Cloud · March 28, 2026 · GAN-012

Federal Cloud Spending Hits $14.8 Billion in FY2025

OMB's annual IT Dashboard report shows federal cloud spending reaching $14.8 billion in FY2025, with cloud compliance training identified as the most…

Cloud · March 28, 2026 · GAN-012

OMB's annual IT Dashboard report shows federal cloud spending reaching $14.8 billion in FY2025, with cloud compliance training identified as the most significant barrier to further adoption.

OMB's FY2025 IT Dashboard annual report documents federal cloud spending reaching $14.8 billion — a 34 percent increase from FY2024 — while identifying cloud compliance expertise as the single most frequently cited barrier to further cloud adoption across federal agencies.

The report analyzed 2,847 cloud migration projects across 87 agencies. Forty-one percent of projects reported schedule delays attributed to FedRAMP compliance challenges, including difficulty interpreting authorization requirements and inadequate understanding of shared responsibility models.

Cloud cost management emerged as a significant concern, with agencies collectively overspending cloud budgets by an estimated $1.2 billion in FY2025 due to inadequate cloud cost governance practices. Agencies with FinOps-trained staff reduced cloud waste by an average of 28 percent.

The DoD's GovCloud migration program experienced 14-month delays attributed directly to insufficient FedRAMP expertise among program staff, providing a cautionary tale regarding workforce readiness for large cloud transitions.

GovAcademy's cloud catalog — including FedRAMP Readiness (GA-003), Cloud Security Architecture for GovCloud (GA-011), and Cloud Cost Governance (GA-032) — directly addresses the specific barriers identified in the OMB report.

Cloud Cost Governance for Government (GA-032) has seen a 280 percent enrollment increase since the OMB report's preview findings were shared with agency CIOs in February 2026.

OMB has included cloud compliance training completion rates as a new metric in the FY2026 FISMA reporting requirements, creating institutional incentives for agencies to document and track cloud-related professional development.