BGOV OnPoint: Nondefense Contract Spending Fell in Fiscal 2025

Oct. 14, 2025, 9:30 AM UTC

Nondefense agency annual contract obligations shrank for the first time in 10 years, according to Bloomberg Government analysis.

Procurement for agencies other than the Pentagon totaled $277.2 billion in fiscal 2025. The federal government operated under stopgap spending measures for the full fiscal year.

That dip is tied to a third-quarter plunge to $63 billion. Amid active contract terminations and ongoing policy shifts, agencies reported a combined 25% downturn in third-quarter aggregate obligations but competed with fiscal 2024 levels in the three other quarters.

Fourth-quarter procurement was back up to $103.6 billion, but still down about $550 million year over ...

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