Texas state agencies spent more than $6.3 billion on IT-related goods and services during Fiscal Year 2025, with a handful of departments leading both procurement activity and vendor engagement.
Updated data from the Texas Comptroller’s “Payments to Payee” dashboard highlights the top five agencies and vendors that shaped the state’s tech landscape in the fiscal year spanning Sept. 1, 2024, through Aug. 31, 2025.
The Health and Human Services Commission led all agencies in IT-related spending, with about $899 million paid out, reflecting its ongoing investments in health IT systems and service delivery platforms. The Texas Department of Transportation followed closely, spending approximately $882 million during the same period. Governor-Fiscal, which captures consolidated state-level disbursements, came in at $860 million, while the Department of Information Resources (DIR) recorded $820 million. The Texas Military Department rounded out the top five, spending about $371 million.
Vendor payments mirrored these trends, with several long-standing technology providers continuing to capture significant state business. The Texas Facilities Commission was the top payee in FY 2025, receiving nearly $895 million, primarily for contracted services. DIR followed with about $596 million in receipts, reflecting payments for shared technology services such as the statewide technology center and telecommunications.
Deloitte Consulting LLP, a major IT and consulting vendor for Texas, received $327 million in payments. Team Housing Solutions Inc. was paid about $317 million, while cloud services provider Rackspace US Inc. received just under $250 million. Other vendors in the top 10 included Atos IT Solutions and Services Inc. ($139 million), AT&T Corp. ($128 million) and SHI Government Solutions Inc. ($73 million).
The $6.3 billion total reflects spending from 176 state agencies and nearly 8,100 vendors over the course of the fiscal year. The most significant categories of expenditure included purchased contracted services, IT services and payments to the statewide technology center, underscoring the state’s continued emphasis on infrastructure, modernization and managed services.
The periodic reports of spending on IT goods and services by agencies and departments in state government are compiled by Industry Insider — Texas as a way of highlighting procurements and trends.
Top Agencies, Vendors Drive $6.3B in Texas Tech Spend for FY 25
What to Know:
- The state of Texas spent about $6.3 billion on IT-related goods and services in Fiscal Year 2025.
- The Health and Human Services Commission and Department of Transportation were the top-spending agencies.
- Deloitte, Rackspace and the Texas Facilities Commission were among the highest-paid vendors.
