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When Agencies Cancel Contracts, Where Does the Work Go?
DHS projected $10.5 billion in savings from canceled contracts. GAO found a net of about $92 million. In report GAO-26-109096, published September 3, 2026, GAO found that DHS fully or partially terminated 438 contracts between January 20 and September 30, 2025, after reviewing more than 17,000. Net deobligations came to just over $92 million. To cover requirements it still had, DHS obligated more than $1.7 billion in fiscal year 2025 through existing government-wide contracts. Canceled work often doesn’t disappear. It moves to vehicles agencies already trust. What Did GAO Find About DHS Contract Cancellations? The savings DHS reported were a ceiling, not a result. GAO said the $10.5 billion figure represented the most that could have been obligated on the canceled contracts, not what DHS would have actually spent. The numbers GAO reported: Measure Figure
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