FY 2026 President’s Budget Request – GovWin FMA’s First Take

On Friday, the Office of Management and Budget (OMB) released the fiscal year (FY) 2026 Budget Appendix, providing supplemental details to the Trump Administration’s FY 2026 Budget Blueprint, a.k.a. “skinny budget,” released at the beginning of May.

The administration’s budget proposal includes $1.6T in top-line discretionary budget requests for federal department and agencies, 12.6% below the $1.83T estimated budget for FY 2025 enacted through a full-year Continuing Resolution (CR).

The GovWin Federal Market Analysis (FIA) team has dug into the available budget detail so that we could provide you with our first impressions of what we found noteworthy for the largest departments and agencies, especially concentrating on spending priorities that may lead to potential contractor opportunities or impacts in FY 2026, which will begin October 1, 2025.

Budget Details Continue to Trickle Out

The FY 2026 budget appendix is only a small fraction of the budget documents that OMB traditionally releases, so more documents are expected in the coming days and weeks. In addition to the OMB appendix, many civilian departments have begun to release their specific congressional budget justifications (CBJs). However, there is wide variance on the current completeness of these agency documents. Department of Defense (DOD) budget detail remains extremely limited at this point, which is not atypical, as DOD tends to lag civilian agencies by days or more often weeks.

Where detailed agency budget requests and CBJ documents are not yet available or incomplete, we have relied on information from OMB budget appendix and the FY 2026 Budget Blueprint, a.k.a. “skinny budget,” released at the beginning of May to provide context and details. These budget request figures do not include FY 2026 funding requests included in the current FY 2025 budget reconciliation (i.e., the “big, beautiful bill”) that is currently under negotiation in Congress.

FY 2026 Discretionary Budget Request – Top Departments

Below is a summary graphic followed by key funding details and initiatives arranged by departments of interest.

Air Force

The president’s budget request provides $260.8B in total discretionary funding for the Department of the Air Force (USAF), of which $26.4B is for the U.S. Space Force.

Funding highlights include:

• Contains $49.0B for Military Personnel (MILPERS), including the Air Force Reserve and Air National Guard. Space Force MILPERS accounts for $1.5B.
• Includes $81.3B for Operations and Maintenance (O&M), including $6.0B for Space Force O&M and $360M for Air Force Family Housing O&M.
• Provides $57.8B for Procurement (PROC), including $3.4B for Space Force Procurement.
• Allocates $67.6B for Research, Development, Test and Evaluation (RDT&E), including $15.5B for RDT&E at the Space Force.
• Requests $5.0B for Military Construction (MILCON), including Air Force Reserve and Air National Guard.

Navy

The president’s budget requests $246.8B for the Department of the Navy, including $33.3B for the U.S. Marine Corps.

Funding highlights include:

• Contains $61.6B for Military Personnel (MILPERS), including $18.1B for the U.S. Marine Corps (USMC), including USMC Reserves, and $2.7B for Navy Reserves.
• Includes $88.8B for Operations and Maintenance (O&M), including $11.4B for USMC O&M and $476M for Navy-wide Family Housing O&M.
• Provides $42.0B for Procurement (PROC), including $3.7B for the Marine Corps Procurement.
• Allocates $25.7B for Research, Development, Test and Evaluation (RDT&E).
• Requests $7.7B for Military Construction (MILCON), including the Navy Reserve.
• Supplies $20.8B for Navy Shipbuilding and Conversion.

Army

The president’s budget requests $187.0B for the Department of the Army, including the Army National Guard and Army Reserve.

Funding highlights include:

• Contains $71.2B for Military Personnel (MILPERS), including the Army Reserve and Army National Guard.
• Includes $71.8B for Operations and Maintenance (O&M), including $378M for Family Housing O&M.
• Provides $26.3B for Procurement (PROC).
• Allocates $14.6B for Research, Development, Test and Evaluation (RDT&E).
• Requests $3.0B for Military Construction (MILCON), including Army Reserve and Army National Guard.

Defense Agencies

The president’s budget requests $146.2B for Defense Agencies (Defense-Wide).

Funding highlights include:

• Includes $55.9B for Operations and Maintenance (O&M).
• Provides $6.0B for Procurement (PROC).
• Allocates $33.9B for Research, Development, Test and Evaluation (RDT&E).
• Allots $40.5B for the Defense Health Program.
• Supplies $2.0B for Defense Working Capital Funds (WCF).

Veterans Affairs

The president’s budget requests $140.0B in base discretionary budget funding for VA, a 4% increase above the FY 2025 enacted level, and includes Medical Care Collections and the Recurring Expenses Transformational Fund.

Funding highlights include:

• Requests $114.9B in discretionary funding for the VA Medical Care Program, including appropriations for Medical Services, Medical Community Care, Medical Support and Compliance, and Medical Facilities. The VA requests $122.3B in discretionary advance appropriations for VA Medical Care for FY 2027.
• Provides $52.7B for the mandatory Cost of War Toxic Exposures Fund (TEF), and $900M for the discretionary Recurring Expenses Transformational Fund (RETF).
• Includes $5.9B for Information Technology Systems appropriation funds to support enterprise IT capabilities and enable delivery of healthcare, benefits and memorial services to veterans.
• Invests $3.5B for the Veterans Electronic Health Record (EHR) program to continue development and deployment of a new EHR system.
• Requests $1.1B and legislative authority to oversee and administer the Bridging Rental Assistance for Veteran Empowerment (BRAVE) proposal to address veteran homelessness. Of that, requests up to $100M for pilot programs.

Health and Human Services

The president’s budget requests $94.7B in base discretionary budget funding for HHS, a 25% decrease from the FY 2025 enacted level.

Funding highlights include:

• Consolidates nineteen institutes into an eight-institute structure at the National Institutes of Health (NIH) with a $27.5B request to realign functions and streamline research portfolios.
• Includes $14.0B for the new Administration for a Healthy America (AHA) which combines several previous HHS agencies and some Centers for Disease Control and Prevention (CDC) programs.  
• Provides $4.3B to CDC, including $588M to establish the new Center for Preparedness and Response.
• Requests $941M for the Centers for Medicare and Medicaid Services (CMS), alongside $1.7B in mandatory investments.
• Invests $191M to continue transition of the new Electronic Health Record system at the Indian Health Service.
• Provides $500M for Make America Health Again (MAHA) priorities.

Homeland Security

The president’s budget requests $63.7B in total discretionary budget for DHS, 2.0% below the FY 2025 full-year CR level. In addition, the budget includes $26.5B for the Disaster Relief Fund (DRF).

Funding highlights include:

• Provides the Cybersecurity and Infrastructure Security Agency (CISA) with nearly $2.4B in total funding, a reduction of $495M from FY 2025. Investments include $642M for Cyber Operations; $410M for the Continuous Diagnostics and Mitigation (CDM) program; and $244M for Cybersecurity Technology and Services.
• Supplies $23.0B for Customs and Border Protection (CBP), of which $18.1B is for Operations Support and $766M is for CBP Procurement, Construction, and Improvements.
• Allots $11.6B for the Transportation Security Administration (TSA), of which $10.6B is for Operations and Support, $216M is for Procurement, Construction, and Improvements, and $35M is for Research and Development.
• Allocates $4.0B for the Management Directorate, of which $642M is for the DHS Office of the Chief Information Officer operations. Major investments include $107M for Financial Systems Modernization, $40M for Homeland Advanced Recognition Technology Development and Operations, $8.4M for One Net - Homeland Security Enterprise Network, $3.3M for DHS Data Framework, and $3.2M for Human Resources Information Technology.

Energy

The president’s budget request provides $46.3B in base discretionary funding for DOE, a 7% decrease over the FY 2025 enacted level.

Funding highlights include:

• Funds Energy and Water Development and Related agencies at $51.6B, includes $166M to support IT investments in infrastructure modernization, cybersecurity, data analytics and mission delivery to include AI introduction.
• Allocates $38.6B for Atomic Energy Defense Activities including $30B (+24%) for National Nuclear Security Administration (NNSA) of which $25B is for weapons activities
• Provides $7.1B for the Office of Science to prioritizing emerging technology innovations in fusion energy, quantum information sciences, high-speed computing and artificial intelligence/machine learning.
• Eliminates funding for the Office of Clean Energy Demonstrations (OCED), the Office of Technology Commercialization (formerly Office of Technology Transitions) and the Tribal Energy Loan Guarantee Program.
• Funds the Environmental Management at $8.1B to continue legacy clean-up management, specifically related to the Manhattan Project and Cold War programs with $3.1B for the Hanford site.
• Requests $1.37B for the Office of Nuclear Energy to accelerate innovation and deployment of commercial nuclear technologies including $326M for infrastructure and $321M for Fuel Cycle R&D.
• Reduces Energy Efficiency and Renewable Energy (EERE) funding to $888M (-74%) allocating $150M for the Office of Cybersecurity, Energy Security and Emergency; $223M for the Petroleum Reserve Accounts.
• Provides $595M for the Office of Fossil Energy to advance fossil energy production in coal, oil, gas and critical minerals.
• Reduces Advanced Research Projects Agency – Energy (ARPA-E) by 56.5% to $200M for FY 2026.
• Cancels $15.2B in unobligated balances from the Infrastructure Investment and Jobs Act (IIJA) of which $6.5B were FY 2026 advanced appropriations.

Housing and Urban Development

The president’s request provides an estimated $43.5B in discretionary funding for the Department of Housing and Urban Development.

Funding highlights include:

• Requests $365M for Information Technology.
• Allocates $12B for the Community Development Fund, including $25M for capacity building and technical assistance with contracting and procurement processes.
• Provides $95M for Policy Development and Research Activities, including research support, surveys, data infrastructure and knowledge management.

Agriculture

The president’s request provides $25.6B in discretionary funding for the Department of Agriculture, a decrease of 65% from the FY 2025 annualized CR level.

Funding highlights include:

• Requests $91M for Information Technology, of which $77.4M is for cybersecurity.
• Reprioritizes $3.0M to establish an enterprise-wide Artificial Intelligence Program.
• Includes $2.1B for the U.S. Forest Service, $296M of which is for Forest Service Operations Information Technology and Centralized Processing.
• Allocates $1.6B for Farm Production and Production, including $285M for the Farm Production and Conservation Business Center. Of this total $38.3M is slated for contractor support for Farm Program Modernization IT projects.

Justice

According to the FY 2026 Budget Blueprint, the president's budget requests $33.2B in base discretionary budget funding for DOJ, an 8% decrease from the FY 2025 enacted level.

Funding highlights include:

• Requests $10.1B for the Federal Bureau of Investigation (FBI).
• Provides $2.5B for the Drug Enforcement Administration to support a focus on foreign operations and resources in countries identified as Major Drug Transit or Major Illicit Drug Producing Countries.
• Includes $1.7B for the United States Marshals Service (USMS), an $11M increase over the FY 2025 enacted level, with FY 2026 priorities in judicial security and violent crime reduction.
• Maintains funding for the Executive Office for Immigration Review at $844M.
• Provides $50M for the Justice Information Sharing Technology (JIST) fund to support priorities such as enterprise cybersecurity, IT architecture and oversight, and IT transformation and innovation engineering.
• Eliminates the Community Relations Service with no requested FY 2026 funding.

Transportation

The president’s request provides $27.1B in discretionary funding for the Department of Transportation, 6.7% above the FY 2025 annualized CR level.

Funding highlights include:

• Requests $247.6M for Information Technology, of which $75M is for cybersecurity.
• Provides $73.6B (inc. mandatory spending) for the Federal Highway Administration, $10.2B of which is for the Highway Infrastructure Program.
• Contains $27B for the Federal Aviation Administration, including $1.0B for the Project LIFT (Legacy Infrastructure to Future Technologies) program designed to replace the FAA’s analog radio communications with modern Internet-Protocol based systems.

• Allocates $926.6M (inc. IIJA funds) for the Federal Motor Carrier Safety Administration, $63.1M of which is for legacy IT system modernization.

National Aeronautics and Space Administration

The president’s budget request provides $18.8B in base discretionary budget authority for NASA, a 24% decrease over the FY 2025 enacted level.

Funding highlights include:

• Requests $481M for department-wide Information Technology (IT) prioritizing mission-critical functions, accelerating Generative AI deployment, increasing automation and collaborations to enhance cybersecurity programs; eliminates Office of Science, Technology, Engineering and Math (STEM) and related activities.
• Allots $8.3B for Deep Space Exploration Systems, including $4.8B for the Moon to Mars (M2M) Transportation System and $2.8B for the M2M Lunar Systems Development.
• Provides $3.1B for Space Operations, including $1.2B for Space Transportation, $920M for ongoing International Space Station support and $649M for Space and Flight Support.
• Allocates $1.2B for Space Technology (STMD) focusing on Space Transportation (GO) $47M, Space-to-Surface Access (LAND) $27M, Surface Infrastructure and Exploration (LIVE), $56M and the In-Space Infrastructure and Discovery (EXPAND) $47M programs; includes $175M for Catalysts and Innovative Mechanisms and $169M for the Small Business Innovative Research and Technology Transfer (SBIR/STTR) programs.
• Requests $2.1B for Safety, Security, and Mission Services (SSMS) to meet workforce, infrastructure, information technology, and business operations requirements. In addition to the IT services, SSMS provides $620M for Engineering, Safety and Operations and $524.9M for Mission Enabling Services.

State

The president’s budget provides $9.6B in total discretionary funding for the Department of State and related international affairs programs. The budget sustains the roll-in of U.S. Agency for International Development (USAID) and related international assistance programs. This is a $49.7B reduction, including rescissions and $20B in cancellations, from the estimated FY 2025 annualized CR level.

Funding highlights include:

• Allocates $4.2B for the Bureau of Consular Affairs (CA), an increase of $195M from the FY 2025 estimated level. Of the total CA budget, $821M is for Consular Systems and Technology.
• Allots $2.0B for Embassy Security, Construction and Maintenance, of which $1.2B is for Worldwide Security Upgrades.
• Requests $399.7M for the IT Central Fund (ITCF), which is $10.7M above the FY 2025 estimated level. This total amount includes $319M for the Bureau of Diplomatic Technology (DT), of which  $187M is for Enterprise Software License and Maintenance; $41.6M is for Cyber Operations; $3.0M is for Artificial Intelligence (AI); and $49.7M to integrate and sustain USAID’s enterprise data systems, including Phoenix and the Global Acquisition and Assistance System (GLAAS), into the State Department.
• Supplies $358M for the integration of certain foreign assistance functions and activities previously covered by USAID, enabling 217 direct hire positions and related support costs for program management and oversight.
• Provides $30M for the Bureau of Intelligence and Research (INR), a $903K increase above the FY 2025 estimated level, to support strategic realignment to address emerging security, technological, and emergency management priorities and challenges.

Treasury

According to the FY 2026 Budget Blueprint, the president’s budget requests $11.5B in base discretionary budget funding for Treasury, a 19% decrease from FY 2025 enacted level.

Funding highlights include:

• Provides $9.8B to the Internal Revenue Service (IRS), which is $2.5B less than the FY 2025 enacted level.
  • Rescinds $16.5B in unobligated balances from the Inflation Reduction Act (IRA).
• Requests $292M for Departmental Offices, including a $28M increase in U.S. National and Economic Security and International Finance and Investment priorities, and $4.9M for Trade and Tariff Policy Development.
• Invests $238M in the Office of Terrorism and Financial Intelligence, a 5% increase over FY 2025, and includes an additional $11M to support data governance, infrastructure and data integration capabilities.
• Requests $59M for Treasury’s Cybersecurity Enhancement Account, a 62% increase over the FY 2025 level to prioritize cloud-based security, security operations center enhancements, and security logging.
• Maintains Department-wide Systems and Capital Investments Program funding at $11M.

Commerce

The president’s budget request provides $8.4B in base discretionary funding for Commerce, a 18% decrease over the FY 2025 enacted level.

Funding highlights include:

• Requests $4.5B for the National Oceanic and Atmospheric Administration (NOAA), a 27% reduction from the FY 2025 full-year CR. Reorganizes the National Weather Service,  under Operations, Research and Facilities with $1.4B for the National Weather Service program, eliminates the Office of Oceanic and Atmospheric Research and rescinds all unobligated IIJA and Inflation Reduction Act (IRA) funds.
• Allocates $1.7B for the Census Bureau setting aside $1.4B for periodic censuses and programs including the 2030 Decennial Census program’s first major field test in 2026.
• Allots $5B for the U.S. Patent and Trademark Office (USPTO)
• Provides $833M for the National Institute of Standards and Technology (NIST) focusing on artificial intelligence, quantum information science, biotechnology and other emerging technologies.
• The budget allocates an estimated $2.1B for CHIPS-related loan and grant programs including embedded funding within the NIST and NTIA offices.

Additional Analysis Coming

The budget observations highlighted above are our initial takeaways from the budget documents released by OMB and the various departments and agencies at the time of publication.

In the coming days, as OMB, DOD and other federal departments and agencies release more complete budget documentation – including information technology (IT) budgets – the GovWin Federal Market Analysis team will be publishing more robust analysis of the FY 2026 budget, where we will go into greater detail on the key initiatives, IT investments and contractor implications that will shape the federal IT marketplace as we look to head into FY 2026.