Rising Civilian IT Spending Trends for FY 2025
IT spending among federal civilian agencies has surged in recent years. It is expected to continue with spending priorities for fiscal 2025 to include cybersecurity, AI, enhancing public services, and IT modernization. The total civilian IT budget has grown by 8.1% since 2023, reaching $76.8 billion for 2025. The Department of Education, Social Security Administration, and Department of Homeland Security are set to see the largest budget increases, while Veterans Affairs, NASA, and Agriculture face reductions. (Washington Technology October 7, 2024)
Key FY2025 Civilian IT Priorities:
- Cybersecurity: Spending increases by 15% to $13 billion, with a focus on public safety, implementing Executive Order 14028, Federal Zero Trust Strategy, and other software supply chain security and OMB memorandums. Agencies must prioritize zero-trust principles and cryptography, especially in vulnerable, sensitive systems. (ibid)
- Artificial Intelligence (AI): Major funding supports Executive Order 14110, establishing chief AI officers and allocating $300 million for AI risk management, plus $40 million for hiring and training AI talent. (ibid)
- Digital Public Experience: Efforts to improve digital services for the civilian sector under Executive Order 14058 and the 21st Century Integrated Digital Experience Act. (ibid)
- Data as a Strategic Asset: Emphasizing better use of data in decision-making, guided by the Federal Data Strategy.
- IT Modernization: Adoption of modern technologies and retiring legacy systems, with an additional $75 million for the Technology Modernization Fund. (ibid)
Agency Highlights:
- VA: Despite reduced budget requests, the VA is innovating AI integration, allocating $420.7 million for CRM, streamlining veteran services, and piloting AI for better productivity. (ibid)
- CISA: The Cybersecurity and Infrastructure Security Agency seeks $442 million for its CADS program, aimed at advancing cybersecurity analytics and data systems to detect, mitigate, and prevent cyber threats. (ibid)
As federal budgets are finalized, IT providers might align their solutions with these key programs and priorities for success.
Questions about Fiscal Year 2025 spending? Give us a call.
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