The federal government is expected to disburse $466.6 billion in grant funding to state and local governments in 2008 alone.
We expect that a cumulative total of $3.2 trillion will be disbursed to states and localities via this channel between 2008 and 2013. Assuming that a modest 1% of this grant funding underwrites state and local information technology (IT) spending, the grant-driven market for government IT vendors will amount to $31.7 billion over the forecast period. This Industry Insights report identifies the likely trends for federal grants to state and local governments and points toward the specific grant programs most likely to drive IT spending. (Numerous hyperlinks offer access to additional programmatic information from each granting agency.)
