FY2026 Federal Spending: Veterans Compensation Leads Assistance, Kiewit Infrastructure Tops Contracts
Federal agencies have already obligated billions in FY2026 across thousands of assistance programs and procurement contracts. The data reveals a massive concentration of capital flowing toward veteran support systems and emergency infrastructure repair. Most federal contracts fall under the $1 million mark, but a select group of vendors secured nine-figure awards right out of the gate.
Bottom line: The Department of Veterans Affairs dominates FY2026 federal assistance with $94.97B obligated for disability compensation, while disaster recovery and aerospace upgrades drive the largest single procurement contracts.
Here is exactly where the largest blocks of federal funding are going in the current fiscal year, based on official USAspending.gov records.
Top Federal Assistance Programs in FY2026
Federal assistance programs—which include grants, direct payments, and insurance—distribute capital directly to individuals, businesses, and local governments. In FY2026, direct payments for veterans eclipse all other assistance categories by a wide margin.
Here are the largest federal assistance programs by FY2026 obligations:
| CFDA | Program Title | Total Obligated | Award Count |
|---|---|---|---|
| 64.109 | VETERANS COMPENSATION FOR SERVICE-CONNECTED DISABILITY | $94.97B | 19,110 |
| 97.022 | FLOOD INSURANCE | $887.67M | 6,022 |
| 20.933 | NATIONAL INFRASTRUCTURE INVESTMENTS | $787.83M | 91 |
| 66.202 | CONGRESSIONALLY MANDATED PROJECTS | $338.73M | 177 |
| 93.441 | INDIAN SELF-DETERMINATION | $292.74M | 69 |
| 64.031 | LIFE INSURANCE FOR VETERANS | $247.29M | 18,722 |
| 23.003 | APPALACHIAN DEVELOPMENT HIGHWAY SYSTEM | $152.63M | 19 |
| 20.937 | NATIONAL INFRASTRUCTURE PROJECT ASSISTANCE | $135.89M | 4 |
| 93.310 | TRANS-NIH RESEARCH SUPPORT | $134.34M | 75 |
The gap between the top program and the rest of the list is staggering. Veterans Compensation accounts for $94.97B across 19,110 individual awards. The second-largest program, Flood Insurance, obligated $887.67M—less than one percent of the VA's primary compensation program.
Infrastructure also commands a massive share of federal assistance. The National Infrastructure Investments program distributed $787.83M across 91 awards to support regional transportation networks.
Major Federal Contracts Awarded in FY2026
While assistance programs distribute funds broadly, federal procurement contracts concentrate capital into specific private-sector vendors. The largest government contracts in FY2026 focus heavily on heavy construction, aerospace, and specialized IT infrastructure.
Here are the top single-award federal contracts obligated in FY2026:
| Recipient | Awarding Agency | Amount | State | NAICS Code |
|---|---|---|---|---|
| KIEWIT INFRASTRUCTURE SOUTH CO | Department of Agriculture | $240.58M | GA | 237310 |
| GULFSTREAM AEROSPACE CORPORATION | Department of Homeland Security | $175.43M | GA | 532411 |
| STRUCTSURE PROJECTS INC | Department of Transportation | $63.87M | MO | 236220 |
| ATLANTA GAS LIGHT COMPANY | Department of Homeland Security | $52.12M | GA | 221210 |
| MANHATTAN ASSOCIATES, INC. | Department of Homeland Security | $51.36M | GA | 518210 |
| KEMRON/ARROWHEAD JV, LLC | Environmental Protection Agency | $46.88M | GA | 562910 |
| DLH SOLUTIONS INC | Department of Veterans Affairs | $36.04M | GA | 561210 |
| GEOTAB USA INC | General Services Administration | $25.62M | GA | 334290 |
The single largest FY2026 procurement action went to Kiewit Infrastructure South Co. The U.S. Forest Service obligated $240.58M to the company for a design-build highway reconstruction project in Georgia. The contract specifically targets disaster recovery efforts following Hurricane Helene.
Aerospace leasing secured the second spot. Gulfstream Aerospace Corporation received $175.43M from the U.S. Coast Guard. This contract funds the installation of Starshield systems on specific aircraft serial numbers.
Department of Veterans Affairs Leads Assistance Obligations
The Department of Veterans Affairs operates at a scale that dwarfs most other federal civilian agencies in FY2026. The agency's financial footprint is entirely built on direct support to former service members.
The numbers are highly concentrated. Beyond the massive $94.97B obligated for disability compensation, the VA also distributed $247.29M through its Life Insurance for Veterans program. This secondary program alone generated 18,722 distinct direct payment awards in FY2026.
The VA also utilizes the private sector for operational support. The agency awarded a $36.04M facilities support contract to DLH Solutions Inc. in FY2026. This 12-month bridge contract provides necessary staffing for VA facilities under NAICS code 561210 — Facilities Support Services.
Infrastructure and Remediation Services See Large FY2026 Contracts
Heavy construction and environmental cleanup represent a significant portion of FY2026 federal obligations. The government relies heavily on specialized private contractors to execute these complex, multi-year projects.
Here is the thing: these projects require highly specific industry classifications.
- Highway Construction: Kiewit's $240.58M disaster recovery contract falls under NAICS code 237310 — Highway, Street, and Bridge Construction.
- Commercial Building: The Federal Aviation Administration awarded $63.87M to Structsure Projects Inc. to construct a new Air Traffic Control Tower in Lawton, Missouri. This falls under NAICS code 236220 — Commercial and Institutional Building Construction.
- Environmental Cleanup: The EPA obligated $46.88M to Kemron/Arrowhead JV, LLC for work at the Southside Chattanooga Lead Site. This task order operates under NAICS code 562910 — Remediation Services.
These massive single-award contracts demonstrate how federal infrastructure spending actually moves. Agencies do not pour the concrete themselves; they obligate eight- and nine-figure sums to specialized joint ventures and regional construction firms.
Key Agencies Driving FY2026 Procurement
While the VA dominates the assistance side of the ledger, the Department of Homeland Security (DHS) is a primary engine for large FY2026 federal contracts. DHS sub-agencies executed several of the highest-dollar procurements on record for the current fiscal year.
The Coast Guard's $175.43M Gulfstream contract is the largest, but DHS spending extends deep into utility and IT infrastructure.
The Federal Law Enforcement Training Center (FLETC) awarded $52.12M to Atlanta Gas Light Company. This utility energy-saving contract aims to reduce electricity, gas, and water demand at the FLETC Glynco facility under NAICS code 221210 — Natural Gas Distribution.
Meanwhile, FEMA obligated $51.36M to Manhattan Associates, Inc. This funds the first option year of the Logistics Supply Chain Management System Cloud task order. The work is classified under NAICS code 518210 — Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services.
Other civilian agencies are executing highly specialized IT contracts. The General Services Administration's Federal Acquisition Service awarded $25.62M to Geotab USA Inc. for GSA fleet telematics under NAICS code 334290 — Other Communications Equipment Manufacturing.
Quick Takeaways for FY2026
- Veterans benefits dominate: The VA's $94.97B obligation for service-connected disability compensation is the single largest federal assistance program in FY2026.
- Disaster recovery drives procurement: The largest single contract is a $240.58M award to Kiewit Infrastructure for Hurricane Helene reconstruction.
- DHS spreads its capital: The Department of Homeland Security issued massive FY2026 contracts across aerospace leasing, cloud computing, and utility energy savings.
- Georgia is a major contracting hub: Six of the top eight largest single-award federal contracts in FY2026 went to vendors operating in the state of Georgia.