards, forecasts, and intelligence to build a stronger pipeline.
Frequently Asked Questions
How much has the federal government obligated in contracts for FY26?
$621.3B through FY26 year-to-date, based on HigherGov's analysis of federal contract obligations data. This figure is year-to-date and should not be compared directly against completed fiscal-year totals like FY25's $785.6B.
Which industries are seeing the most federal contract activity in FY26?
Among named NAICS categories in this analysis, Direct Health & Medical Insurance Carriers (524114), Commercial & Institutional Building Construction (236220), and Aircraft Manufacturing (336411) lead FY26 YTD obligations, each with more than $42 billion in activity.
Which contract vehicles have the most FY26 YTD obligations?
Multiple Award Schedule (MAS) leads the vehicle activity in this analysis at $29.3B in FY26 YTD obligations, followed by the 2025 Southwest Border Construction MAC at $25.8B. Together, the two account for roughly one-third of the vehicle-based obligations represented in this analysis.
