Civilian agency spending cratered during shutdown

The 20 largest civilian federal agencies collectively spent 63% less money in October 2025 — during the government shutdown — compared to October 2024, according to reported spending data pulled from the Federal Procurement Data System by Deltek in mid-November.

Reported spending at some large agencies, including NASA and the departments of State and Energy, declined by 84% or more compared to October 2024. Energy, which historically frontloads spending with fiscal years beginning in October, experienced the largest drop in dollars — $6.5 billion — among agencies during the October shutdown.

The General Services Administration, which is consolidating procurement across government, spent $393 million this October during the shutdown, just 5% less than the $412 million spent in October 2024. The only agency to spend more this October than last was the Interior Department.

The spending decline is likely due to a combination of fewer contracts issued across agencies by contracting officers — many of whom were furloughed during the 43-day shutdown — and lags in processed invoices. The full scope of the shutdown’s impact on government spending may not be revealed for months as more data comes in and contracting professionals dig out from under backlogs of work.

“The big hesitation in drawing a conclusion here is the government wasn’t around, so we don’t know yet how much of the data is being fully reported,” said John Slye, senior advisory research analyst at Deltek. “But it’s definitely a whiplash. The government went from cranking things out up until midnight on September 30 and then you go from that to not even a hard stop, but a ‘don’t-show-up-on-Oct. 1.’”

Indeed, civilian agencies spent $109 billion on goods and services in the fourth quarter of FY 2025 — 5% more than the $104 billion spent in Q4 of 2024. Civilian agencies concluded the year with a total contract spend of $284 billion, just behind FY 2024’s historic $295 billion total, amid a presidential transition that dramatically reshaped priorities around government contracting. The Department of Government Efficiency, for example, specifically culled contracts dealing with DEI and other consulting and professional services.

While professional services spending across civilian agencies declined significantly as the fiscal year wore on, it was offset in part by increased spending in IT. Prior to the shutdown, the federal government as a whole — civilian agencies and the Defense Department — were pacing toward a historic $50 billion IT spend in Q4 of Fiscal 2025. As of Nov. 17, civilian agencies, which usually comprise about half that total, spent $23 billion on IT in Q4, just $1 billion less than the record $24 billion civilian agencies spent in Q4 of 2024. Civilian spending data is still coming in for 2025, however, so totals may rise.

Defense spending data lags by about 90 days, so Q4 totals aren’t available yet, and it’s too soon to know whether the federal government actually spent the projected $50 billion on IT during the last quarter. But, Slye said, there is enough data to indicate government spending on contracts has not cratered writ large.

“We did not have a tank in 2025,” Slye said.

While spending data from the shutdown continues to roll in, Slye said he’ll be interested to see whether the abruptness of the shutdown — transitioning from long hours to furloughs — impacts any spending momentum the government may have had.

“I don’t think you can separate the human factor,” Slye said. “Momentum has a lot to do with the human factor. There is a productivity factor that may be impacted by the whiplash many must have experienced.”