20 current statistics summarizing the U.S. government’s spending on IT [with citations]

The federal government invested more than $100 billion in IT during FY 2025, across more than 4,000 projects within 25 different agencies

by Intelliworx

The U.S. government is by far the biggest IT customer in the world. 

Based on a 2025 estimate for global IT spending by the technology research firm Gartner, the federal government accounts for about 1.8% of all IT spending globally. 

It’s an eye-popping number for sure, but context is important. So, we recently dove into the available public data on the spending. We should note that we found a few interesting historical factoids – and did some of our own ‘napkin math’ along the way. 

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1. How much does the federal government spend on IT?

The U.S. federal government invested $102.31 billion in information technology during its 2025 fiscal year, which ran from October 2024 until September 2025. Of that, $30.696 billion – a little less than one-third of the total – was spent on “major investments” such as modernization.

(source: ITdashboard.gov)

(Click for larger image)

2. How many IT projects does the government have?

The most recent data we could find on the number of projects, which are sometimes referred to as IT investments or IT portfolios, suggests there are between 4,000 and 7,000 projects in play. 

According to the Congressional Research Service (CRS):

“The FY2025 budget includes funding for 4,446 investments at 25 agencies, of which 595 are categorized as ‘major’ IT investments.”

The most current GAO audit available, published in 2023, found the federal government has nearly 7,000 IT projects in play:

“…we analyzed the investments reported by all 26 agencies on the IT Dashboard for fiscal year 2024, [downloaded in October 2023]. We summarized the 6,708 IT investments that agencies reported by IT portfolio categories and investment types, according to OMB’s guidance for IT budget reporting.”

(sources: CRS, GAO-24-106693)

3. Most IT projects are on time and within budget

Of all the IT projects the government has underway, 90% of them are on time and 84% are on budget, as of March 16, 2026. 

(source: ITdashboard.gov)

4. Legacy IT systems account for ~80% of the budget

The GAO found that “agencies have typically reported spending about 80% on operations and maintenance of existing IT, including legacy systems.” 

(source: GAO-23-106821) 

5. Cost savings related to government IT spending

The OMB reported about $2 billion in cost savings in 2025. This includes savings in the following areas:

• $608 million in software licenses savings; 
• $374 million in avoiding IT portfolio duplication;  
• $276 million in digital services savings;
• $79 million in data center savings; 
• $318 million in commodity IT savings; and 
• $355 million in unspecified categories. 

(source: ITdashboard.gov)

6. Gov tech will account for 12.5% of U.S. tech spending

Including state and local government, the research firm Forrester estimates that government, at all levels, will spend $357 billion on technology in 2026. That’s up 4% year over year compared with the $343 billion spent in 2025. “Government technology will account for 12.3% of total US tech spending of $2.9 trillion in 2026.”

(source: Forrester) 

7. Some IT systems are 50 years old or older

The GAO has identified 69 legacy systems in operation by various federal agencies. Of those, the GAO identified 11 legacy IT systems as most in need of modernization. Eight of the 11 systems use outdated languages, four have unsupported hardware or software, and seven are operating with known cybersecurity vulnerabilities.” 

By our count of the GAO list, of those 11, nine are more than 30 years old, and five have been operating for 50 or more years.  

(source: GAO-25-107795) 

8. Top tech priorities for the next five years (2030)

A survey of federal IT decision makers by EY in 2025 identified the top technology priorities for the next five years. 

• • Improving cybersecurity (59%); 
  • Modernizing legacy systems (56%); 
  • Reducing costs (53%); 
  • Leveraging technology for better decision making (53%); 
  • Adopting innovative technologies (52%); 
  • Enhancing inter-agency collaboration (52%); and 
  • Expanding digital services (51%).

(source: EY GPS 2025 federal trends report) 

9. The U.S. government maintains 6,805 public-facing websites

The federal government maintains 6,805 public-facing websites. These sites earn some 3.27 billion views every month. 

(source: Performance.gov)

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10. IT workers account for about 4% of the federal workforce

It’s hard to say how many federal employees work in IT because titles can vary. However, an educated guess is somewhere around 70,000-100,000. 

Here’s what we found and used as the basis of that estimate:

• There were 93,462 personnel working in IT, according to an August 2024 post by the Partnership for Public Service.
• There were “about 99,000 workers” in “information technology management” according to Pew Research, as of January 2025.
• The federal government finished 2025 with “a net loss of tech employees” that was 17,228, according to reporting by MeriTalk. 

As of January 2026, the federal government employs 2,035,344 people – down 264,228 positions from the year prior. Using 100,000 to make the math clearer for estimation, IT workers make up about 4% of the federal workforce. 

There are two caveats. 

First, cybersecurity workers are excluded from the count of “IT workers.” The GAO tallied “63,934 federal and 4,151 contractor staff” dedicated to cyber. However, this number could be higher or lower, as the GAO noted, “most of the 23 agencies in our review couldn’t tell us the size and cost of their cyber workforce” (GAO-25-107405). 

Second, those federal employees assigned to tech positions in national security, such as defense or intelligence, are not included in public totals of tech workers. 

11. Tech Force aims to recruit 1,000 young technologists

The federal government has launched a program called the U.S. Tech Force initiative to recruit an initial cohort of 1,000 early‑career technologists. Those hired will be employed for two‑year tours focused on AI, data modernization, and digital services. “Annual salaries are expected to range from $150,000 to $200,000, depending on experience level and agency placement.”

(source: MeriTalk)

12. IT services contracts at the biggest agencies have declined

A handful of the largest federal agencies account for most of the federal government’s spending on IT. Many of them spent less on contracts in FY25, according to an analysis by GovTribe:

• The Department of Defense awarded $58.6 billion in contracts for IT-related services, down from $104.6 the year prior;
• The Department of Health and Human Services awarded $6.4 billion in contracts for IT-related services, down from 11.1 billion the year prior;
• The Department of Homeland Security awarded $4.6 billion in contracts for IT-related services, down from $9.4 billion the year prior; and
• The Department of Veterans Affairs awarded $5.4 billion in contracts for IT-related services, down from $8.3 billion the year prior. 

(source: FY 2026 IT Budget Breakdown by GovTribe) 

13. Federal government’s procurement of software licenses 

The government does not publish a precise list of the number of software licenses procured or maintained. Estimates suggest that, overall, the government spends $20 billion annually on software licenses. 

A January 2024 report that analyzed 24 different federal agencies found that “10 vendors accounted for the majority of the most widely used licenses.” 

The same report references 2021 GAO data on payments processed for licenses and found the top three software providers are Microsoft (30%), Adobe (10%), and Salesforce (9%). 

There is legislation in play to address the proliferation of software licenses. In addition, the government has implemented its OneGov strategy to pool its “collective purchasing power” rather than having individual agencies make separate purchases for the same products.

(source: GAO-24-105717) 

(Click for larger image)

14. No-code and low-code software has tripled

About 38% of federal agencies use no-code or low-code software applications – that’s “roughly tripled from 12% five years ago.” 

(source: EY Government 2025 Federal Trends Report) 

15. Government AI use cases proliferate

As of January 2026, the federal government has reported 2,133 use cases for AI across 41 agencies. That’s up from 571 use cases in 2023. We’ve highlighted a few examples here. 

“The inventories serve as a barometer for the government’s adoption of the technology, though it’s important to note that they aren’t designed to include every single use of AI across the federal government,” according to FedScoop.

(source: Github)

16. 90% of federal agencies use AI

A survey by the public sector division at Google found that 90% of federal agencies are using AI currently. The most common use cases respondents reported were as follows:

• 54% are using AI for document and data processing;
• 40% are using AI for workflow and process automation; and 
• 34% are using AI in decision support systems. 

Yet barriers remain – the most common of which are:

• 75% cited budget constraints; 
• 41% cited legacy systems; and
• 37% cited a skills gap among employees. 

The barriers listed here track with the barriers reported by 10 Chief AI Officers working for federal agencies, published recently. 

(source: Google Public Sector)

17. Just 40% of federal websites are Section 508 compliant

Section 508 of the Rehabilitation Act requires government tech to be accessible for” the 70 million Americans with disabilities. However, “less than 40% of the government’s most-viewed public webpages are fully accessible,” according to a new report by the General Services Administration. On average, these sites earned a score of 1.96 across a 5-point scale. 

This may just be a glimpse of the issue. The GAO said 60 agencies submitted data for the report – and some agencies omitted data in certain sections. Another 43 agencies didn’t respond, “and more than half of the responding agencies cited resource limitations.”

(source: NextGov)

18. 106 billion government forms completed

A report by the U.S. Chamber of Commerce, which analyzed data in 2021-2022, found there are 9,858 unique government forms. These forms cover everything from filing taxes to federal permitting. 

The Chamber estimates that 106 billion forms are processed every year. Paper-based forms cost Americans about $117 billion and 10.5 billion hours – what OMB calls a “time tax.” The cost incurred by agencies is roughly $38.7 billion annually. 

It’s worth mentioning that this is an area where Intelliworx excels; see this SaaS case study: How the Department of Veteran Affairs modernized financial disclosure. 

(sources: NextGov, U.S. Chamber of Commerce)

19. The government has spent ~$1.6-plus trillion on IT over 20 years

The U.S. government established tighter processes for procuring IT with the E-Government Act of 2002, according to the CRS. It established the E-Gov office within OMB, along with improved policies for capital planning and controls, such as OMB Circular No. A-11. 

The CRS also started reporting reliable numbers tracking IT spending across the federal government. The first report in 2003 shows total IT spending a little north of $50 billion, and over time has grown to the 2025 figures at more than $100 billion.

A conservative estimate, based on the CRS numbers, we assume an average of $80 billion a year for 20 years: ~$80 billion x 20 = ~$1,600,000,000.

It’s important to note that this figure is nominal – not adjusted for inflation. The government also invested sizeable amounts of money in technology well before 2003. There are also investments in classified systems that are excluded from public reporting. 

(Click for larger image)

(source: Congressional Research Service)

20. The first federal CIO [cited by the news]

The Clinger-Cohen Act of 1996 was the first law to “shape the presentation of IT spending data in the President’s budget submission,” according to the CRS. It also established “the role of CIOs within agencies.”

So, who was the first CIO? It’s hard to say exactly, as the role seems to have been an evolution, rather than a clear line of demarcation. However, the first CIO we could find named in government trade publications was Clay Hollister, who worked for FEMA.

What was FEMA’s IT budget in 1996? 

• $36 million.

What were FEMA’s IT priorities in 1996?

• Developing a National Emergency Management Information System (NEMIS) and standardizing the organization on the Microsoft Windows operating system. 

What was the CIO’s biggest challenge?

• “Managing despite declining resources. All our budgets and staff are being reduced as part of [the] government budget reductions. Providing service against that fact requires us to find ways to engineer cheaper solutions. That is much harder than anything else we do.”

Thirty years later, the top federal CIO priority is artificial intelligence – and budget is still the biggest barrier – according to 9 out of 10 federal CIOs who participate in a research project on this topic.

(source: Government Executive)

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