Q4FY25 Federal IT Spend: Where and How to Engage
As we enter the final stretch of the federal fiscal year, IT vendors and resellers should prepare for a busy final quarter. Federal agencies are working against the clock to obligate FY25 funds—especially those made available only after Congress passed a continuing resolution (CR) in March. At DLT, we’ve analyzed the landscape to help our vendors and partners navigate this critical period with precision.
Last year around this same time, federal agencies had obligated around $130 billion in IT funding through the end of FY24, with top priorities spanning cloud adoption, AI integration, zero trust cybersecurity, digital service delivery and supply chain modernization. Cloud stood out as the backbone for modernization efforts during that time—especially with initiatives like JWCC at DoD and high-impact service provider (HISP) rollouts across civilian agencies. AI saw exponential adoption in service delivery and fraud prevention, while zero trust remained a mainstay in cybersecurity conversations.
That momentum continues now in late FY25. The March 2025 CR gave agencies just six months until this September to obligate FY25 dollars, including approximately $137B for IT. That reality, combined with the historic trend of September spending equaling nearly 2 months’ worth alone, signals a busy Q4. The most recent CR gave the DoD a roughly $6B increase, while civilian agencies experienced a $13B haircut from the allocations. Still, the spending pressure remains, particularly to justify future-year requests across some agencies of note below.
Q4FY25 Agencies of Focus
DoD is advancing a full-spectrum IT agenda: cloud modernization, software development, cyber defense and AI integration. Cybersecurity, including opportunities in zero trust architecture, ICAM, encryption and CMMC-related needs remain top priorities.
The Department of Energy is focused on data modernization, cyber resilience and AI-ready infrastructure. Vendors and partners should target opportunities focusing on secure data integration, cloud-based governance and analytics capabilities.
Commerce has been investing in quantum tech, AI standards, NIST cybersecurity initiatives and USPTO modernization. DHS’s FY25 budget request supported CISA-led cybersecurity expansion, border tech modernization and a newly established AI office. Opportunities are available for IT companies specializing in security analytics, infrastructure resilience and responsible AI solutions.
VA is continuing its push for cloud-based EHR modernization, expanded telehealth and stronger cyber safeguards. Also in demand: workforce enablement tools to offset reductions in force. Resellers and vendors can find traction with secure infrastructure, endpoint protection and credentialing platforms.
HHS is focused on data interoperability, cloud migration and disease surveillance analytics. Solutions that support secure data flows and intelligent automation will resonate, especially those tailored to beneficiary experience.
DOI is fast-tracking GIS and data automation initiatives, particularly at NPS, USGS and BLM. Treasury is prioritizing fraud analytics, identity management and CX modernization—but faces IRS rescissions that favor operational continuity over long-term transformation. Lastly, SSA has historically spent nearly half its annual budget in Q4, making it a prime target for automation and IT-as-a-force-multiplier messaging.
New Policies and Procedures
The Trump administration’s early moves—especially the DOGE cost-cutting framework, the FAR overhaul and GSA’s OneGov Strategy—all carry implications for how IT will be procured and prioritized in Q4 and well into FY26:
- DOGE: Agencies will be keyed in on solutions that reduce labor costs and streamline workflows. Emphasize automation, ease of use and mission impact.
- FAR Reform: IT companies should track clause-level changes as the FAR Council publishes revisions to improve clarity and compliance.
- GSA Consolidation: With GSA positioning itself as the executive agent for federal IT buying, expect increased emphasis on standard pricing, OEM access and direct-to-agency models—especially through GSA MAS.
For Q4 especially, agencies will favor vendors that can move quickly. Ensure all documentation is in place and that contract vehicles are active and accessible. Q4 is not the time to go dark. Maintain contact with program offices and be responsive to fast-turnaround requests. Finally, focus on demonstrating cost-efficiency, interoperability and alignment to agency-specific mission needs—not just product features.
Q4 remains the federal market’s busiest and most lucrative quarter. Leverage DLT: Our team can help accelerate procurement, connect you with schedules and streamline last-mile buying.
To get more TD SYNNEX Public Sector Market Insight content, please visit our Market Intelligence microsite.
About the Author:
Susanna Patten is a senior manager on the TD SYNNEX Public Sector Market Insights team covering tech trends across the Public Sector. Susanna has over 15 years of experience in public sector IT procurement. Her responsibilities at TD SYNNEX Public Sector include driving market intelligence asset production, ensuring the quality and relevance of deliverables from the Market Insights team, and aligning these insights with sales opportunities.
Related Blog Posts
Cybersecurity, Federal Government, Market Intelligence, Technology
The DoD is rolling out aggressive updates to its supply chain cybersecurity framework. If you sell software, services or infrastructure into the Defense Industrial Base (DIB), expect tighter requirements, faster timelines and zero tolerance for compliance gaps. These changes affect your ability to win and keep DoD contracts—especially with new programs like:
Toan Le
Federal Government, Market Intelligence, Technology
The Department of Veterans Affairs’ (VA) Office of Inspector General (OIG) released a report on July 1, 2025 announcing it found VA procured IT systems which failed to comply with legally-required accessibility standards. Specifically, of the 30 “bedrock and critical” IT systems audited by OIG as part of its report, the inspector general found only four systems that complied with Section 508 of the Rehabilitation Act.
Gabriel Zighelboim
Market Intelligence
Since the Department of Veterans Affairs (VA) launched its most recent attempt to modernize its electronic health record (EHR) system in 2020, the initiative has been plagued with numerous setbacks and budget overruns. Given the issues faced, lawmakers recently introduced a new discussion draft of legislation that would increase oversight of the VA’s efforts.
Gabriel Zighelboim
AI, Cybersecurity, Federal Government, Market Intelligence
In early June, President Trump released an Executive Order designed to modify sections of Orders 13694 and 14144 previously released by former administrations and “strengthen the nation’s cybersecurity by focusing on critical protections against foreign cyber threats and enhancing secure technology practices.” We’ll look at the latest provisions and implications therein specifically to software, quantum and AI development.
Susanna Patten
AI, Cybersecurity, Data, Federal Government, Market Intelligence
The Samosa Act, a bipartisan piece of legislation which passed the House in December 2024, has been reintroduced in the senate after advancing through the Senate Homeland Security and Governmental Affairs Committee in May 2023 but failing to reach the Senate floor for a final vote.
Yvonne Maffia
AI, Cybersecurity, Data, Market Intelligence
The 2025 fiscal year-end is right around the corner for 46 states, which means that it’s time to take advantage of those end-of-year opportunities before they are gone. SLED decision-makers are already looking ahead to next year’s budget process and are working to identify the most pressing technology policy and priority areas that will shape future downstream requirements.
Yvonne Maffia
AI, Cloud, Market Intelligence
There have been big changes to federal technology acquisition in the initial months of the Trump administration to streamline procurement and increase competition. In line with these efforts, a bipartisan group of lawmakers, including Senators Elizabeth Warren and Eric Schmitt, introduced a bill to combat market concentration for artificial intelligence (AI) and cloud capabilities in the Department of Defense (DOD).
Nikki Hamlin
Federal Government, Market Intelligence, Technology
In the administration’s first 100 days in office, multiple executive orders (EO) were signed to update federal procurement. Several initiatives released across the federal market include the OneGov Strategy, procurement consolidation and the Army Transformation Initiative.
Nikki Hamlin
Market Intelligence, Member Spotlight
While some people may view curiosity as a personality trait, Susanna Patten sees it as an important strategic asset. In her role as Senior Manager, Market Intelligence at TD SYNNEX Public Sector, she goes beyond analyzing numbers; she uncovers the narrative behind them. By approaching data with a storytelling mindset, she is able to turn information into insight, and insight into impact.
Julie Morris
Federal Government, Market Intelligence, Technology
On Thursday April 30th, Defense Secretary Pete Hegseth released a memo for the U.S. Army to undergo a “comprehensive transformation”.
Nikki Hamlin
Big Data, Cybersecurity, Market Intelligence, Technology
The 2025 National Association of State Chief Information Officers (NASCIO) Midyear Conference took place in Philadelphia, PA where state technology leaders shared insights into their top technology priorities for this year. Some of the key focus areas included AI with emphasis on generative AI, data management, governance and quality and cybersecurity and risk management.
Yvonne Maffia
Acquisition, GSA, Market Intelligence
In the last week, the General Services Administration (GSA) officially launched the OneGov Strategy — a bold, long-term initiative to modernize the way agencies purchase goods and services, starting with IT.In simple terms: GSA wants to move away from agencies buying software in silos and instead act like one large, coordinated customer. That means better pricing, stronger security and a more efficient process, according to the agency.So what’s changing, and what does it mean for IT resellers and vendors in the public sector?
Susanna Patten
Federal Government, Infrastructure, Market Intelligence, Technology
The White House recently introduced a major change in how the federal government plans to procure goods and services in its ongoing effort to eliminate waste, fraud and abuse. In an Executive Order published on March 20, 2025, it calls for all federal procurement to consolidate under General Services Administration (GSA) management. This essentially centralizes all federal agencies’ purchasing of technology products and services to one agency.
Toan Le
Cloud, Cybersecurity, Education, Market Intelligence, Technology
This year, higher education is undergoing a transformative shift and education institutions must now keep pace with the expectations of the modern world. Emerging and innovative technology is at the forefront of this transformation, with a focus on boosting flexibility, expanding access to student services and enhancing the individualized student experience with more personalized learning options.
Yvonne Maffia
Cybersecurity, Market Intelligence
To enhance federal cybersecurity, Rep. Nancy Mace, R-S. Carolina, introduced the Federal Contractor Cybersecurity Vulnerability Reduction Act of 2025 (H.R. 872) on January 31, 2025. A similar bill introduced the previous year stalled in the Senate. This bill aims to close a critical gap in federal cybersecurity standards by ensuring that all federal contractors implement a vulnerability disclosure policy consistent with the National Institute of Standards and Technology (NIST) guidelines. Shontel Brown, D-Ohio, cosponsors the bill.
Toan Le
Cybersecurity, Federal Government, IT Infrastructure, Market Intelligence, Technology
In the first week of his administration, President Trump issued the “Removing Barriers to American Leadership in Artificial Intelligence” executive order (EO).
Susanna Patten
Cybersecurity, Market Intelligence, Technology
On April 3, 2025, the Cybersecurity Infrastructure Security Agency released a joint cybersecurity advisory alongside the National Security Agency, Federal Bureau of Investigations, Australian Signals Directorate’s Australian Cyber Security Centre, Canadian Centre for Cyber Security and New Zealand National Cyber Security Centre on a cyberattack technique known as “fast flux.” In a cyberattack using fast flux, cyber attackers rapidly change Domain Name System (DNS) records to obscure the locations of malicious servers and create resilient command and control (C2) infrastructure, thereb
Gabriel Zighelboim
Cloud Computing, Cybersecurity, Data, Federal Government, IT Infrastructure, Market Intelligence, Technology
In March 2025, the Defense Information Systems Agency (DISA) released its FY25-FY27 data strategy. The strategy consists of three lines of effort (LOE) and follows DISA’s Data Strategy Implementation Plan for FY 2022-2024. IT Companies interested in contracting with DISA should be aware of the data strategy as the strategy will influence DISA’s IT procurement decisions over the next two years.
Gabriel Zighelboim
Market Intelligence, Zero Trust
Workforce Updates and ImplicationsLast month, I discussed workforce reduction as it began to play out across agencies. Since then, we’ve seen an acceleration of additional cuts, as departments have been tasked with providing the White House their intended comprehensive plans for a reduction in force by the week ending March 14, while further federal guidance has more recently directed the Department of Education and VA to lay off additional personnel as well.
Susanna Patten
AI, Big Data, Cybersecurity, Data and Analytics, Federal Government, Market Intelligence
In 2025, SLED government technology is undergoing a significant transformation, focusing on modernization, efficiency and improved service delivery. Emerging and innovative technology is at the forefront of this transformation, with AI leading the charge. AI’s influence on government operations is undeniable; whether it’s public safety, health, or education, AI is shaping government operations across all verticals.
Yvonne Maffia
Cybersecurity, Market Intelligence, State & Local Government
The State Risk and Authorization Management Program, also known as StateRAMP, is slated to rebrand itself to “GovRAMP” later this year to more accurately reflect the entire scope of the nonprofit’s mission and support the “whole-of-state” approach to cybersecurity.
Yvonne Maffia
AI, Cybersecurity, Market Intelligence
The Army is moving fast to stay ahead in the digital battlefield. To make this happen, it is driving modernization initiatives to boost operational effectiveness and strengthen national security with a comprehensive IT modernization strategy. If you're in IT sales, knowing what the Army is focusing on can help you tailor your solutions to their needs and effectively establish a trusting partnership in the long run. Let's examine the top five IT modernization initiatives that are shaping the Army's 2025 vision and see how your tech solutions can help.
Toan Le
Federal Government, Market Intelligence
We’re now a month into the Trump Administration, and one prevailing theme we’ve seen take hold is that of workforce reduction, in effort according to officials, to maximize long-term efficiency and align to the new Administration’s priorities. For more on the initially announced fed-wide reductions, see my previous blog. The DoD has recently noted it is aiming to reduce its civilian workforce by 5 to 8 percent, including 5,400 probationary defense employee lay-offs.
Susanna Patten
Big Data, Big Data & Analytics, Cybersecurity, Market Intelligence, State & Local Government, Technology
The Center for Digital Government’s 2025 Beyond the Beltway Market Briefing event took place in Mclean, VA last week where state and local government leaders shared insights into top technology priorities for 2025.Some of the key topics of discussion were the 2025 state and local market outlook, the potential impact of the new administration on government technology, emerging technologies such as AI, the foundational role of data, the evolving cybersecurity landscape and modernization and the customer experience.
Yvonne Maffia
Federal Government, Market Intelligence
Federal agencies across all areas of government have been contemplating workforce challenges for several years now. Prior to 2025, concerns for federal employees chiefly included maintaining an appropriate number of personnel with many aging out and retiring from the workforce, in addition to obtaining and retaining new talent that fit the ever-increasing technological needs of advanced and emerging IT given the competitive salary requirements for some of the field’s best and brightest.
Susanna Patten
IT Perspective, Market Intelligence, State & Local Government, Technology
Numerous cities in the United States struggle with wastewater issues. Many cities’ systems are designed to accommodate smaller populations, and historical rainfall patterns are increasingly prone to causing overflows – where wastewater spills into drinking water sources, streets and homes. And many cities utilize mostly combined wastewater systems where wastewater and rainwater both drain through the same infrastructure, creating increased stress on city systems during storms.
Gabriel Zighelboim
Big Data, Cloud, Cybersecurity, Market Intelligence
With any new executive administration, change is inevitable for federal agency priorities. It remains true, however, that departments and agencies consistently rely on IT products and services and historic trends confirm stability in public sector IT spending under both Republican and Democratic administrations. For FY25, much of the spending has already been laid out in the budget and priorities for FY26 are well under way, so you can expect to see little change to agency needs in the very near term.
Gabriel Zighelboim
Cybersecurity, Digital Design, Market Intelligence, State & Local Government
On December 12th, 2024, The National Association of State Chief Information Officers (NASCIO) released its 2025 annual top 10 priorities list identifying the most pressing technology and policy issues that state CIOs are prioritizing for the upcoming year.
Yvonne Maffia
Cybersecurity, IT Infrastructure, Market Intelligence
The final CMMC rule went into effect December 16, 2024.
Toan Le
Cybersecurity, Education, Market Intelligence
This year’s annual EDUCAUSE Conference took place in San Antonio, Texas, where higher education leaders shared key insights into top edtech trends, priorities and challenges shaping the higher education landscape. The 2025 Educause Top 10 priorities list addresses how higher education technology and data leaders can work together to restore trust within the education sector by building competent and caring institutions through collaboration, consistent results and shifting from monolithic systems and processes to more flexible and unified solutions.
Yvonne Maffia
Big Data, Cybersecurity, Market Intelligence, Technology
Hello from DoDIIS in Omaha, Nebraska! TDSYNNEX Public Sector is once again attending, so if you didn’t make it out to the city that invented the Reuben sandwich, we’ve got you covered. The conference kicked off with a heavy focus on several prevailing themes, notably: cybersecurity, deterrence, interoperability, and data centricity. If you read that list and thought AI was missing – fear not – it was included in discussions, but primarily as a vehicle for aiding in the intelligence community’s (IC) top priorities.
Susanna Patten
Cybersecurity, Market Intelligence, State & Local Government, Technology
The 2024 National Association of State Chief Information Officers (NASCIO) Annual Conference took place in New Orleans, Louisiana earlier this month, where state leaders shared key insights into FY25 top technology priorities, challenges and lessons learned. Some of the key focus areas included AI, with emphasis on generative AI (Gen AI) tech, data management, governance, privacy and accessibility, cybersecurity and risk management and digital services and modern government.
Yvonne Maffia
AI, Cybersecurity, Market Intelligence
This month marks the 20th anniversary of the declaration of “Cybersecurity Awareness Month,” originally created by the Department of Homeland Security and the National Cyber Security Alliance in 2004. Since then, we’ve seen vast amounts of change and innovation in the sector. We’ve also seen continually updated legislation, new technology and opportunities for IT companies to penetrate the market as federal agencies continue to watch threats evolve.
Susanna Patten
Federal Fiscal Year End, Federal Government, Market Intelligence, Technology
At this point, anyone keenly watching the budget process every year can tell you the likelihood of a continuing resolution (CR) being passed as opposed to a new budget by Oct 1st is all but guaranteed. CRs act as a temporary stopgap designed to avoid a government shutdown. However, it also locks funding to the previous fiscal year’s level and prevents new projects from getting started. Projects then remain under operations and maintenance until a new budget, with new requirements, is passed.
Susanna Patten
Federal Fiscal Year End, Federal Government, Market Intelligence, Technology
At this point, anyone keenly watching the budget process every year can tell you the likelihood of a continuing resolution (CR) being passed as opposed to a new budget by Oct 1st is all but guaranteed. CRs act as a temporary stopgap designed to avoid a government shutdown. However, it also locks funding to the previous fiscal year’s level and prevents new projects from getting started. Projects then remain under operations and maintenance until a new budget, with new requirements, is passed.
Susanna Patten
Cybersecurity, Federal Government, Market Intelligence, Technology
The US military information network comprises over 15,000 classified and unclassified networks facilitating information exchange for service members worldwide. Known as the Department of Defense Network (DoDIN), it includes devices such as computers, mobile phones, weapons, servers, and data systems consistently serving military personnel at all levels. Data sharing across these devices has been under frequent threats of cyberattacks by adversaries and necessitates keen vigilance by the Defense Information System Agency (DISA) to manage risks and vulnerabilities.
Toan Le
AI, Education, Market Intelligence, State & Local Government
With the increasing prominence of artificial intelligence and machine learning (AI/ML), numerous state governments are creating taskforces on AI to help determine their state’s AI strategy.
Gabriel Zighelboim
Cybersecurity, Federal Government, Market Intelligence
Defending against cyberattacks is an ongoing battle for the Air Force, Army, and Navy, and requires strategic maneuvering and intelligent solutions. An integral part of these solutions has been the collaboration and technical support from the defense industrial base (DIB). Recently, the principal cyber advisors from each branch announced their challenges and priorities geared toward addressing cyber needs.
Toan Le
FAA, Federal Government, Market Intelligence
Given the numerous commercial airline safety incidents in the news within the past few months, it should be no surprise that the Federal Aviation Administration (FAA) and government legislators have taken an interest in improving the safety of US airspace. The FAA is looking into and implementing new solutions to improve airspace safety, and government legislators are funding airspace safety initiatives.
Gabriel Zighelboim
Federal Fiscal Year End, Federal Government, Market Intelligence
You read that title correctly; here we are near the end of another federal fiscal year. If you’re thinking it feels like Congress just passed the fiscal year 2024 (FY24) budget, you’re correct. Half of FY24 was spent in a state of continuing resolutions, with the passage of a final budget a whopping six months into the year, in March 2024. Federal agencies have had effectively half the time they would be allotted in an ideal fiscal year timeframe to spend less, the same, or in some cases more money.
Susanna Patten
Federal Fiscal Year End, Federal Government, Market Intelligence
You read that title correctly; here we are near the end of another federal fiscal year. If you’re thinking it feels like Congress just passed the fiscal year 2024 (FY24) budget, you’re correct. Half of FY24 was spent in a state of continuing resolutions, with the passage of a final budget a whopping six months into the year, in March 2024. Federal agencies have had effectively half the time they would be allotted in an ideal fiscal year timeframe to spend less, the same, or in some cases more money.
Susanna Patten
Federal Government, Market Intelligence, Technology
In a contest this year of “Most Popular IT Market Trends” it’s highly likely artificial intelligence (AI) would win first place. Federal agencies have released troves of related guidance in the past year, including an executive order, Office of Management and Budget (OMB) memos, National Institute of Standards and Technology (NIST) protocols, and the Department of Defense’ (DoD) AI Strategy. So much of the discussion around AI up until very recently though has been just that: discussion.
Susanna Patten
Cybersecurity, Market Intelligence, State & Local Government
The 2024 fiscal year-end is coming to a close for 46 states, which means that it’s time to put on those running shoes and take advantage of any last minute, end-of-year opportunities. State, local and education (SLED) organizations are already game planning where to funnel resources and dollars in next year’s budget, highlighting the top priorities and challenges that will shape future downstream requirements.Key points to keep in mind:
Yvonne Maffia
Cybersecurity, Federal Government, Infrastructure, Market Intelligence
Recently the Office of the Director of National Intelligence (ODNI) released a roadmap entitled Vision for the IC Information Environment to outline a vision to protect the nation from adversaries and maintain a “strategic advantage" over those intending to harm its information infrastructure. The roadmap contains recommendations from a collaboration of more than one hundred technical leaders from the intelligence community (IC).
Toan Le
Market Intelligence, State & Local Government, Technology
The Department of Justice (DOJ) recently released its Final Rule on Title II of the Americans with Disabilities Act (ADA). In doing so, they created numerous new requirements state and local governments need to adhere to in designing their digital offerings including adding video narration options, making websites compatible with assistive technologies and making web page labels descriptive.
Gabriel Zighelboim
Market Intelligence, State & Local Government, Technology, Transportation
Emerging technologies such as artificial intelligence (AI) and machine learning (ML) are all the rage as of late, and one sector where they can provide innumerable benefits deserves special attention – transportation.
Yvonne Maffia
Big Data & Analytics, Healthcare, Market Intelligence, State & Local Government
Maternal and child health (MCH) has become a top concern nationwide, particularly in disadvantaged, underserved and rural communities. According to the U.S. Department of Health and Human Services (HHS), the United States is experiencing a maternal health crisis nationwide, as it has one of the highest maternal mortality rates among high-income nations; increasing rates of complications from pregnancy or childbirth; and persistent disparities in such outcomes.
Yvonne Maffia
Application Lifecycle, Market Intelligence, Technology
Federal officials have released a first of its kind Strategy focused on the security of the government’s space-based platforms and infrastructure, and the impact commercial solutions may have on supporting the continued need in this space; pun intended. According to the document, the 2024 Department of Defense (DoD) Commercial Space Integration Strategy is a first for the Department of Defense, and “provides a vision for prioritizing and aligning efforts to integrate commercial solutions into our national security space architecture.”What’s this for?
Susanna Patten
Cybersecurity, Market Intelligence, State & Local Government
The 2024 National Association of State Chief Information Officers (NASCIO) Midyear Conference took place in National Harbor, Maryland last week where state leaders shared insights into their top technology priorities, challenges, and lessons learned. Some of the key focus areas included artificial intelligence (AI) with emphasis on generative AI, data management, accessibility, and governance, cybersecurity and risk management, and modernization and the digital customer experience.Artificial Intelligence
Yvonne Maffia
Big Data, Market Intelligence
For the United States Navy, data has become a cornerstone of its operations, guiding the course of missions, and ensuring the safety of personnel. Every facet of maritime endeavors, from intelligence gathering, to navigation and logistics, relies on a steady stream of accurate and timely data. Harnessing and making the best use of that data, though, comes with its own challenges. These can include limited bandwidth, stringent security protocols, and the sheer volume of information generated across a host of platforms.
Toan Le