IT spending among federal civilian agencies has seen a marked increase over the past couple of fiscal years. The upcoming priorities for IT spending in fiscal 2025 include cybersecurity, AI, improving the public experience and making use of data as a strategic asset — as well as the stalwart category of IT modernization.
Overall, the budget for federal civilian IT market has increased 8.1 percent from fiscal 2023 to fiscal 2025. Altogether, federal civilian IT budgets are projected to be $76.8 billion in fiscal 2025.
The agencies expecting the greatest increases include the Department of Education with a 30% increase, Social Security Administration with a 12% increase and the Department of Homeland Security with a 9% increase. Agencies that have seen their budget requests decrease from fiscal 2024 by the largest margins include Department of Veterans Affairs with a 12% decrease, NASA with an 11% decrease and the Department of Agriculture with a 7%decrease.
Civilian agencies prioritize investments in application development, application support and operations, and business software. Let’s take a closer look at the priorities that make up IT budget requests, along with a couple of key programs.
FY2025 civilian IT budget priorities
