Last year, we noted that the FAR Council (DoD, GSA, and NASA) issued a proposed rule to adjust the statutory acquisition thresholds for inflation. Under 41 U.S.C. § 1908, the federal government must adjust these thresholds every five years to account for inflation. Effective October 1, 2025, the updated thresholds have gone into effect. In this post, we’ll look at the new thresholds.

The finalized rule, issued on August 27, 2025, mostly matches the proposed rule from 2024, although there are some differences.