The government will pay more for everything it buys, starting next year

The US government is raising the dollar amounts for its purchasing rules to account for inflation. This means that the thresholds for things like simplified purchases and small business contracts will be higher, allowing more contracts to fall under less strict rules.

Every five years, the government adjusts its purchasing limits for inflation. This means that what counted as a 'small purchase' in 2019 will still count as a 'small purchase' in 2025, even though prices have gone up. This change makes it easier for government agencies to buy things without triggering more complex procurement rules. It also means more contracts will be available to small businesses under simplified procedures.