Early FY 2021 Budget – Where is the Money

In February, the White House released an early look at the Fiscal Year 2021 budget. This early look is a great indicator for small business government contracting firms looking to make strategic adjustments. No surprise, the IT industry gets the lion’s share. The figure? $92 Billion. That is a 5% increase.

With the Unites States looking to get ahead of the tech curve in areas like 5G, Cloud Computing, Cyber Security, Artificial Intelligence and Machine Learning, the monetary requirement plays a huge factor. Federal civilian agencies would receive a combined %53.4 billion, while the Defense Department would receive $38.8 billion.

The biggest question for government contracting firms would easily be, “Where is the money?” Agencies seeing a notable increase in IT-specific funding are departments of Veterans Affairs (27%), Energy (18%), State (16%) Health and Human Services (14%), and Education (14%).

On the opposite end, the General Services Administration, Department of Transportation, and Department of Commerce all saw a decrease in IT funding.

Author: Paul McVeigh