Federal Agencies Spending $102 Billion on IT: Why Efficiency Demands Resilient Endpoints

Federal agencies are spending $102B on IT in 2025. Learn how resilient, FedRAMP-authorized endpoints can optimize efficiency and strengthen security.

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Federal Agencies Spending $102 Billion on IT: Why Efficiency Demands Resilient Endpoints

Despite a modest increase in year-on-year spending, the US government’s $102 billion federal IT spending plans for FY2025 represent one of the largest technology investments in history1. Federal agencies face mounting pressure to demonstrate tangible returns while strengthening cybersecurity defenses. So, the challenge isn't just about spending more, it's about spending smarter with solutions that deliver both operational efficiency and uncompromising security.

Federal CISOs and CIOs stand at a critical juncture. Executive Order 14028 demands Zero Trust architecture implementation. FITARA scorecards scrutinize IT ROI. Meanwhile, cyber threats have intensified, with 72% of organizations reporting increased cyber risks2 and Chinese-backed cyber espionage operations surging 150% in 2024 alone3.

To address these challenges, federal IT leaders must rethink their approach, moving from reactive management to proactive, resilient endpoint security. Our latest Absolute White Paper explores these imperatives in detail, while the FedRAMP solution sheet demonstrates how robust, compliant endpoint security can transform federal operations without sacrificing protection.

Federal IT Spending Reaches Historic Highs

The Federal IT budget has never been larger, yet there are winners and losers at department and agency levels. What isn’t in doubt, however, is the focus of spending. The government vision for IT calls for modernized, secure services, where user improved user experience and exceptional data insights come as standard.  

Defense agencies The Pentagon's $14.5 billion cybersecurity budget reflects escalating threats, with strategic investments in Artificial Intelligence and response automation4.

Civilian agencies are investing an additional $13 billion in zero-trust programs and critical infrastructure protection. CISA's budget expansion to $3 billion underscores the government's commitment to cybersecurity4.  

According to the World Economic Forum, 38% of public sector organizations globally reporting insufficient cyber resilience, in contrast to only 10% of medium-to-large private sector organizations2. Investment on this scale is necessary for federal organizations to keep pace with the private sector and prevent departments and agencies being the easy target.  

The Hidden Costs of IT Inefficiency

The Government Accountability Office reports that federal agencies spend over $100 billion annually on IT, with the majority covering operational costs and legacy system maintenance1. This spending pattern reveals a troubling reality: agencies are trapped in cycles of reactive management rather than strategic modernization highlighted in our white paper.

IT inefficiencies permeate across functional departments with manual processes consuming valuable resources, 89% of federal HR leaders reporting that legacy tools hinder mission effectiveness2. These inefficiencies compound cybersecurity vulnerabilities, creating blind spots that nation-state actors eagerly exploit. A recent study identified 11 departments running IT systems so out of date that they posed risk to fundamental government responsibilities including national security, public health and the economy5.  

The Cybersecurity Challenge Intensifies

Federal agencies operate in an increasingly hostile cyber environment. Recent intelligence reports highlight sophisticated attack vectors targeting critical infrastructure, including water facilities, communications networks, and energy systems2.

Nation-State Threats Escalate

China's cyber espionage operations increased by as much as 300% against critical industries in 20246. These attacks don't just target government networks—they aim to disrupt supply chains, compromise sensitive data, and undermine national security infrastructure. The complexity of these threats requires equally sophisticated defenses.

Traditional endpoint management solutions fail when confronted with advanced persistent threats. Software-based security tools can be disabled, corrupted, or bypassed entirely. Federal agencies need endpoint protection that operates beyond the reach of attackers: embedded at the firmware level where it cannot be compromised, as documented in our FedRAMP solution sheet.

Dropping the SBOM as Supply Chain Vulnerabilities Multiply

Supply chain attacks represent a significant threat vector, with the US Government Accountability Office (GAO) citing lack of global supply chain monitoring as a major reason why the National Cybersecurity Strategy lacks strength7. Federal agencies depend on extensive networks of contractors and suppliers, each potentially introducing vulnerabilities. The 2024 CrowdStrike outage demonstrated how single points of failure can cascade across entire ecosystems. A single faulty update disrupted airlines, banks, healthcare providers, and government operations globally, causing an estimated $5 billion in losses8. CISA, NSA and international partners shared a vision for the use of SBOMs (Software Bill of Materials) in September 20259, but knowing the coding DNA of any single component is still not enough. Federal agencies need resilient solutions that maintain functionality even when other security tools fail.

FedRAMP Authorization: The Gold Standard for Federal Security

FedRAMP Moderate Impact Level authorization represents the highest standard for cloud security in government environments. This certification requires extensive security controls, continuous monitoring, and regular assessments that commercial solutions don't provide.

Absolute's FedRAMP-authorized solution delivers:

  • Unbreakable digital tether to every endpoint through firmware-embedded technology—across 600+ million devices
  • Continuous compliance monitoring across distributed federal workforces
  • Self-healing security controls that automatically restore compromised applications
  • Real-time threat detection and automated response capabilities

Consult the official FedRAMP solution sheet for an in-depth look at these advanced capabilities, specifically designed for federal compliance and resilience.

Firmware-Embedded Resilience

Absolute Security operates at the firmware level in over 600 million devices worldwide. This embedded approach creates an unbreakable connection that persists even when other security tools are disabled, corrupted, or compromised, ensuring visibility and control that sophisticated attackers cannot defeat.

Unlike software-based solutions that operate within the operating system, firmware-embedded technology functions independently. It maintains connectivity even when devices are offline, degraded, or under active attack, as detailed in the white paper. This resilience is critical for agencies who must respond to threats and maintain security standards regardless of compromise attempts.

Transforming Federal IT Operations Through Automation

The FedRAMP solution doesn’t just strengthen security—it revolutionizes operational efficiency through intelligent automation and proactive threat management.

Automated Compliance Monitoring

Federal agencies face complex regulatory landscapes with overlapping requirements across multiple frameworks. Manual compliance checking consumes valuable resources while introducing human error risks. Automated compliance monitoring ensures continuous adherence to federal security policies without manual intervention.

The solution tracks device configurations, software installations, encryption status, and security policy compliance in real-time. Automated alerts notify administrators of compliance drift before violations occur, enabling proactive remediation rather than reactive fixes—all features highlighted in the FedRAMP solution sheet.

Self-Healing Endpoint Capabilities

Traditional IT management requires manual intervention when security tools fail or become compromised. The FedRAMP solution automatically detects and restores mission-critical applications including VPN clients, endpoint detection and response tools, and encryption software. This self-healing capability eliminates service desk tickets, reduces downtime, and ensures security controls remain operational during attacks.

Proactive Threat Detection

Advanced threat actors often operate undetected within federal networks for extended periods. The FedRAMP solution provides continuous endpoint monitoring that identifies suspicious activities before they escalate into major incidents. Behavioral analytics detect anomalous device usage, unauthorized software installations, and potential data exfiltration attempts. Automated response capabilities can isolate compromised endpoints, preserve evidence, and prevent lateral movement within federal networks. These features are detailed in both the white paper and the FedRAMP solution sheet.

Geofencing and Remote Remediation for Distributed Workforces

Federal agencies increasingly operate distributed workforces across multiple locations and security environments. The FedRAMP solution delivers comprehensive visibility and control regardless of endpoint location or network connectivity.

Geographic Boundary Enforcement

Sensitive federal data requires protection based on physical location and authorized usage zones. Geofencing capabilities automatically detect when devices move beyond approved boundaries and trigger appropriate security responses.

Administrators receive instant alerts when devices enter restricted or unauthorized zones. Automated policies can restrict network access, encrypt sensitive data, or initiate remote wipe procedures based on federal security protocols.

Remote Device Management

When federal devices are lost, stolen, or compromised, rapid response capabilities minimize data exposure and security risks. Remote management functions enable administrators to freeze device operations, wipe sensitive data before it can be compromised, track device location for recovery efforts, and restore trusted configurations after security incidents. These remote management capabilities operate independently of the operating system and cannot be disabled by attackers or malicious insiders.

Data Discovery and Protection for Sensitive Federal Information

Federal agencies handle vast amounts of sensitive data: health records, social security numbers, classified documents. The FedRAMP solution provides comprehensive data discovery and protection capabilities, tailored to federal requirements.

Automated data classification identifies and protects sensitive data across endpoints based on content analysis, file patterns, and regulatory requirements. Administrators gain visibility into data usage trends, distribution, and potential exposure risks, with automated policies ensuring appropriate safeguards for high-value information.

Lifecycle management extends this protection, ensuring that data is securely wiped when devices are decommissioned or reassigned, preventing leakage and meeting federal disposal standards.

Integration with Federal Security Infrastructure

The FedRAMP solution seamlessly integrates with existing federal SIEM and ITSM platforms and requires no extensive infrastructure changes. Native connectivity with Forescout, ServiceNow, and Splunk extends endpoint visibility and control across the security ecosystem. Automated workflows trigger rapid, policy-aligned responses.

Support for Zero Trust architectures (an Executive Order 14028 mandate) is built in, with continuous verification and behavioral monitoring enabling agencies to operationalize never-trust, always-verify security models without affecting efficiency.

The Workforce Skills Gap—A Public Sector Reality

The skills challenge facing federal IT is acute: 49% of public sector organizations report lacking the cybersecurity talent needed to meet their goals2. The cyber skills gap widened by 8% from 2024 to 2025, with only 14% of organizations expressing confidence in their current cyber workforce. In the public sector, the skills shortage jumped 33% in the same period2.

The Economics of Federal IT Resilience

Investing in resilient endpoint security delivers measurable returns: reduced incident response costs, improved efficiency, and mission continuity.

Proactive, automated threat detection reduces the dwell time of attackers and the scope of incidents, yielding lower remediation costs and minimized operational impact. Self-healing automation for security controls eliminates many service desk requests, enabling federal IT staff to focus on modernization and mission priorities.

Why the White Paper and FedRAMP Solution Sheet Matter

Our comprehensive federal IT efficiency white paper offers actionable insights for realizing returns on IT investments and sustaining cyber resilience under pressure. The companion FedRAMP solution sheet provides a deep dive into security, compliance, and automation capabilities that set Absolute’s offering apart in the federal context.

Decision-makers can use these resources to benchmark current maturity, evaluate next-generation solutions, and move confidently toward a secure, efficient, and resilient operational future.

Ready to Transform Federal IT Operations?

The convergence of massive IT spending, escalating cyber threats, and efficiency demands requires a new approach to federal endpoint security. Traditional solutions cannot address the sophisticated threats facing government agencies while delivering the operational efficiency that taxpayers demand.

Absolute's FedRAMP-authorized solution provides the resilient foundation federal agencies need to:

  • Strengthen cybersecurity without compromising operational efficiency
  • Automate compliance monitoring across distributed workforces
  • Reduce incident response costs through proactive threat management
  • Ensure mission continuity during cyberattacks and system failures

Download our new white paper: Optimizing IT Efficiency Without Compromising Cybersecurity for in-depth strategies, ROI advice, and key implementation lessons. Review the FedRAMP solution sheet to compare features and see compliance in action. Contact our federal solutions team for a customized evaluation.

Transform your federal IT operations with the only endpoint security solution that cannot be compromised, disabled, or defeated.