Key takeaways
- The federal fiscal year ends Sept. 30, and most money not obligated by then expires for new obligations.
- September 2025 contract spending topped $152 billion, about one-fifth of the year's obligations, according to Bloomberg Government.
- Federal contract spending hit a record $834 billion in fiscal 2025, according to GovWin.
- Most year-end money moves through existing contracts, options and vehicles, so positioning has to happen months earlier.
Every federal fiscal year ends with a rush to obligate expiring funds before Sept. 30. This guide explains how the year-end surge works and how to be positioned for fiscal 2027's.
Why agencies spend at year-end
- Expiring money. Most discretionary appropriations are one-year funds that must be obligated by Sept. 30 or they generally can't be used for new obligations.
- Late appropriations. When Congress funds agencies through continuing resolutions, full-year budgets arrive late, compressing buying into the final months. Fiscal 2027 began under a CR through Dec. 11, 2026; see our FY 2027 appropriations tracker.
- Mid-year reviews. Agencies review budgets around the middle of the fiscal year and reallocate funds that programs won't use.
Year-end spending by the numbers
- $152 billion in September 2025. That was about one-fifth of fiscal 2025's annual obligations, and September's share has risen since fiscal 2023, according to Bloomberg Government.
- $834 billion total. Federal contract spending reached a record in fiscal 2025, up $57.4 billion, or 7.4%, according to GovWin.
- About $50 billion in IT. Agencies were on pace for nearly $50 billion in IT contract spending in the fourth quarter of fiscal 2025, a record for any quarter, according to Washington Technology's reporting on GovWin analysis.
- Single big orders. The State Department reported nearly $22.7 billion in facilities operations and maintenance obligations in September 2025 alone, according to GovWin.
How year-end money gets spent
- Existing vehicles. Task orders on GWACs, the GSA Schedule and agency IDIQs are the fastest way to obligate; see our federal contract vehicles directory.
- Options and modifications. Agencies exercise options and add funding to current contracts.
- Simplified acquisitions. Purchases up to the $350,000 simplified acquisition threshold, and micro-purchases up to $15,000, can move quickly; see our procurement thresholds guide.
- Small business set-asides. Agencies use year-end buys to help meet small business goals.
A plan for fiscal 2027's year-end
- October to March. Get on the vehicles your buyers use, register in SAM.gov and read agency procurement forecasts.
- April to June. Meet program owners, share pricing and a ready-to-buy scope, and learn which needs are unfunded.
- July to September. Keep quotes, capability statements and contract numbers ready so a contracting officer can award quickly.
- After Sept. 30. Follow up on awards that slipped and on needs that will carry into the new year.
How KSG helps
Kensington Sales Group's SDRs book meetings with public agencies across Federal, SLED, K-12 & Higher Ed, Healthcare, Tribal, Special Districts and Utilities. We build relationships with program offices months ahead, so you're the known option when year-end money needs a home. See how our federal sales development works.