Balancing budgets and services

Procurement solutions for local government

15 June 2026

Introduction

Local governments nationwide face mounting budget constraints while working to uphold quality services for their communities. Striking the right balance between financial limitations and service delivery has become increasingly difficult, making strategic procurement solutions more essential than ever. This e-guide will showcase how local government procurement officers can leverage innovative tools and strategies to achieve cost savings, optimize processes, and align with community values.

Partnering with Amazon Business, local governments are stretching their budgets further while optimizing procurement processes. Through curated catalogs, advanced analytics, and cooperative contracts, Amazon Business offers tailored solutions for more sustainable and efficient procurement with savings of up to 10%.

Local government spending

Total spending: In 2024, U.S. local governments spent a significant amount on various sectors. For example, spending on pensions was around $375.3 billion, health care $1,299.2 billion, and education $475.6 billion.

Federal transfers: The federal government provided about $1.1 trillion to state and local governments in fiscal year 2024, which accounted for 16.2% of all federal spending.²

Expected in 2025

Overall increase: Total U.S. government spending, including federal, state, and local, is projected to increase by 9.3% from 2024 to 2025.³ Federal transfers: For local governments, spending on healthcare is expected to increase by 6.6%, education by 3.5%, and transportation by 7.0%.

The dual challenge of fiscal constraints and service expectations

Communities depend on local governments to deliver essential services such as public safety, infrastructure maintenance, and education. These services are at the heart of a well-functioning society, ensuring safety, quality of life, and opportunities for everyone. However, shrinking budgets and increasing demands often force difficult decisions that can compromise these critical functions. Balancing fiscal constraints with rising service expectations has become a challenge for local governments.

This economic reality calls for procurement officers to move beyond traditional purchasing methods and adopt innovative strategies to maximize resources, reduce costs, and ensure compliance with strict regulations. Finding ways to stretch budgets while maintaining the quality of services requires creativity, efficiency, and access to the right tools.

Amazon Business is stepping up to help address these challenges by offering access to competitively priced products, streamlined ordering processes, and robust analytical insights. With features such as customized purchasing controls, tax exemption solutions, and detailed spending reports, Amazon Business is designed to simplify procurement and increase transparency. These solutions free up valuable resources, allowing local governments to allocate more funding and attention to high-priority community programs that directly impact residents’ lives.

By the numbers

Amazon Business government customers represent

90

of the 100

most populous local governments.
50

states and D.C.

are active on Amazon Business.

Cost-saving strategies to stretch government resources

For local government procurement leaders, cost-saving strategies are essential to maximizing limited budgets while meeting the growing needs of their communities. By implementing effective approaches to stretch resources, procurement leaders can ensure taxpayer dollars are spent efficiently, support vital programs, and invest in long-term infrastructure. These strategies also enable governments to navigate economic uncertainties and rising costs while maintaining transparency and accountability in the procurement process.

Three ways Amazon Business can support:

Government procurement becomes seamless and cost-effective with Amazon Business’ curated catalogs. These catalogs offer discounts of up to 25% on frequently purchased items like office supplies and technology products. Additionally, tools such as product basket analysis and quantity discounts ensure that every dollar spent delivers maximum value.
Bulk purchasing options such as case packs and pallet quantities provide additional savings on essential goods. Beyond the immediate cost reductions, bulk purchasing minimizes variability in pricing and mitigates supply chain risks, ensuring governments have access to critical items when they’re needed most.
Spend insights play a crucial role in identifying inefficiencies and areas of overspending. By leveraging analytics tools, departments gain the ability to track compliance, forecast demand, and manage budgets across departments. This data-driven approach supports informed decisionmaking, helping local governments maintain tight budgetary controls while improving the efficiency and transparency of their spending.

Amazon Business makes our lives a lot easier, brings us tremendous convenience, guarantees that we’re getting very good pricing. We wish we had done it sooner.

Denise Marcella, Quality Assurance Administrator, City of Las Vegas

Procurement efficiency through innovation

Improving procurement efficiency through innovation means streamlining the purchasing process to save time, reduce costs, and ensure better outcomes for local governments. By adopting modern tools and strategies, it becomes easier to source high-quality goods and services while maintaining transparency and compliance.

Simplified process: Manual workflows are a thing of the past. Automate approvals, track transactions, and integrate with procurement systems, reducing admin tasks and freeing employees to focus on strategic priorities.
Faster fulfilment: With Prime Business, a paid feature, local governments get free two-day shipping for quick access to crucial purchases. In emergencies, this ensures faster delivery of life-saving equipment and essential supplies.
Reduce overhead: Streamline vendor management and purchasing to save time and reduce complexity. Multi-user accounts and approval workflows ensure policy alignment and consistency.

Community values in action

State of Utah success story

The State of Utah faced challenges with off-contract spending, as employees often used personal Amazon accounts for purchases that lacked visibility and compliance with state policies. This created inefficiencies, increased risks of fraud, and made it difficult to ensure responsible use of taxpayer dollars. Seeking tools to gain control and visibility over these purchases, the state turned to Amazon Business. Initially focused on compliance and transparency, the relationship has since evolved into a partnership centered on continuous innovation in procurement.

With Amazon Business, Utah implemented tools like Guided Buying, Spend Visibility dashboards, and Business Prime benefits to streamline purchasing and ensure compliance with state policies. These tools allowed the state to set limits, block unapproved items, and track spending in real time. Additionally, the platform’s vast selection and reliable delivery ensured that even remote offices could access essential supplies quickly, addressing logistical challenges and improving efficiency across the board.

This transformation has delivered significant benefits to both the state and its communities. Agencies can now focus on their core missions, from education to public safety, without being hindered by outdated procurement processes. Remote offices receive timely deliveries, ensuring equitable access to resources statewide. By modernizing its approach, Utah has created a more transparent, efficient, and accountable system, setting a new benchmark for public sector innovation.

"There are a lot of benefits we still expect to gain from Amazon Business, given that it’s an evergrowing company that innovates with intention on the behalf of public sector organizations. I’m looking forward to seeing what else comes from Amazon Business and being able to share those benefits with the state." - Chris Hughes, Director, State of Utah Division of Purchasing & General Services

How savings translate to preserving services

For local governments, every dollar saved in procurement is a dollar that can be reinvested in community services. These savings directly impact essential areas, from maintaining critical infrastructure projects like roads and bridges to funding new public health initiatives, educational programs, and community development efforts.

Every cost-efficient decision contributes to creating safer, healthier, and more vibrant neighborhoods that residents can see and feel daily. With Amazon Business, local governments can simplify and streamline procurement processes, access competitive pricing on a wider range of products, and track spending more effectively through robust reporting tools.

By procuring wisely with tools from Amazon Business, governments not only maximize savings but also ensure transparency and efficiency, allowing them to allocate resources where they are needed most—without compromising the quality of services their communities depend on. This approach empowers governments to do more with less and build stronger, more resilient communities for the future.