SpendBy County

Federal Contracts vs. Grants: Where Each Dominates

Published January 15, 2026

Federal spending comes in two primary flavors: contracts and grants. Contracts are payments for goods and services — the government buying something. Grants are awards to governments, universities, and nonprofits — the government funding something. The distinction matters enormously for understanding local economies.

We compared the counties with the highest contract obligations to those with the highest grant obligations to reveal how different types of federal investment shape communities.

Top Counties by Federal Contracts

These counties receive the most federal contract dollars — payments for goods and services purchased by federal agencies.

RankCountyStateContract ObligationsTotal Spending

Top Counties by Federal Grants

These counties receive the most federal grant dollars — awards to state/local governments, universities, nonprofits, and other organizations.

RankCountyStateGrant ObligationsTotal Spending

Contracts vs. Grants: What the Split Reveals

Contract-heavy counties tend to have strong private-sector economies tied to defense, technology, and professional services. Grant-heavy counties often have large public-sector institutions — universities, hospitals, and government agencies — that serve as conduits for federal funding.

For local businesses, contract-heavy counties offer direct sales opportunities to the federal government. For researchers and nonprofits, grant-heavy counties indicate robust funding ecosystems for proposal-driven work.

Methodology

Data from USASpending.gov, U.S. Department of the Treasury, FY2024. Contract and grant obligations are reported separately in USASpending.gov. Counties are ranked by each category independently.

Data source: USASpending.gov, U.S. Department of the Treasury, FY2024 (Oct 2023 – Sep 2024). All figures are estimates based on federal obligation data and may not reflect current spending.

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