FY2026 Federal Spending: CMS Leads Sub-Agencies with $1.0T, SSA Obligates $847B
The Centers for Medicare and Medicaid Services (CMS) has already obligated over $1.0T in FY2026, leading all federal sub-agencies in total spending. The Social Security Administration follows closely behind with $847.1B across more than 154,000 individual awards.
Here is the reality of federal distribution: massive departments like Health and Human Services (HHS) do not spend the money directly. The operational sub-agencies execute the actual contracts, grants, and direct payments.
Bottom line: FY2026 federal sub-agency spending is heavily concentrated in healthcare, social safety nets, and infrastructure. CMS and the Social Security Administration account for the vast majority of obligated funds, while transportation sub-agencies are deploying tens of billions into highway, transit, and rail projects.
How USAspending Tracks FY2026 Federal Sub-Agency Spending
When tracking federal obligations, the top-level awarding agency only tells part of the story. The awarding sub-agency reveals the actual functional purpose of the taxpayer money.
For example, the Department of Transportation (DOT) is a massive umbrella organization. The actual agencies signing the checks are units like the Federal Highway Administration and the Federal Railroad Administration.
By analyzing sub-agency data, we can calculate the average award sizes and pinpoint exactly how federal capital is deployed in FY2026.
Top Federal Sub-Agencies by Obligated Funds in FY2026
The table below outlines the top federal sub-agencies by total obligated funds in the current fiscal year. These ten operational units account for trillions of dollars in federal contracts and grants.
| Department | Sub-Agency | Total Awards | Obligated Amount |
|---|---|---|---|
| Department of Health and Human Services | Centers for Medicare and Medicaid Services | 3,161 | $1.0T |
| Social Security Administration | Social Security Administration | 154,567 | $847.1B |
| Department of Transportation | Federal Highway Administration | 29,063 | $55.7B |
| Department of Health and Human Services | Administration for Children and Families | 3,821 | $47.4B |
| Department of Housing and Urban Development | Assistant Secretary for Public and Indian Housing | 29,119 | $16.0B |
| Department of Transportation | Federal Transit Administration | 1,476 | $13.8B |
| Department of Transportation | Federal Railroad Administration | 199 | $10.5B |
| Railroad Retirement Board | Railroad Retirement Board | 57,873 | $7.3B |
| Department of Agriculture | Agricultural Marketing Service | 1,291 | $1.8B |
| Department of the Interior | National Park Service | 1,502 | $722.4M |
Source: USAspending.gov.
The Trillion-Dollar Mark: CMS Federal Obligations 2026
CMS federal obligations 2026 have crossed the trillion-dollar threshold. The agency distributed $1,008,028,003,577 across just 3,161 awards.
This massive volume of capital flows directly into state Medicaid offices, healthcare facilities, and federal health programs. Because the award count is relatively low compared to the total obligation, the average CMS award size in FY2026 is a staggering $318.8M.
Social Security Administration Spending FY2026
Social Security Administration spending FY2026 represents the second-largest block of federal obligations. The agency committed $847,194,107,792 through 154,567 separate awards.
This high award count reflects the decentralized nature of the agency's administrative contracts and localized distributions. The average SSA award size sits at $5.48M, a stark contrast to the massive block grants executed by CMS.
Administration for Children and Families
Beyond CMS, the Department of Health and Human Services relies on the Administration for Children and Families (ACF) to distribute non-medical social funding. The ACF is a primary driver of family assistance initiatives.
In FY2026, the ACF obligated $47.4B across 3,821 awards. This funding supports state-level block grants and early childhood education programs, averaging $12.4M per award.
Significant Spending by Transportation Sub-Agencies in FY2026
The Department of Transportation operates through several highly funded sub-agencies. These units handle the direct distribution of infrastructure grants, state-level funding formulas, and federal transit contracts.
Three specific DOT sub-agencies dominate the FY2026 ledger:
- Federal Highway Administration (FHWA): Obligated $55.7B across 29,063 awards.
- Federal Transit Administration (FTA): Distributed $13.8B through 1,476 contracts and grants.
- Federal Railroad Administration (FRA): Committed $10.5B in just 199 massive awards.
But there is a catch. Federal railroad administration spending 2026 is highly concentrated compared to highway funding.
With only 199 total awards, the average FRA obligation exceeds $52.8M per contract or grant. This indicates a focus on large-scale, capital-intensive rail infrastructure projects rather than smaller municipal purchases. By comparison, the FHWA averages $1.91M across its 29,063 awards.
Other Major Sub-Agency Obligations in the Current Fiscal Year
Several other federal units manage multi-billion-dollar portfolios in FY2026. These agencies handle housing, agriculture, specialized retirement benefits, and public lands.
Housing and Urban Development
The Assistant Secretary for Public and Indian Housing, a sub-agency of HUD, obligated $16.0B in FY2026. This capital was distributed across 29,119 awards.
These funds typically flow to local housing authorities and tribal governments to maintain public housing infrastructure. The average award size for this HUD sub-agency is $549.6K.
Specialized Retirement and Agriculture
The Railroad Retirement Board operates as an independent agency, managing benefits specifically for railway workers. In FY2026, the board obligated $7.3B through 57,873 awards, averaging $127.1K per distribution.
The Department of Agriculture executes significant market intervention through the Agricultural Marketing Service. This sub-agency obligated $1.8B across 1,291 awards, funding commodity purchases and supply chain programs at an average of $1.41M per award.
National Park Service
The Department of the Interior distributes funds through the National Park Service to maintain federal lands and conservation programs. The NPS committed $722.4M through 1,502 awards in FY2026.
The average NPS award size is $480.9K. These funds cover everything from facility maintenance contracts to localized environmental grants.
Understanding Federal Money Recipients in FY2026
Federal dollars eventually flow to specific commercial entities, local governments, and educational institutions. The top federal money recipients 2026 include a mix of universities, specialized housing corporations, and municipal governments.
Below is a breakdown of notable FY2026 recipients across various award types, including contracts, grants, and direct payments.
| Recipient | Location | Award Count | Total Received |
|---|---|---|---|
| LAKE UNION DRYDOCK COMPANY | Seattle, WA | 2 | $5.6M |
| GLOBAL COM, INC. | Sterling, VA | 1 | $487.1K |
| FARRELL BELL SENIOR APARTMENTS INC | Indianapolis, IN | 1 | $249.5K |
| THE SILENT WORKERS CIRCLE FRANKFORT... | Frankfort, KY | 1 | $158.2K |
| CANAL OVERLOOK LLC | Bedford, NH | 1 | $140.1K |
| DELTA HOUSING PARTNERS III LTD | Shaw, MS | 1 | $138.0K |
| TECHNICAL AND ENGINEERING SUPPORT ALLIANCE, LLC | Rockville, MD | 1 | $81.3K |
| COLONIAL VILLAGE LTD | Columbus, OH | 1 | $78.8K |
| ARC/HDS WILSON CO. APTS. CORP. | Wilson, NC | 2 | $58.2K |
| CCM - OAKWOOD MANOR DENISON IA LLC | Milwaukee, WI | 1 | $46.1K |
| COUNTY OF TRINITY | Weaverville, CA | 1 | $3.1K |
| THE LABORATORY INSTITUTE OF MERCHANDISING, INC. | New York, NY | 1 | $3.1K |
| UNIVERSITY OF EVANSVILLE | Evansville, IN | 1 | $3.0K |
| THE COLLEGE OF IDAHO INC | Caldwell, ID | 1 | $1.5K |
Source: USAspending.gov.
Commercial and Defense Contractors
Commercial enterprises secure a significant portion of federal contracts in FY2026. LAKE UNION DRYDOCK COMPANY leads this specific dataset with $5.6M received across two awards in WA. This capital typically supports maritime maintenance and federal fleet readiness.
Technology and engineering firms also capture targeted federal dollars. GLOBAL COM, INC. secured $487.1K in VA, providing specialized telecommunications or IT services.
Similarly, TECHNICAL AND ENGINEERING SUPPORT ALLIANCE, LLC received $81.3K in MD. These entities form the backbone of federal civilian and defense contracting.
Housing and Community Development Recipients
Federal housing funds flow directly to localized property management and senior living corporations. FARRELL BELL SENIOR APARTMENTS INC received $249.5K in IN to support local housing initiatives.
Other specialized housing recipients in FY2026 include:
- CANAL OVERLOOK LLC in NH: $140.1K
- DELTA HOUSING PARTNERS III LTD in MS: $138.0K
- COLONIAL VILLAGE LTD in OH: $78.8K
- ARC/HDS WILSON CO. APTS. CORP. in NC: $58.2K
- CCM - OAKWOOD MANOR DENISON IA LLC in WI: $46.1K
These LLCs and non-profit corporations execute the ground-level work of federal housing policy. They process federal grants and direct payments to subsidize rent and maintain community facilities.
Educational Institutions and Local Governments
Higher education institutions frequently receive federal grants for research and student assistance. UNIVERSITY OF EVANSVILLE and THE COLLEGE OF IDAHO INC secured FY2026 funding directly from federal agencies.
Specialized schools also participate in federal funding programs. THE LABORATORY INSTITUTE OF MERCHANDISING, INC. in NY processed $3.1K in federal awards this fiscal year.
Local municipal governments process direct federal payments for community services. The COUNTY OF TRINITY in CA is an active recipient, securing federal dollars to fund county-level operations. Civic organizations like THE SILENT WORKERS CIRCLE FRANKFORT, KENTUCKY OF THE INTERNATIONAL ORDER OF THE KINGS DAUGHTERS AND SONS also received $158.2K in KY to support community initiatives.
Quick Takeaways on FY2026 Federal Spending
- CMS dominates the ledger: The agency has already obligated over $1.0T in FY2026, averaging an incredible $318.8M per award.
- Transportation requires massive capital: DOT sub-agencies account for tens of billions in infrastructure obligations, led by the FHWA's $55.7B.
- Railroad spending is highly concentrated: The Federal Railroad Administration averages $52.8M per award, indicating massive, single-target infrastructure investments.
- Recipients are highly localized: Federal funds bypass federal hubs to land directly with local entities like LAKE UNION DRYDOCK COMPANY and regional housing authorities.