Government buying follows the budget calendar, and the budget calendar is different for federal agencies, most states, a handful of outlier states, counties, cities and school districts. A vendor who knows when each customer's money arrives and when it expires can time outreach, inventory and staffing much better than one who treats every month the same.
The federal fiscal year
The federal fiscal year runs from October 1 to September 30. Fiscal year 2027 starts October 1, 2026.
Q4: July through September
Federal agencies commonly spend a large share of their contract dollars in the fourth quarter, and September is usually the busiest month. Much of the annual appropriation for operations expires at the end of the fiscal year if it isn't obligated, so contracting offices work through a backlog of requirements before September 30. This "year-end spending" pattern has been documented for years in GAO and inspector general reports.
What that means for a small vendor:
- Lots of quick-turnaround RFQs and small purchases in August and September, especially for IT hardware, software renewals, furniture and supplies
- Buyers who are short on time and value vendors who respond fast and cleanly
- Delivery deadlines that are tight, sometimes requiring delivery or performance to start before the end of the fiscal year
Be ready before July. Have your SAM.gov registration active, your pricing sources lined up and your quote templates ready. Year-end is the wrong time to be figuring out your registration.
Q1: October through December
The new fiscal year often starts under a continuing resolution if Congress hasn't passed full-year appropriations. Under a CR, agencies can generally keep operating at prior-year levels but are usually restricted from starting new programs, so new contract starts can be delayed. Q1 is often slow for new awards, but it's a good time for relationship-building and responding to sources sought notices for requirements planned later in the year.
Q2 and Q3: January through June
Once full-year funding is in place, agencies plan and solicit larger requirements. RFPs for bigger contracts with longer evaluation periods tend to come out here so they can be awarded before year-end. Agencies publish procurement forecasts of planned contracts, and SBA's contracting guide points small businesses to them. Checking them in the spring shows you what's coming.
State fiscal years
According to the National Conference of State Legislatures, 46 states start their fiscal year on July 1. The exceptions are New York (April 1), Texas (September 1), and Alabama and Michigan (October 1). Some states budget for two years at a time, but still use annual fiscal years for spending.
For most states, that means:
- Spring: agency budget requests and legislative sessions determine next year's funding. Big new programs appear here first, in budget documents and news coverage.
- April to June: end-of-year spending for agencies with money left, though state rules on carrying funds forward vary a lot.
- July to September: new-year funding available, contract renewals, and solicitations for projects funded in the new budget.
For a state with a different fiscal year, shift the calendar. A vendor working Texas state agencies should expect the end-of-year push in the summer before September 1. State pages such as Texas bids let you watch what's actually being released month by month.
Local government and schools
Counties and cities choose their own fiscal years, within state law. July 1 and October 1 are both common, and some use the calendar year. Check each customer's adopted budget, which is almost always posted on its website.
Local budgets usually go through a public process: a proposed budget from the manager or executive, public hearings, and adoption by the council or commission, often a few months before the fiscal year starts. Reading the proposed budget tells you which capital projects and equipment replacements are funded.
School districts mostly run July 1 to June 30, with purchasing heavily shaped by the school year and summer installation window. See selling to school districts for their calendar.
Grants add another calendar
A lot of state and local buying is paid with federal or state grant money, which has its own periods of performance and spending deadlines. A county spending a federal grant that ends in March will push to buy before then, whatever its own fiscal year says. When you see grant-funded language in a solicitation, check the grant's deadline, because it can explain why the delivery timeline is so tight. Open funding opportunities themselves are listed on the grants page.
A sample outreach plan
Here's how an IT reseller selling to federal agencies and July-start state and local customers might lay out the year:
| Months | Focus |
|---|---|
| January to March | Read state and local proposed budgets. Meet federal small business offices and program staff. Review agency procurement forecasts. |
| April to June | Bid on state and local year-end purchases and summer projects. Line up federal year-end supply sources and pricing. |
| July to September | Federal Q4: respond quickly to RFQs. Start of new state and local fiscal years: watch for contract renewals and new solicitations. |
| October to December | Federal Q1: slower awards, respond to RFIs and sources sought. Build relationships for next year's requirements. Review wins and losses. |
Practical tips
- Track each key customer's fiscal year start in your CRM.
- Budget documents are public. Search them for your category ("network refresh," "fleet replacement," "HVAC") to spot funded projects before solicitations appear.
- Don't assume "use it or lose it" applies everywhere. Some state and local funds carry over; some capital money spans multiple years.
- Plan cash flow. Year-end surges mean more orders at once, and government payment timing doesn't speed up to match.
- Expect delays around budget impasses. When a state or the federal government starts a year without an enacted budget, new awards may stall.
For where the solicitations themselves get posted, see our guide to finding government bids.
Frequently asked questions
When does the federal fiscal year start?
October 1. It runs through September 30, and the fourth quarter (July to September) is commonly the busiest for federal contracting.
Do all states use a July 1 fiscal year?
According to NCSL, 46 states do. New York starts April 1, Texas September 1, and Alabama and Michigan October 1.
What is a continuing resolution and why does it matter?
It is temporary federal funding when full-year appropriations have not passed. Agencies generally operate at prior-year levels and usually cannot start new programs, which can delay new contracts.
Sources: www.ncsl.org www.sba.gov www.acquisition.gov