Forecasting Federal Spending – Where the Money’s Going in 2025

The federal government remains the largest buyer of goods and services in the world. With over $6 trillion in annual budgets, strategic contractors who understand spending trends gain the competitive edge. For new and existing businesses aiming to break into—or expand within—the federal market, 2025 offers significant opportunity. But knowing where and how to look is essential.

Why It Matters

At GovPointe, our analysts specialize in helping companies align their capabilities with upcoming federal opportunities. As spending shifts, so do priorities—and that’s where targeted strategy comes into play.

Federal Spending Trends & Projections for 2025

Based on budget proposals and agency forecasts, these are the key insights:

• Defense & Cybersecurity: With ongoing geopolitical tensions, DoD spending is expected to exceed $850 billion. Contracts will focus on cyber infrastructure, AI, and advanced logistics.



• Infrastructure & Transportation: Continued implementation of the Bipartisan Infrastructure Law will direct funds to roads, bridges, airports, and public transit.



• Clean Energy & Sustainability: Federal agencies will prioritize contractors supporting net-zero initiatives, renewable energy, and sustainable development.



• Healthcare & Veterans Services: Increased funding for the VA and HHS means new contracts in medical tech, telehealth, and staffing.



• Technology & IT Modernization: Expect strong IT-related spending across all civilian agencies due to digital transformation mandates.

Key Agencies to Watch

• Department of Defense (DoD)
  Still the largest source of federal contracting opportunities, especially for logistics, manufacturing, and IT service providers.


• Department of Transportation (DOT)
  Managing over $142 billion in infrastructure funding in 2025.


• Department of Energy (DOE)
  Expanding clean energy investments through programs like ARPA-E and the Loan Programs Office.


• Department of Veterans Affairs (VA)
  Boosted funding for medical facilities, services, and healthcare IT.


• General Services Administration (GSA)
  Expect continued emphasis on procurement reform, digitization, and small business participation.

Shifting Strategy for Contractors

Simply registering on SAM.gov isn’t enough. Winning contracts in 2025 will require:

• Market Intelligence:
  Use tools like USAspending.gov to track real-time data and identify trending agencies and NAICS codes.



• Capability Alignment:
  Tailor your capability statement to match forecasted demand in targeted sectors.



• Strategic Certifications:
  8(a), HUBZone, WOSB, and SDVOSB certifications continue to unlock set-aside opportunities.



• Bid Smarter, Not More:
  Focus efforts on contracts aligned with your strengths, rather than spreading resources across mismatched bids.

How GovPointe Helps

We don’t just help you get registered—we help you get results. Our analysts interpret federal spending forecasts and pair them with your company’s capabilities to identify real opportunities.

From intelligence briefings to proposal strategies, we build your federal footprint the smart way.

Let us map the contracts to your capabilities—talk with our analysts.

Explore current opportunities now at SAM.gov and USAspending.gov, or contact GovPointe to develop your custom roadmap into the federal marketplace.