Tight Budgets and High Stakes: Strategies for GovCon Growth

Originally published in TechBullion on August 1, 2025

The government contracting (GovCon) environment in the U.S. has never been simple, but in today’s climate of shifting political priorities, it’s more like threading a needle in a windstorm. While the broader economy sends mixed signals, specific federal budgets are rising, particularly in defense, infrastructure and artificial intelligence. For contractors who know where to look and how to negotiate, opportunities still abound.

Opportunity in a Shifting Field

With a new administration and ongoing Department of Defense (DOD) activity reshaping priorities, contractors must reframe how they evaluate opportunities and plan for growth. Kevin Brancato, SVP of Product Strategy at TechnoMile, notes the significance of a surge in AI-focused funding: “There’s almost $8 billion directly called out for various artificial intelligence initiatives—in shipbuilding, unmanned systems, cyber, auditing and microelectronics. This is likely not money going to OpenAI or Anthropic directly; it’s funding DoD partnerships with contractors to build mission-specific systems.”