SLED Contracting Statistics 2026: State, Local, and Education Procurement Numbers

SLED Contracting Statistics 2026: State, Local, and Education Procurement Numbers

The state, local, and education (SLED) market is the most under-reported procurement opportunity in the United States. Federal contracting gets the headlines and the trade-press coverage, but the SLED side of the market is roughly twice as large, runs across more than 90,000 buying entities, and operates on shorter procurement cycles with lower past-performance barriers. For most small and mid-sized contractors, this is where the real opportunity lives.

This report compiles the most-cited 2024–2026 statistics on SLED procurement from primary sources: the U.S. Census Bureau, the National Association of State Budget Officers (NASBO), the National Association of State Procurement Officials (NASPO), the National Center for Education Statistics (NCES), NACUBO, NASCIO, the National Association of Counties (NACo), Gartner, and the published financial reports of the major cooperative purchasing programs. Where a number could not be verified to a primary source, we omitted it.

If you are new to this market, start with our overview of what SLED means in sales and procurement and our SLED contracts guide. For the federal companion to this analysis, see our government contracting statistics report.

Quick Answer

The SLED market is $1.5 trillion+ in annual procurement spending spread across more than 90,000 government and education entities. State governments spent over $3 trillion in fiscal 2024 (NASBO), K-12 public schools spent an estimated $946.5 billion in 2023 (Reason Foundation analysis of NCES data), and Gartner forecasts U.S. state and local enterprise IT spending will reach $125.4 billion by 2026. Cooperative purchasing programs added another $35B+ in flow-through volume across Sourcewell, OMNIA Partners, and NASPO ValuePoint.

The Most-Cited Stats (At-a-Glance Summary)

These are the single-sentence statistics most likely to be quoted by journalists, analysts, and industry writers. Each figure is sourced and verified.

• Total state government spending hit $3 trillion for the first time in fiscal 2024, growing 6.2% year over year (NASBO 2024 State Expenditure Report).
• State general fund spending totaled $1.13 trillion in fiscal 2023 and was projected at over $1.26 trillion in fiscal 2025 (NASBO Fall 2024 Fiscal Survey of States).
• There are more than 90,000 local governments in the United States, including 3,031 counties, 19,522 municipalities, 16,364 townships, 38,542 special districts, and 12,884 independent school districts (U.S. Census Bureau, 2017 Census of Governments).
• U.S. K-12 public schools spent an estimated $946.5 billion in 2023, with the most recent official NCES figure of $767.8 billion in current expenditures for FY 2022 (NCES, May 2024; Reason Foundation K-12 Spotlight 2025).
• Sourcewell reported $5.85 billion in cooperative contract sales in FY24, a 15.5% increase over $5.06B in the prior year (Sourcewell November 2024 Financial Summary).
• OMNIA Partners manages over $30 billion in annual spend through its competitively solicited public-sector contracts (OMNIA Partners, 2025).
• U.S. state and local government enterprise IT spending will reach $125.4 billion by 2026 (Gartner U.S. State and Local Government Overview, 2024).
• 82% of state CIO organizations are using generative AI tools in 2025, up from 53% in 2024 (NASCIO 2025 State CIO Survey).
• U.S. higher education endowments collectively spent $33.4 billion in FY25, with student financial aid the largest category (NACUBO-Commonfund Study, 2026).

Total SLED Market Size

There is no single official source that publishes a unified "SLED procurement total" the way USAspending.gov does for federal contracts. The figure most commonly cited in the industry, roughly $1.5 trillion in annual SLED procurement spending, is built from layered Census, NASBO, NCES, and NACo data. Here is how that figure decomposes:

The "procurement-addressable" share matters because the headline expenditure totals include personnel costs, transfer payments, and debt service that are not contracted out. Procurement of goods and services typically represents 20–33% of an institution's budget, according to NACUBO research on higher education (NACUBO Spendmetric initiative). State and local government procurement officers commonly use a similar 25% rule of thumb, which is consistent with the Census Bureau's reporting that state and local governments collectively disburse more than $4.5 trillion annually.

For comparison, federal contract obligations totaled approximately $700+ billion in FY24, meaning the SLED procurement market is roughly double the size of the federal contracting market. Yet a far smaller share of contractor attention goes there, see our analysis of how to find government contracts for the practical gap.

State Government Procurement

Total state spending hit a record $3 trillion in fiscal 2024, growing 6.2% year over year, according to the NASBO 2024 State Expenditure Report. General fund spending, the discretionary portion most relevant to procurement decisions, was actual $1.13 trillion in FY23 and projected $1.26 trillion+ in FY25, per the NASBO Fall 2024 Fiscal Survey of States.

Top state expenditure categories (FY24, all funds, NASBO):

Procurement governance. Nearly three-fourths of states have a central procurement office with statutory purchasing authority across all areas of procurement within the state, according to NIGP (NIGP, The Impact of Public Procurement). At least 45 states plus D.C. operate procurement preference policies, for in-state vendors, veteran-owned businesses, women- or minority-owned firms, or environmentally sustainable manufacturers.

State procurement priorities. NASPO's 2024 Top 10 Priorities for State Procurement listed Modernizing the Procurement Process as the #1 priority, reflecting an industry-wide shift toward electronic sourcing, supplier portals, and AI-assisted bid evaluation (NASPO 2024 Priorities).

Local Government Procurement

The local government tier is the most fragmented part of SLED, and the most overlooked. The U.S. Census Bureau's 2017 Census of Governments counted more than 90,000 local government entities:

Counties alone "invest nearly $743 billion each year" through 40,000 elected officials and 3.6 million county employees, according to the National Association of Counties. NACo also reports that municipal bonds have funded more than $3.3 trillion in infrastructure investments over the past decade, a figure that translates almost directly into local procurement opportunity for construction, engineering, and infrastructure-services firms.

Special districts deserve specific attention. With 38,542 entities, water districts, transit authorities, fire districts, library districts, port authorities, and more, they represent the largest single category of local government and operate with their own procurement officers and rules. Many small contractors find their first wins here because competition per RFP is structurally lower than at city or state level.

K-12 Education Procurement

K-12 public schools are the single largest sub-segment of the education side of SLED. According to NCES, current expenditures for U.S. public elementary and secondary education totaled $767.8 billion in FY 2022 (NCES, May 2024). More recent estimates from the Reason Foundation peg 2023 spending at $946.5 billion (K-12 Education Spending Spotlight 2025), with EducationData.org estimating $981.6 billion in FY 2024 (EducationData.org).

District structure. There are 13,318 regular school districts in the U.S. as of 2022–23 (NCES Common Core of Data). Each is a separate procurement entity with its own RFPs, board approvals, and vendor lists.

K-12 EdTech spending. The North American K-12 EdTech market reached approximately $28.1 billion in 2023, with global K-12 technology spend forecast to grow at 24%+ CAGR through 2032 (K-12 Dive, 2024). Cybersecurity has moved from a peripheral concern to a top-three procurement priority for districts, driven by ransomware attacks on districts in nearly every state since 2022.

Top K-12 procurement categories (EdWeek Market Brief, 2024):

For a deeper look at how districts buy, see EdWeek Market Brief's School Districts' Top Purchasing Priorities for 2024-25.

Higher Education Procurement

Higher education sits on top of K-12 in the SLED education stack. According to NCES, U.S. degree-granting institutions spent $702 billion (in constant 2021–22 dollars) in 2020–21. NACUBO research shows that procurement of goods and services typically represents 20–33% of an institution's budget, second only to salaries and benefits (NACUBO Spendmetric).

Endowment spending. The most recent NACUBO-Commonfund Study reports that participating U.S. higher education endowments spent a collective $33.4 billion in FY25, up from $30 billion in FY24 and $28.4 billion in FY23 (NACUBO 2026).

Where endowment dollars go (FY23 NACUBO-Commonfund Study):

Procurement opportunity in higher ed concentrates in research equipment, IT and cloud infrastructure, facilities operations and maintenance, food service, and managed print/copy contracts. Higher-ed institutions are also some of the heaviest users of cooperative purchasing, see the next section.

Cooperative Purchasing Volume

Cooperative purchasing has quietly become one of the most important channels in SLED. A single competitively awarded cooperative contract can be used by tens of thousands of public agencies nationwide, dramatically reducing both buyer and seller transaction costs. The three largest national cooperatives are Sourcewell, OMNIA Partners, and NASPO ValuePoint.

Sourcewell's growth tells the story of the model: contract sales jumped 15.5% from $5.06B to $5.85B in a single year, and administrative-fee revenue grew 16.8% to $52.1M. Cooperatives are now where many SLED IT, fleet, and facilities purchases land by default, particularly for smaller agencies that lack the staff to run their own RFPs. For vendors looking to plug into this channel, see our cooperative purchasing vendor guide.

Small Business Participation in SLED Contracts

Small business participation in SLED is harder to measure than at the federal level, there is no SBA-style scorecard tracking participation across 90,000+ entities. The picture instead comes from disparity studies, which states and cities commission to defend their preference programs in court.

Findings from recent disparity studies:

• Delaware (2022): Women-owned businesses received less than 3% of total state contracting dollars from 2015–2020. Firms owned by people of color received less than 7% in the same period (2022 Delaware Disparity Study).
• Boston: Minority-owned firms were potentially available for 11.3% of subcontracting dollars but received only 5.5% between 2014–2019 (Urban Institute synthesis).
• Hamilton County, OH: Minority-owned firms were potentially available for ~16% of contracting dollars but received less than 4% in the most recent study (Urban Institute).

The Urban Institute's framing of the broader market: with state and local government procurement exceeding $1 trillion each year, removing barriers to small and minority-owned business participation could materially shift economic outcomes in thousands of communities. At least 45 states plus D.C. have procurement preference policies in place, according to NIGP, but utilization gaps remain wide.

For a starting point on which contracts are most accessible to smaller firms, see our guide to the easiest SLED contracts to win.

SLED IT and Technology Spending

State and local IT is the most contractor-relevant SLED segment, and it is the one with the cleanest forecast data. According to Gartner's U.S. State and Local Government Overview, U.S. state and local government enterprise IT spending will reach $125.4 billion by 2026.

The composition of that spend is being reshaped by AI, cloud, and cybersecurity. From the NASCIO 2025 State CIO Survey (full PDF):

Cybersecurity remains the #1 state CIO priority for the second consecutive year. The 2024 Deloitte-NASCIO Cybersecurity Study found that 86% of state CISOs say their responsibilities are growing, while four state IT budgets allocate less than 1% to cybersecurity and nearly 40% of CISOs say funding falls short of what they need.

For IT vendors, the takeaway is that demand is outpacing budget, which means competitive RFPs but real, structural opportunity. See our analysis of government contracts for IT companies for the practical playbook.

Trends to Watch in 2026

Five forward-looking observations grounded in the data above:

1. The infrastructure wave is hitting state and local procurement officers. The Infrastructure Investment and Jobs Act made $711.8 billion available for grants to tribes, states, localities, and territories, and as of December 2024, agencies had obligated nearly half but spent only about 20% (U.S. GAO, 2025). The remaining ~$355 billion in obligated-but-unspent funds will hit state and local RFPs through 2026–2028.

2. Broadband is still in its peak procurement window. The $42.45 billion BEAD program is administered by states, which competitively award subgrants to ISPs and infrastructure vendors. NTIA has approved 50 of 56 final state proposals (NTIA BEAD Program).

3. Generative AI moves from pilot to procurement. With 82% of state CIO organizations now using GenAI but only 25% having dedicated funding, expect a wave of formal AI-services RFPs in 2026 as states formalize what is currently being done with discretionary or pilot dollars.

4. Cybersecurity gets its own line item. More than half of states now have a dedicated cybersecurity budget line, but the 2024 Deloitte-NASCIO study shows persistent under-funding. State legislatures are increasingly forcing the issue, particularly after K-12 ransomware attacks. Expect SLED cybersecurity spending growth to outpace overall IT growth through 2026.

5. Cooperative purchasing continues to absorb share. Sourcewell's 15.5% year-over-year growth and OMNIA's $30B+ flow-through volume reflect a structural shift: small and mid-sized agencies are choosing pre-competed contracts over running their own RFPs. Vendors who are not on at least one cooperative are increasingly invisible to the long tail of SLED buyers.

Methodology and Sources

Figures in this report were compiled from primary sources between March and April 2026. Where multiple credible sources existed (e.g., NCES official data versus think-tank estimates for K-12 spending), we cite both with the year they reference. Where a number could not be verified to a primary source, we omitted it rather than estimate.

The $1.5T+ "SLED procurement" composite is built by applying procurement-addressable share assumptions (commonly 20–33% per NACUBO and NIGP guidance) to total spending figures from NASBO, NCES, and the Census Bureau. The composite is consistent with industry-cited figures from Bloomberg Government, Pavilion, and NASPO.

Primary sources cited:

1. NASBO 2024 State Expenditure Report, PDF
2. NASBO Fall 2024 Fiscal Survey of States, PDF
3. U.S. Census Bureau, 2017 Census of Governments, census.gov
4. U.S. Census Bureau, Annual Survey of State and Local Government Finances (ALFIN), census.gov
5. NCES, Revenues and Expenditures for Public Elementary and Secondary Schools, NCES press release, May 2024
6. NCES Common Core of Data, nces.ed.gov/ccd
7. Reason Foundation, K-12 Education Spending Spotlight 2025, reason.org
8. EducationData.org Public Education Spending Statistics, educationdata.org
9. NACUBO-Commonfund Study of Endowments (FY25), NACUBO press release, 2026
10. NACUBO Spendmetric Initiative, nacubo.org
11. NASCIO 2025 State CIO Survey: Leading Change Through Uncertain Times, PDF
12. 2024 Deloitte-NASCIO Cybersecurity Study, nascio.org
13. Gartner, U.S. State and Local Government Overview (2024), gartner.com
14. NASPO 2024 Top 10 Priorities for State Procurement, naspo.org
15. NIGP, The Impact of Public Procurement, nigp.org
16. National Association of Counties (NACo), naco.org
17. Sourcewell November 2024 Financial Summary, sourcewell-mn.gov
18. OMNIA Partners (Public Sector), omniapartners.com
19. NASPO ValuePoint, naspovaluepoint.org
20. U.S. GAO, Infrastructure Grants Status (2025), gao.gov
21. NTIA Broadband Equity, Access, and Deployment Program, ntia.gov
22. EdWeek Market Brief, School Districts' Top Purchasing Priorities for 2024-25, marketbrief.edweek.org
23. Urban Institute, Removing Barriers to Participation in Local and State Government Procurement, urban.org
24. Delaware 2022 Disparity Study, Delaware Marketplace
25. K-12 Dive, Ed-Tech Spending Forecast, k12dive.com

If you are evaluating whether SLED contracting is right for your business, the federal-side companion to this report covers the SAM.gov funnel and federal competition data. For the practical "what do I do next" version of this analysis, see SLED.AI's contracting platform, which is where these numbers turn into a pipeline.

Last updated: April 2026.