Federal Shifts Bring New Local Contracting Opportunities in Defense, Border Security, and Conservation

By Jacquie Spearman, SBTDC Director of GCAP 

On July 4, 2025, President Trump signed the One Big Beautiful Bill into law—a sweeping legislative package that includes significant changes to tax policy, energy production, border security, and military modernization. The following day, an Executive Order established the President’s Make America Beautiful Again Commission, outlining a national focus on conservation, public land access, and economic development through outdoor recreation.

These federal actions significantly affect local governments and businesses in North Carolina, especially those that work with the government, are in a good position to help with federal projects in defense, construction, or environmental services, or are already doing so.

Key Areas of Impact for Local Contractors

1. Increased Procurement in Defense and Military Modernization

With dedicated funding for the modernization of military capabilities and new defense systems which include the Golden Dome missile defense program, the federal procurement in this sector is expected to expand. This may create more opportunities for companies that provide aerospace, logistics, advanced manufacturing, or base-support services, especially in areas with a strong military presence like North Carolina.

2. Expanded Border Security Funding and Local Involvement

Funding is included in the legislation to support state and local immigration enforcement agencies, hire more staff, and finish the physical border infrastructure. Although North Carolina is not a border state, related funding is often provided through grants and subcontracts related to detention services, transportation logistics, and data systems. As implementation progresses, businesses and local governments in these areas may see opportunities for indirect contracts.

3. Infrastructure and Air Traffic Control Investment

The law also sets aside $12.5 billion for upgrading air traffic control systems along with infrastructure investments tied to national security. This could increase demand for construction firms, systems integrators, and engineering service providers at the local level, particularly those familiar with federal compliance requirements.

New Emphasis on Outdoor Conservation and Public Lands

4. Restoration of Public Lands and Outdoor Recreation Sites

The July 3 Executive Order directs federal agencies to prioritize the restoration of national parks, forests, and waterways focusing on access, maintenance, and recreation. For businesses in North Carolina located near national forests, seashores, or public lands, this could lead to contracting opportunities for trail and facility restoration, water quality projects, and outdoor recreation infrastructure.

5. Interagency Commission to Guide Conservation Spending

The new Make America Beautiful Again Commission will coordinate conservation priorities across federal agencies. Although the full extent of implementation is still unfolding, this effort could lead to new programs that fund wildlife recovery, clean water access, and collaborative conservation with state agencies, all of which can lead to new contracting opportunities.

What Contractors Should Consider

Federal priorities for contracting are changing as a result of the size and scope of these shifts. Aligning with these changing needs may be advantageous for local companies with the appropriate skills. However, it’s necessary to keep up with the interpretation and application of these policies. Be mindful of deadlines and anticipated effects.

We advise that businesses follow legal, policy, and industry briefings hosted by professional associations, trade groups, and subject matter experts to understand the implications for compliance, eligibility, and contract performance.

The GCAP team is here to help with market research, registration support, and strategic advising, but we defer legal interpretation and regulatory guidance to qualified professionals.