Updated April 2026 · FY2024 USAspending.gov data
Kentucky Federal Spending
KY · Rank #26 of 51
Kentucky accounts for a meaningful but mid-tier share of federal contracting: 33 active contractors and $5.8B in federal obligations, or roughly 1.09% of the national total. The state shows up in specific niches rather than across every category.
Why Kentucky Ranks Where It Does
Mid-tier states like Kentucky usually cluster their federal spending around one or two dominant relationships — most often Department of Defense — rather than spreading it broadly. That concentration means a single base closure, contract recompete, or agency reorganization can move the state's total noticeably. Watch the agency panel for early signals of structural shifts.
For broader context, see the federal spending by state breakdown, which ranks every state and DC against this same dataset, or look at spending by industry to see which categories dominate nationally.
Top Contractors in Kentucky
| Rank | Contractor | Obligations |
|---|---|---|
| #1 | Humana Government Business Inc. | $3.2B |
| #2 | Optum Public Sector Solutions, Inc. | $65.9M |
| #3 | Lockheed Martin Corporation | $55.0M |
| #4 | Mckesson Corporation | $29.4M |
| #5 | The Boeing Company | $28.1M |
| #6 | Electric Boat Corporation | $28.1M |
| #7 | Triwest Healthcare Alliance Corp. | $27.4M |
| #8 | Raytheon Company | $25.3M |
| #9 | Huntington Ingalls Incorporated | $24.4M |
| #10 | Booz Allen Hamilton Inc. | $22.6M |
Federal contracting in Kentucky is heavily concentrated at the top: Humana Government Business Inc. alone accounts for $3.2B (55.6% of state total), with Optum Public Sector Solutions, Inc. a distant second at $65.9M. A single contract recompete can swing the state's headline number.
What the Federal Government Buys in Kentucky
The largest spending category in Kentucky is Defense & Weapons at $2.0B. That category mix tells you what the federal government is buying from Kentucky contractors — services, manufactured goods, research, or construction. The Federal Procurement Data System uses the Product and Service Code (PSC) hierarchy to tag every award; the breakdown shown on this page rolls those PSCs into the major categories.
How These Numbers Are Calculated
Every total on this page is computed from the USAspending.gov award dataset, filtered to recipients with a primary place of performance in Kentucky. Recipient identity is reconciled to the SAM.gov Unique Entity ID, which ties subsidiaries that file separately to a single parent record where the federal data supports it. Industry rollups follow the Product and Service Code hierarchy maintained by the Federal Procurement Data System. Read the full methodology.
Frequently Asked Questions About Kentucky Federal Spending
How much federal contract spending does Kentucky receive?
Kentucky received $5,772,419,615 in federal contract obligations in the most recent fiscal year (FY2024), based on USAspending.gov data. That ranks Kentucky #26 of 51 states (and DC) for federal contract spending.
Who is the biggest federal contractor in Kentucky?
Humana Government Business Inc. is the largest federal contractor based in Kentucky, with $3.2B in obligations. The full top-contractor list is shown above; click any name to open that contractor's profile, including all agencies, categories, and individual awards.
Which federal agencies spend the most in Kentucky?
Department of Defense is the dominant federal customer in Kentucky at $3.2B, followed by Department of Health and Human Services. The agency panel shows the full mix; large states usually show several agencies, while smaller-spending states tend to be dominated by one.
What does the federal government buy in Kentucky?
The biggest spending category in Kentucky is Defense & Weapons at $2.0B. Categories follow the PSC hierarchy from the Federal Procurement Data System and span services, products, research, and construction.
Where does this data come from?
Every figure is sourced from USAspending.gov, the official federal spending database mandated by the DATA Act. Recipient identity is reconciled to SAM.gov Unique Entity ID registrations. Data is public domain and refreshes whenever USAspending.gov publishes a new release.
Source: U.S. federal government, USAspending.gov & SAM.gov. Data is public domain. Cite as: "TaxDollarData, Kentucky federal spending, FY2024. Data: USAspending.gov."
Last updated 2026-04-09 · figures represent federal obligations for FY2024.
For this entity, the underlying data on this page comes from USASpending.gov federal awards data. The breakdown above is the federal record; the paragraphs below add the per-entity context that makes the headline numbers usable for a real decision rather than just a data lookup.
Every number on this page links back to USASpending.gov federal awards data; the methodology page describes the inputs, refresh cadence, and known limitations of the underlying data product.
For readers using this page as a decision input, the related-entity pages elsewhere on the site provide the comparison set. The most useful comparison for this entity is typically a peer within U.S. federal contracts, grants, and awards with similar size, similar exposure, or similar geography — not the national-level summary alone.