Defense Contracts’ 9% Rise in FY25 Fueled New Government Record

Jan. 9, 2026, 10:15 AM UTC

A new analysis of year-end procurement data by Bloomberg Government shows federal agencies renewed an upward spending trajectory in fiscal 2025, with 4.8% year-over-year growth in total unclassified contract obligations to a record topping $808 billion.

Defense Department procurement hit $521 billion, a new high for the Pentagon that boosted the governmentwide aggregate despite a dip in civilian agency spending to $287 billion in fiscal 2025. DOD contracting data became available early this month after the Pentagon’s 90-day reporting delay for national security reasons.

The Pentagon’s surge was enough to account for 64.5% of all agencies’ procurement dollars. That was ...

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