FY 2026 Budget - Slow and Fragmented

Despite statutory requirements to submit the budget by early February, the administration delayed its initial submission until May, offering only a skeletal “skinny budget” with limited details. As of late June, many key documents remain unpublished, including comprehensive overviews and agency-level justifications. This piecemeal approach has frustrated lawmakers and stakeholders who rely on timely, complete data to evaluate funding priorities and plan accordingly. Analysts like myself aren’t thrilled either; not only is the release slow and disjointed, but many of the numbers across available budget documents don’t align.

The Department of Defense’s budget exemplifies the confusion. The Pentagon recently released a portion of its budget request, without prior notice and with missing elements. Compounding the issue is the administration splitting funding between budget requests and the pending One Big Beautiful Bill Act, which would provide some agencies with additional funding. For example, funding for DOD some programs, such as shipbuilding and missile defense is within this one-time package. It’s a similar story with some other agencies.

One of the most glaring omissions in the FY26 budget release is the lack of detailed information on federal information technology (IT) investments. Traditionally, the Office of Management and Budget (OMB) provides a comprehensive IT Dashboard to provide insight into IT programs. This year, however, those documents are significantly delayed. The absence of this data hampers the ability of both Congress and the contracting community to understand IT priorities and needs. 

How Can Contractors Plan Ahead?

The change in administration has also complicated the use of historical federal contract spending data to inform forecasting and market sizing. Nearly every aspect of federal procurement is undergoing changes, essentially changing out the engine, brakes, spark plugs and window wipers of the “federal contracting car” while it’s in motion. Shifts in policy priorities, funding mechanisms, and procurement policies —such as the consolidation of a vast amount of IT spending under GSA and the potential for additional funding via the One Big Beautiful Bill Act —have disrupted year-over-year comparisons. Spending trends under the last administration – and for that matter, in the first Trump Administration – don’t provide the same foundation for assessment in the current environment. The lack of transparency and delayed release of detailed budget justifications erodes the reliability of historical baselines, forcing both analysts and contractors to rely more heavily on assumptions and scenario planning. Contractors will need to dive deeper than ever before into agency analysis to understand not only where the dollars are, but also the new or revised mechanisms agencies will use for procurement and the federal workforce that will be there to execute it.

How Can Federal Market Analysis (FMA) Help?

Looking ahead, we plan to publish a comprehensive “State of the Federal IT Market” report once the full set of IT budget details becomes available. This combined budget and forecast analysis will synthesize agency-level IT investments and available information regarding agencies’ IT programs and modernization priorities. Our goal is to provide clear, data-driven scenarios for where federal IT could be headed—and what it means for the market.

In the meantime, here’s a curated “playlist” of our current content providing insight into the budget data that is available:

• State Department FY 2026 Budget Request Highlights
• NASA’s FY 2026 Discretionary Budget Prioritizes Deep Space Exploration
• NASA Projects Lose Weight Under FY 2026 Skinny Budget
• Department of Homeland Security FY 2026 Budget Request Highlights
• VA Releases Details on its FY 2026 Discretionary Budget Request
• A Look at the Department of Transportation’s FY 2026 Budget Request
• DOJ FY 2026 Budget Reflects Renewed Priorities in National Security
• Highlights From the Department of Commerce FY 2026 Budget
• Proposed FY 2026 Discretionary Budget Significantly Impacts NOAA
• HHS FY 2026 Budget Reflects Recent Department Actions and Priorities
• Energy’s Budget Prioritizes Nuclear Energy Plans Outlined in Executive Orders
• A Look at Select Parts of the Defense FY 2026 Budget Appendix
• Civilian Agency Cybersecurity Budgets are a Mixed Bag for FY 2026
• FY 2026 President’s Budget Request – GovWin FMA’s First Take
• First Look: The Second Trump Administration’s Discretionary Budget and Recommendations for FY 2026
• First Look: Trump Administration’s FY 2026 Budget Blueprint

Although the typical markers and indicators are obscured by change, the federal government is still planning a healthy level of spending, although funding will shift with priorities. Contractors just need to be aware and agile enough to follow it.