Pentagon Spending Surge in Fiscal 2025 Set Contracting Record

Jan. 15, 2026, 10:05 AM UTC

In a year with a strong White House message of cost-cutting, spending by the Pentagon rose 9.3% to a new record.

A new year-end analysis of fiscal 2025 contract spending by Bloomberg Government shows the Defense Department’s unclassified contract obligations climbed to $521 billion in fiscal 2025.

The boost in DOD procurement was enough to drive a budget constraints-defying 4.8% increase in governmentwide spending as civilian agencies pulled back and corporate giants tightened their grip on the defense market.

President Donald Trump took office almost three weeks into the second quarter of fiscal 2025, bringing in ...

Learn more about Bloomberg Government or Log In to keep reading:

See Breaking News in Context

Providing news, analysis, data and opportunity insights.

Already a subscriber?

Log in to keep reading or access research tools and resources.