FedBiz'5

The 2025 Stopgap Shake-Up: Winners, Losers, and What to Do Next

• Fedbiz Access • Season 4 • Episode 62

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In this episode of FedBiz'5, host Bobby Testa breaks down the recently signed stopgap funding bill and what it means for government contractors heading into the rest of Fiscal Year 2025.

The stopgap bill—signed into law by President Trump on March 15—keeps the government funded through the end of September 2025. But while the total budget may look similar to last year, a closer look reveals major changes in how those dollars are being allocated. With defense spending seeing a $6 billion increase and non-defense discretionary funding dropping by $13 billion, the impact across different sectors is already being felt.

Bobby walks you through a sector-by-sector breakdown, highlighting which industries are likely to thrive and which ones need to pivot quickly. From defense and aerospace (big winners), to construction, IT services, healthcare, and education (more mixed or at risk), this episode delivers actionable insights you can use to adjust your contracting strategy today.

You'll also learn:

  • Why Contracting Officers are more overwhelmed than ever—and what that means for small businesses
  • Why proactive marketing isn’t optional anymore—it’s essential
  • How socio-economic certifications still provide a competitive edge, especially in a tighter funding environment
  • Why FedBiz Access’s MatchMaker subscription might be the exact strategy, research, and marketing tool your business needs right now

If you're a government contractor—or thinking about entering the market—this episode is packed with must-know info to help you stay ahead of the curve.

Don’t wait for opportunities to find you. Learn how to position your business for success in the face of shifting federal priorities.

Stay Connected:

Bobby Testa: My name is Bobby, and I work with small businesses in the Government Marketplace. You're listening to FedBiz5. Get informed, get connected and get results on everything government contracting.

All right, and welcome to another episode of FedBiz5. Your quick, actionable dive into the world of government contracting. I'm your host, Bobby Testa, and today we're talking about something that just hit the books. It's the stopgap funding bill signed by President Trump on March 15. 

Now I know stop gap funding bill, it doesn't exactly scream excitement, but hang with me. This new legislation could seriously affect where the money's flowing for the rest of the fiscal year, and if you're in the government contracting space, that means opportunity in some sectors and potential challenges in others. So let's break it down sector by sector so you can figure out how to adjust your strategy and stay ahead, but first, I'll give a quick recap of the bill. So here's the skinny. 

The bill funds the government through the end of September of 2025

Defense spending is up to the tune of about $6 billion

Non defense discretionary spending is down by about $13 billion

 So the overall budget numbers look similar to last year, but the reshuffling underneath has real consequences for different industries. So who's winning and who's feeling the squeeze? Let's go sector by sector to see where your business might land. 

First up is going to be defense and aerospace. Good news here, this sector is the big winner. With that $6 billion increase, we are likely to see more defense projects, procurement of new tech and modernization efforts if you're in military manufacturing or aerospace, now is the time to lean in. 

Next up is going to be construction. This one's a mixed bag. Defense related construction could see a bump, but civil projects that aren't tied to defense, they might be delayed or scaled back. So keep an eye on what types of bids you're chasing.

Next is professional, scientific and technical services. This sector might feel a bit of a crunch. Less non defense funding means fewer contracts for things like consulting, research and other specialized services, unless they're tied to defense, of course.

 Next up is going to be health care and social assistance. These are also in the danger zone. Funding may tighten for public health programs and social support services. If your bread and butter is in these areas, it may be time to explore diversifying. 

Next up is IT services. There's a bit of a mixed impact here defense. It that's going to stay strong, but it projects for civilian agencies, they could face cuts. So again, the pivot toward defense might make sense. 

Next up is education services, and this is likely to take a hit as well. Reduced spending could slow down workforce development programs, training contracts and other educational initiatives. 

Next up is going to be transportation and warehousing, another one that might tighten up infrastructure and logistics tied to non defense efforts could be scaled back due to budget cuts. 

And lastly, is going to be environmental services. Environmental and sustainability projects are at risk here. Less funding means fewer contracts for conservation, renewable energy and similar work. 

So what should you do? This kind of funding shift means you've got to stay smart and flexible. Here are a few strategies that we recommend. 

First, diversify if you've been focused mostly on non defense contracts, now is a great time to explore what's available in the defense sector. The demand is rising, and there's less risk of a spending freeze there. 

Second, get competitive. I can't stress that enough fewer dollars means more competition. Your proposal, it has to stand out focus on value, performance, history and cost efficiency, and if you need to help refining your pitch, that's something we do every day. 

Third, lean into market research. This is a huge one. The better you understand what agencies are spending and where the trends are going, the better position you'll be. And look, if you're only using free tools for this, like you know, sam.gov or FPDS, you're not seeing the full picture. Our FedBiz365 platform gives you real time insights into buyer behavior, upcoming opportunities, even those that aren't publicly posted yet. You can track competitors, forecast agency budgets and fine teaming partners, that kind of Intel is gold right now! 

Fourth, stay compliant and efficient with the spotlight on spending. Compliance is everything. Make sure your SAM and DSBS profiles are optimized, your certifications are up to date, and you've got your paperwork ready to go. 

And fifth, bring innovation to the table. Federal agencies are always looking for smart tech forward solutions, especially if they help stretch limited budgets. If you've got something unique highlight that in your proposals. 

So yeah, the stopgap funding bill, it's a bit of a shake up. But it's not all doom and gloom. For sectors like defense and defense adjacent industries, it's full steam ahead. For others, it's about adapting, refocusing and becoming strategic. And if you're not sure how to pivot or where your business fits in this new landscape, we've got your back. 

The team at FedBiz Access has helped 1000s of businesses navigate federal funding shifts for over 24 years, whether it's getting certified or optimizing your NAICS codes, creating a killer capability statement, or even getting in front of the right contracting officers. We're here to help go ahead and schedule a complimentary consultation with a FedBiz specialist. We'll walk you through your options and help you figure out your next move. 

The stopgap bill may buy time, but smart federal contractors don't wait. They prepare. Stay Ahead, stay informed and stay winning. Got a question or a topic you want us to tackle? Let us know until next time. Keep your strategy sharp and your contracts flowing. 

Outro: Thank you for listening to the FedBiz5, where you get informed, get connected and get results on everything government contracting. Today's podcast has made courtesy of FedBiz Access. Government Contracting Made Simple. Visit them at FedBizAccess.com where you can find all the FedBiz5 podcasts, related blogs, government contracting, news and, of course, information on the various products and services that can assist your business in becoming visible to the government. Buyers, FedBiz Access can be reached by calling them at (888)-299-4498.