After reporting on information technology (IT) spending at the U.S. Army and Defense Agencies (Fourth Estate) from fiscal 2023 to 2025 over the last two weeks, this week’s article looks at the Department of Transportation (DOT). The deadly mid-air collision between an Army helicopter and an American Airlines flight on January 29, 2025, put the DOT, or more specifically the Federal Aviation Administration (FAA), in an unwanted spotlight concerning the safety of the U.S.’s aging National Airspace System (NAS).

The NAS is made up of multiple IT systems that provide various capabilities. Consequently, the FAA received increased IT funding for the effort. This isn’t the whole story, however, when it comes to IT spending at the DOT.

Total DOT IT Spending

The data provided here shows spending reported under Product Service Codes classified as IT and in FY 2025, the DOT obligated $3.5B for IT goods and services.

FY 2025’s total represented a 29.6% jump over the amount the DOT spent in FY 2023 and 25% more than it spent in FY 2024.

Spending by Top DOT Agencies

The reported data shows the following DOT components ranked from the most IT spending to the least from FY 2023-2025.

Five of the twelve organizations shown increased their IT spending over this three-year span, with the FAA consistently remaining at the top. This comes as no surprise as the FAA is historically the DOT’s most IT-heavy component.

Growth in the FAA’s IT spending doesn’t tell the whole story. Several other components, including the National Highway Traffic Safety Administration and Federal Motor Carrier Safety Administration also reported double-digit growth in IT spending. These are balanced out by components such as the Federal Transit Administration and St. Lawrence Seaway Development Corporation, which both significantly dialed back their IT spending.

DOT IT Spending by Business Size

Overall, DOT spending with small businesses has floundered since FY 2023. Conversely, large business partners have seen their obligations increase significantly.

The levels of IT spending with small businesses differ across components. The FAA, for example, spent $575M with small businesses in FY 2023, but $546M in FY 2025. The Office of the Secretary, by contrast, increased its IT spending from $107M to $123M over the same period.

Top Companies by DOT IT Spending

Turning to the companies earning the most, systems integrators own this space. The only large account reseller that appears in the top ten is CDW-Government.

Summing up, then, although a lot of focus goes to IT spending at the FAA, there are other parts of the DOT which have been spending strongly in recent years. This makes the DOT a department where industry partners, particularly large partners, should continue to pursue business opportunities.