Eye on Policy

The federal budget process, in theory anyway, runs roughly in parallel with the major league baseball season. Right around Opening Day, some sort of proposal issues from the Administration.

Now, a month or so in, Congress, such as it is, hasn’t spent much time thinking about its primary responsibility: passing a budget for fiscal 2027 by September 30th, the day after the MLB post season starts.

Don’t laugh. Of course, the stasis on the Hill will continue. A few corners of the government were only funded days ago for fiscal 2026.

But anyone who runs a federal program or sells to the government ought to get familiar with what the White House has proposed. By now, you’ve no doubt heard about the $1.5 trillion request for the Defense Department—that’s just about half again more than available to it this year.

The Trump Administration is looking for a $1.15 trillion appropriation. The rest would come from, in the White House’s words, “additional mandatory resources through reconciliation for critical Administration priorities.” That comes to some $350 billion just for DoD, just for fiscal 2027.

High among the priorities lies reinvigorating the defense industrial base. The administration didn’t put it this way, but DoD is low on munitions after Iran, while the longstanding constraints on shipbuilding continue. Plus, as drones seem to represent the next mainstream war technology, the Pentagon wants to tap private sector innovation in this still-burgeoning sector.

Analysis by the Center for Strategic and International Studies shows a roll-up to $1.5 trillion in discretionary spending by Defense, and another $38 billion in so-called mandatory spending. Defense spending each year is always unprecedented, but if the Administration has its way, next year will be distinctly unprecedented in its level of spending growth.

Just what would the budget buy? A White House fact sheet lists troop pay raises as a high priority. Of greater interest to contractors and what will occupy Defense Department buyers: resupply of a dozen critical munitions, the Golden Dome missile defense complex of systems, critical minerals and their supply chains, and 34 new Navy ships.

As Defense Secretary Pete Hegseth testified last week, refurbishing and modernizing the co-called nuclear triad of planes, submarines and land-based missiles.

Despite the ongoing dispute with Anthropic, the Pentagon is still committed to operational artificial intelligence. Also last week DoD signed agreements with seven AI companies “to deploy their advanced AI capabilities on the Department’s classified networks for lawful operational use.”
At the same time, the Administration wants 10% less for the civilian side of government. Exceptions include more for law enforcement, air traffic control and Veterans Affairs. Among the big-ticket items for VA: Continued spending on its electronic health records system.

Admiring the absolute dissolution of the budget process has become a routine parlor game. Federal business has always possessed an element of unpredictability. But as it slides even deeper into the political paralysis, it becomes a serious problem for federal executives trying to plan programs and federal sales organizations trying to maintain continuity of business.

Still, the standard tactics remain useful:

• Make the case on the Hill for your program. Federal career executives can’t lobby for budget priorities, but contractors can. The current in-crowd listens to business more than to its own workforce.
• Program managers might consider staying close to their contractors, within bounds, to indirectly lobby for continuity.
• Contractors must keep a close eye on the constant changes in agency leadership. Keep in mind that new appointees likely know less about their agencies than you do. Keep the information respectful. But keep it flowing.

Reliable face at the GSA

Sometimes, a familiar and knowledgeable face comes to the forefront of the government.

Case in point: Laura Stanton, recently named acting commissioner of the Federal Acquisition Service at the General Services Administration. Commissioner Josh Gruenbaum has left.

Stanton is a nearly 30-year veteran of GSA. She oversaw the information technology category before becoming deputy FAS commission a year ago. If you’ve ever spoken with Stanton, you know how knowledgeable and approachable she is.

Contractors and agencies alike will welcome that bit of continuity. FAS has had a whirlwind of activities that still need to settle in. For example, last fall the Office of Centralized Acquisition Services established to vacuum up programs such as the NASA SEWP and the NIH CIO-SP governmentwide acquisition contracts. Notably, Tom Meiron, another long-time GSA manager, heads up OCAS. Soon to depart from the government, though, is the legendary Joanne Woytek, for whom the massively successful SEWP has been a sort of opus.

GSA is also part of the team that rewrote the Federal Acquisition Resolution. It is unclear whether this effort streamlines or simplifies anything. GSA’s OneGov effort has established deep discount contracts with a bunch of companies that sell common products across the government, prominent companies like ServiceNow, Adobe and PaloAlto Networks.

In other words, Stanton—whom one hopes will become permanent FAS commissioner—has a lot cookin.’ She has history, she knows her stuff, and she listens.