How the US Government Spends 7 Billion a Year on Unused Software Licenses

The Fiscal Policy Podcast with Fexingo: Government Budgets, Stimulus, and Public Spending · Jul 2, 2026 · 6m · transcript

Every year, federal agencies spend an estimated $7 billion on software licenses that nobody uses. In this episode, Lucas and Luna dig into a 2025 Government Accountability Office report that found nearly 40 percent of software seats across 24 major agencies were inactive or underutilized. They explore why this happens — from fragmented procurement systems to the fear of losing budget allocations — and what it says about the broader challenge of government IT management. The conversation touches on specific examples from the Department of Veterans Affairs and the Department of Agriculture…