The federal technology market is bifurcating: an AI-driven surge concentrated almost entirely at the Department of Defense, and a steadily growing civilian IT budget focused on modernization and cloud consolidation. Here's where the money is and what it means for contractors.

The headline number is $74 billion, but the real signal is in the reallocations. We break down which agencies are growing their IT budgets, where modernization dollars are concentrating, and what it means for your capture plan.