The Federal Government Is Spending-Here’s How to Position for FY26 Funding Now

Federal Sales Planning
Written By Harvey Morrison

Author: Harvey Morrison

If you're in AI, cybersecurity, infrastructure, or defense tech and still sitting on the sidelines of the federal market, now is the time to move. A recent Financial Times article called attention to the surge of interest and investment in defense tech start-ups. But the trend goes far beyond drones and weapons systems. It’s a signal that the U.S. government is actively buying, planning, and modernizing and the window for engaging in FY 26 is already open.

The Big Picture: Government Investment Is Growing

While commercial markets may be tightening, the U.S. federal government continues to expand its tech spending. Early indicators from the FY 26 budget reveal a continued focus and in many areas, increased funding for:

  • Artificial Intelligence

  • Infrastructure modernization to support AI at scale

  • Cybersecurity and post-quantum encryption

  • Defense innovation and dual-use technologies

Agencies are under pressure to modernize quickly whether through automation, AI-driven analytics, Zero Trust security, or readiness for quantum threats. And they’re looking for partners who can help them execute.

Why the Timing Matters: FY 26 Starts in October

The federal fiscal year starts October 1st , and agencies are actively shaping their acquisition plans now. That means the next two months are critical. Vendors who wait until January or March to get organized will be too late to influence how funds are spent.

To succeed in this market, you need more than a great product you need a plan that aligns with:

  • Agency specific mandates and initiatives

  • Available funding streams and contract vehicles

  • Key system integrator and distribution partnerships

  • A clear value proposition around ROI, security, and mission impact

 

Where Marion Square Fits In

At Marion Square, we help high-growth commercial tech companies especially those new to the federal market translate their commercial success into public sector traction. Whether you’re an AI platform, a cyber vendor, or an infrastructure solution provider, we help you:

  • Map the right agencies, programs, and priorities

  • Shape a tailored go-to-market and sales strategy

  • Position around budgeted programs (not just generic capabilities)

  • Plug into the right ecosystem of partners and contracts

 

Ready to Compete for FY 26? Let’s Talk

If you want to take advantage of the federal government’s accelerating investment in technology, especially across AI, cyber, infrastructure, and defense the time to act is now. FY 26 dollars start flowing in October, but success depends on planning, positioning, and partnerships built today.

Marion Square can help you get there.

Reach out to start a conversation.

Harvey Morrison
Next

FY26 Budget Status: What You Need to Know