Federal Spending by Industry
How the federal government distributes $525.3B in contract spending across 11 major industry categories in FY2024.
Other Services
General services including facility management, administrative support, food services, security, and miscellaneous government operations.
Defense & Weapons
Military equipment, weapons systems, aircraft, ships, missiles, and defense-related manufacturing and maintenance contracts.
Research & Development
Scientific research, technology development, laboratory operations, testing, and evaluation for federal agencies and military programs.
Professional Services
Management consulting, advisory services, program management, staffing, logistics support, and technical assistance to government agencies.
Construction
Building construction, infrastructure development, facility maintenance, military base construction, and environmental remediation projects.
IT & Software
Information technology services, software development, cybersecurity, cloud computing, systems integration, and digital modernization for federal agencies.
Transportation & Logistics
Shipping, freight, fleet management, supply chain services, military logistics, and transportation infrastructure.
Healthcare & Medical
Healthcare services, medical supplies, pharmaceuticals, TRICARE administration, VA healthcare support, and public health services.
Telecommunications
Communications systems, satellite services, network infrastructure, secure communications, and broadband deployment for federal agencies.
Energy
Energy production, nuclear facility management, renewable energy projects, petroleum products, and utility services for government facilities.
Environmental Services
Environmental cleanup, hazardous waste management, pollution remediation, environmental monitoring, and conservation services.
Frequently Asked Questions
What does the federal government spend the most on?
The largest category of federal contract spending is Other Services at $2102.6B, followed by Defense & Weapons at $520.3B. Defense-related spending dominates federal contracting.
How much does the government spend on IT contracts?
The federal government spent $179,725,707,113 on IT and software contracts in FY2024, making it one of the fastest-growing contract categories as agencies modernize legacy systems.
Where does federal contract data come from?
All data comes from USASpending.gov, the official source mandated by the DATA Act. Industry categories are based on Product and Service Code (PSC) classifications from the Federal Procurement Data System (FPDS).
About This Data
Industry categories are based on Product and Service Code (PSC) classifications from the Federal Procurement Data System. All spending data from USASpending.gov. See our methodology.