The One Big Beautiful Bill Act, signed into law on July 4, delivers an unprecedented $190.6 billion to the Department of Homeland Security and its components—doubling DHS’ near-term resources and creating one of the most expansive multi-year acquisition runways in its history. Most of the money is available through fiscal 2029, setting the stage for a sustained period of modernization and contracting activity.
Top DHS leaders, such as Sec. Kristi Noem and U.S. Citizenship and Immigration Services Director Joseph Edlow, will present how GovCons can support their modernization efforts at the 2025 Homeland Security Summit on Nov. 12. Save your spot now—tickets are in low supply.
According to GovWin, the law “effectively doubles DHS’s budget for the next several years.” New data from a recent Deltek report reinforces that context: DHS’ discretionary budget has grown 33 percent since 2016, and contractor spending now equals 41 percent of the department’s total budget, with reliance on contractors up 73 percent since 2015. OBBBA therefore expands an already contractor-heavy ecosystem.
How Is DHS Funded Under the One Big Beautiful Bill?
The law’s allocations reach nearly every DHS component:
- Immigration and Customs Enforcement: $74.9 billion, focused on detention facilities, workforce growth and training.
- Customs and Border Protection: $66.8 billion, for barrier construction, surveillance systems and AI/ML-driven inspection.
- U.S. Coast Guard: $24.2 billion, supporting cutters, aircraft and shore-facility modernization.
- Federal Emergency Management Agency: $2.9 billion, emphasizing event security, counter-UAS and local preparedness.
- Secret Service: $1.2 billion, for personnel and training.
- Federal Law Enforcement Training Centers: $750 million, for facility and curriculum expansion.
- DHS-wide funds: $20 billion, split evenly between a State Border Security Reinforcement Fund and border-operations reimbursements.
The American Immigration Council estimates roughly $170.7 billion directly supports border and immigration enforcement, underscoring the administration’s emphasis on deterrence, personnel and technology.
Deltek places this infusion within a larger trajectory: DHS requested $63.7 billion for FY 2026, nearly flat year over year but anchored by CBP ($19.3 billion), USCG ($13.2 billion) and ICE ($10.9 billion). That continuity shows the bill is not a short-term stimulus but a structural reset for DHS budgeting.
What Does the Bill Mean for Border Tech & Infrastructure?
CBP’s share will drive large-scale modernization across the southern border. Contractors should anticipate opportunities in:
- Barrier systems with integrated cameras, lighting and sensors
- AI- and ML-enabled inspection and vetting systems
- Non-intrusive inspection equipment and mobile surveillance
- Air and marine platform sustainment
- Checkpoint modernization and training infrastructure
Deltek projects that equipment and technology spending will be among DHS’ fastest-growing contract categories through FY 2026, increasing from roughly $11 billion to $18 billion annually. Firms positioned in analytics, automation and multi-domain logistics stand to gain.
Who Does the Big Beautiful Bill Benefit Most?
While border and enforcement missions dominate, the U.S. Coast Guard is a major winner. Its $24.2 B supports fleet recapitalization—Offshore Patrol Cutters, Fast Response Cutters, Arctic Security Cutters and long-range UAS—alongside new homeports and hangars.
Deltek identifies these maritime and aviation investments as a prime driver of the contractor-addressable market, which could rise from $27 billion in FY 2025 to $56 billion in FY 2026. The biggest segments: management and administrative support ($14.7 billion), equipment ($11.7 billion) and professional services ($11.4 billion).
Meanwhile, the State Border Security Reinforcement Fund opens a new tier of opportunities. Contractors able to deliver detection, surveillance and logistics solutions for state and local buyers will find $10 B in sub-federal grants available through FY 2029.
How Will DHS Use Its Flexibility & Oversight Authority?
Both GovWin and Deltek note that Sec. Kristi Noem’s June 2025 policy memo now requires department-level review for any obligation over $100,000, tightening oversight while preserving flexibility under OBBBA’s multi-year appropriations.
Contractors should expect longer award timelines but greater spending predictability once awards are made. DHS will emphasize:
- Transparent pricing and cost justification
- Mission outcome alignment
- Past performance and audit readiness
Don’t miss Sec. Noem’s keynote address at the 2025 Homeland Security Summit on Nov. 12! This is your chance to ask your burning questions and network with industry and government peers alike. Register now!
What’s Next for DHS Contracting in FY 2026?
Deltek highlights several large procurements on the horizon that align with OBBBA funding priorities:
- $18–20 billion CISA Cybersecurity Products and Services IDIQ (anticipated FY 2027 award)
- $3 billion CBP Temporary Facilities and Services recompete (FY 2026)
- $3 billion TACCOM TechOps III (FY 2026)
- $2.2 billion ICE ISAP V (Alternatives to Detention) (FY 2026)
These programs reflect DHS’ blended priorities: physical infrastructure, cybersecurity and workforce sustainment.
What Should GovCons Do Now?
- Map capabilities to funded priorities. Match portfolios to CBP AI/ML systems, ICE facilities and USCG fleet support.
- Attend Potomac Officers Club’s 2025 Homeland Security Summit. The Nov. 12 event will gather prominent DHS leadership to address contractors and communicate their needs.
- Engage state channels. The $10 billion reinforcement fund will flow through governors’ offices—an opening for regional integrators.
- Position for major recompetes. Deltek’s FY 2026 pipeline shows recompetes in temporary facilities, cyber services and tech ops.
- Build compliance depth. Prepare for scrutiny under Noem’s $100K approval rule.
- Track mid-cycle reprogramming. DHS can redirect funds to emerging threats, especially in cyber and border AI.
The Bottom Line
The One Big Beautiful Bill marks a defining moment for DHS modernization—an expansion of resources and a tightening of oversight that will shape the GovCon market for the rest of the decade.
As Homeland Security Summit keynote Sec. Kristi Noem said, the measure “gives DHS the strength to secure America’s borders, seas, skies and cyber frontiers for the rest of the decade.” For contractors, that means long-term demand coupled with high competition and increasing expectations for performance and value.
