The Department of Government Efficiency has cancelled or reduced over $41.5 billion in federal contracts across 24 agencies. Track every cancellation, deobligation, and re-solicitation as it happens — before your competition does.
Agency-by-agency breakdown of contract cancellations, deobligated funds, and portfolio impact. Data aggregated from USASpending.gov and FPDS transaction records.
| Agency | Contracts Cancelled | $ Value Deobligated | % of Portfolio | Trend |
|---|---|---|---|---|
Department of Defense (DOD) | 2,847 | $18.3B | 7.2% | Increasing |
Health & Human Services (HHS) | 1,234 | $8.7B | 14.8% | Increasing |
U.S. Agency for Intl. Development (USAID) | 892 | $6.1B | 68.4% | Increasing |
Environmental Protection Agency (EPA) | 643 | $3.2B | 41.3% | Stable |
Department of Education (ED) | 518 | $2.8B | 52.1% | Increasing |
Department of Energy (DOE) | 412 | $2.4B | 11.6% | Stable |
* Data is illustrative and based on publicly available federal spending trends as of February 2026. Actual figures are updated in real-time within the Fed-Spend platform. Sources: USASpending.gov, FPDS, SAM.gov.
Every contract cancellation creates a ripple effect. Here's the actionable intelligence you need to navigate the disruption — and find the opportunities others miss.
T4C terminations have increased 340% since DOGE reviews began. Contractors with active contracts should review termination clauses and prepare settlement claims. Many T4C actions include partial deobligation, not full cancellation.
Approximately 35-40% of cancelled contracts are re-solicited within 12-18 months with modified scope. Track these re-competes through Fed-Spend's Recompete Radar to get 180-day advance notice before they hit SAM.gov.
Surviving contracts are seeing ceiling reductions averaging 22%. Monitor your active contracts for modification actions that signal funding reductions. Set up alerts for contract modifications by PIID.
As agencies restructure, incumbent knowledge gaps emerge. Contractors with cross-agency experience or niche NAICS expertise are positioned to capture displaced work at reduced rates.
Agencies still face 23% small business goals. As large contracts are broken up, new 8(a), HUBZone, and SDVOSB set-asides are being created. The number of small business opportunities is actually increasing in some agencies.
Critical services can't simply stop. Watch for bridge contracts, sole-source justifications, and undefinitized contract actions (UCAs) that emerge when cancellations affect essential functions.
While competitors scramble to check USASpending.gov manually, Fed-Spend gives you automated intelligence on every cancellation, deobligation, and re-solicitation as it happens.
What federal contractors need to know about DOGE contract cancellations and deobligated funds.
The Department of Government Efficiency (DOGE) is a federal initiative launched in 2025 to identify and eliminate wasteful government spending. DOGE reviews federal contracts, grants, and agency budgets to recommend cancellations, reductions, and restructuring. Since its inception, DOGE has recommended the cancellation or reduction of over $41.5 billion in federal contracts across 24 agencies. Its impact is concentrated in consulting, IT services, research grants, and international development contracts — though virtually every federal spending category has been affected to some degree.
USAID has been the hardest hit in proportional terms, with approximately 68% of its contract portfolio impacted by cancellations or reductions. The Department of Education (52%), EPA (41%), and DOE (12%) have also seen significant cuts. In absolute dollar terms, the Department of Defense leads with over $18.3 billion in cancelled or reduced contracts, followed by HHS at $8.7 billion. However, DOD's cancellations represent only 7.2% of its massive portfolio. The most common contract types being cut include professional services, IT modernization programs, and research/analysis contracts.
There are several ways to track DOGE-related cancellations: (1) USASpending.gov — search for contracts with negative obligation adjustments or 'terminated for convenience' status; (2) FPDS — look for modification records showing deobligated amounts; (3) SAM.gov — monitor for re-solicitations of previously cancelled work. Fed-Spend aggregates all three data sources automatically and lets you set up real-time alerts when contracts in your NAICS codes or target agencies are cancelled. Our Recompete Radar also predicts which cancelled contracts are likely to be re-solicited.
Many are not permanent. The federal government cannot simply stop performing essential functions. Historical data from previous cost-cutting initiatives shows that 35-40% of cancelled contracts are re-awarded within 12-18 months, often with modified scope, reduced ceiling values, or restructured procurement vehicles. Some contracts are split into multiple smaller awards, frequently with small business set-aside designations. The key for contractors is identifying which cancellations will generate re-solicitations — and positioning early. Fed-Spend's Recompete Radar tracks these patterns automatically.
The impact on small businesses is nuanced. While some set-aside contracts have been cancelled, agencies are still bound by statutory small business contracting goals (23% of prime contract dollars for small business, 5% for 8(a), 3% for HUBZone, 3% for SDVOSB, and 5% for WOSB). As large bundled contracts are cancelled and restructured, agencies often break them into smaller awards with set-aside designations to meet their goals. This restructuring has actually increased the number of small business opportunities at agencies like DOD and HHS, even as overall spending decreases.
Deobligated funds appear as negative obligation amounts in USASpending.gov transaction records and as modification types in FPDS. Tracking them manually requires monitoring thousands of contract modification records daily. Fed-Spend automates this by aggregating deobligation data across all federal agencies, categorized by NAICS code, agency, and contract type. You can set up alerts to be notified when contracts in your target areas show deobligation activity — giving you early warning of potential re-solicitations and competitor displacement opportunities.
While 6,500+ contracts have been cancelled, over 2,300 are expected to be re-solicited. The contractors who win that work will be the ones tracking it now — not the ones who find out when it hits SAM.gov.
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