FY2026 Federal Spending: USDA Obligates $121.3B, Lockheed Martin Lands $7.4B Contract
Federal agencies are already pushing hundreds of billions of dollars through the FY2026 procurement pipeline. Early data reveals a concentrated flow of capital toward agriculture, national defense, and specialized aerospace manufacturing.
Bottom line: The Department of Agriculture dominates agency-level spending early in FY2026 with $121.3B in obligations, while defense and aerospace contractors are securing the largest single-award contracts, led by Lockheed Martin's $7.4B defense agreement.
This breakdown examines the top federal agency spending in 2026 and the largest individual contracts awarded in the current fiscal year. All figures and contract descriptions are sourced directly from USAspending.gov.
Top Federal Agencies by Obligated Funds in FY2026
The federal discretionary budget dictates how agencies distribute funds across grants, loans, and direct contracts. In FY2026, the Department of Agriculture (USDA) is operating at a massive scale, processing over a million individual awards.
Here is the thing: USDA obligations in 2026 completely dwarf other civilian agencies in the current dataset. The agency has obligated $121.3B across 1,081,300 separate awards.
The Department of Labor (DOL) follows as a distant second among this group, obligating $7.7B through 909 awards.
FY2026 Agency Obligation Totals
The table below outlines the total obligated funds and award counts for key federal agencies in FY2026.
| Agency | Total Obligated (FY2026) | Award Count |
|---|---|---|
| Department of Agriculture | $121.3B | 1,081,300 |
| Department of Labor | $7.7B | 909 |
| U.S. International Development Finance Corporation | $261.0M | 115 |
| National Endowment for the Humanities | $240.2M | 816 |
| Government Accountability Office | $51.3M | 112 |
| Peace Corps | $28.3M | 53 |
| Appalachian Regional Commission | $24.2M | 25 |
| American Battle Monuments Commission | $861.2K | 1 |
| United States Chemical Safety Board | $125.0K | 5 |
Source: USAspending.gov (FY2026 obligations)
These figures represent a snapshot of the FY2026 government procurement environment. While the USDA handles high-volume, lower-dollar awards, other agencies focus their budgets on massive, single-award contracts.
Largest Federal Contracts Awarded in FY2026
Most federal contracts fall well below the $1 million threshold. However, the largest federal contracts in FY2026 are multi-billion-dollar agreements concentrated in defense, aerospace, and healthcare.
The Department of Defense (DOD) and the National Aeronautics and Space Administration (NASA) are responsible for the two largest single awards in the current fiscal year. Both went to divisions of Lockheed Martin.
Top Single-Award Contracts (FY2026)
| Recipient | Awarding Agency | Amount | State | Industry |
|---|---|---|---|---|
| LOCKHEED MARTIN AERONAUTICAL SYSTEMS SUPPORT COMPANY | Department of Defense | $7.4B | GA | N/A |
| LOCKHEED MARTIN CORP | NASA | $2.87B | LA | GUIDED MISSILE AND SPACE VEHICLE PROPULSION UNIT AND PROPULSION UNIT PARTS MANUFACTURING |
| TRIWEST HEALTHCARE ALLIANCE CORP | Department of Veterans Affairs | $928.0M | AZ | DIRECT HEALTH AND MEDICAL INSURANCE CARRIERS |
| BOLLINGER SHIPYARDS LOCKPORT, L.L.C. | Department of Homeland Security | $921.7M | LA | SHIP BUILDING AND REPAIRING |
| GENERAL MATTER, INC. | Department of Energy | $900.0M | CA | OTHER BASIC INORGANIC CHEMICAL MANUFACTURING |
| THE BOEING COMPANY | Department of Defense | $853.6M | MO | AIRCRAFT MANUFACTURING |
| TRIWEST HEALTHCARE ALLIANCE CORP | Department of Veterans Affairs | $819.7M | AZ | DIRECT HEALTH AND MEDICAL INSURANCE CARRIERS |
Source: USAspending.gov (FY2026 contract awards)
Lockheed Martin Federal Contracts Dominate
Lockheed Martin federal contracts represent the absolute ceiling of government procurement in FY2026. The company's Aeronautical Systems Support Company, based in Georgia, holds a $7.4B obligation from the Defense Contract Management Agency.
NASA also awarded a $2.87B contract to Lockheed Martin Corp in Louisiana. This specific obligation is classified under NAICS code 336415 for guided missile and space vehicle propulsion manufacturing. The contract description specifies the acquisition of external tanks for the space shuttle program.
Major Contracts for Healthcare and National Security in FY2026
Beyond aerospace, the FY2026 federal procurement data shows massive capital outlays for veteran healthcare and maritime security. The Department of Veterans Affairs (VA) and the Department of Homeland Security (DHS) are executing highly targeted, near-billion-dollar obligations.
TriWest Healthcare Alliance Corp
The VA is directing heavy funding toward private healthcare administration. TriWest Healthcare Alliance Corp, operating out of Arizona, secured two of the top seven largest federal contracts in FY2026.
These obligations are structured as monthly express reports for direct health and medical insurance carriers:
- $928.0M obligated for the October 2025 reporting period.
- $819.7M obligated for the February 2026 reporting period.
Combined, these two task orders represent $1.74B in federal healthcare spending flowing to a single contractor within a five-month window.
Bollinger Shipyards and DHS Procurement
The result of DHS procurement strategies in FY2026 is a heavy reliance on domestic shipbuilders. Bollinger Shipyards Lockport, L.L.C. in Louisiana received a $921.7M letter contract from the U.S. Coast Guard.
This contract funds the award of Arctic Security Cutters. It falls under NAICS code 336611 for ship building and repairing, reinforcing Louisiana's position as a primary hub for federal maritime and aerospace manufacturing in 2026.
Significant Energy and Aerospace Obligations in FY2026
The Department of Energy (DOE) and the Department of Defense are also executing massive specialized manufacturing contracts. These FY2026 obligations target nuclear fuel capacity and foreign military sales.
General Matter, Inc. and HALEU Production
The DOE is aggressively funding domestic nuclear capabilities. General Matter, Inc., based in California, received a $900.0M task order in FY2026.
The purpose of this contract is highly specific:
- Establish new annual domestic commercial High-Assay Low-Enriched Uranium (HALEU) capacity.
- Begin production of HALEU UF6.
- Facilitate the direct purchase of this material by the DOE.
This obligation is categorized under NAICS code 325180 for other basic inorganic chemical manufacturing. It represents one of the largest single energy investments in the FY2026 procurement cycle.
The Boeing Company and Foreign Military Sales
Foreign Military Sales (FMS) continue to drive high-dollar DOD obligations. The Boeing Company secured an $853.6M contract from the Department of the Air Force in FY2026.
Operating out of Missouri, Boeing will execute the F-15 Korea K+ FMS program. This falls under NAICS code 336411 for aircraft manufacturing, adding to the heavy concentration of aerospace spending in the current fiscal year.
Quick Takeaways: FY2026 Government Procurement
- USDA volume: The Department of Agriculture is processing the highest volume of awards in FY2026, obligating $121.3B across more than a million individual actions.
- Defense spending: Lockheed Martin holds the single largest FY2026 contract with a $7.4B DOD obligation in Georgia.
- Healthcare concentration: The VA obligated $1.74B to TriWest Healthcare Alliance Corp across just two task orders for medical insurance administration.
- Energy infrastructure: The DOE committed $900.0M to General Matter, Inc. to establish domestic HALEU nuclear fuel production.
- Geographic distribution: Louisiana secured two of the top seven largest contracts in FY2026, totaling $3.79B across NASA aerospace manufacturing and Coast Guard shipbuilding.