Short answer: SLED is the US public sector minus the federal government. It covers the 50 states and their agencies, more than 91,000 local governments and the public schools, colleges and universities they fund.
What the letters stand for
S is state. All 50 state governments and their agencies: transportation, health and human services, revenue, corrections, IT and many more. Each state runs its own budget and its own purchasing rules.
L is local. Counties, cities, towns, townships and special districts. Special districts are single-purpose governments, such as water, fire, transit, parks or port authorities. They make up the largest group.
E is education. Public K-12 school districts and public higher education, including community colleges and state universities. Some definitions also include charter networks and education service agencies.
How many SLED organizations are there?
More than most people expect. The US Census counted 91,438 local governments in 2025, before you add the 50 states, their agencies and public colleges.
| Type | Count |
|---|---|
| Counties | 3,031 |
| Municipalities | 19,489 |
| Townships | 16,184 |
| Special districts | 40,199 |
| Independent school districts | 12,535 |
| Total local governments | 91,438 |
Source: US Census Bureau, 2025 count, as compiled by SLED AI.
That count matters. It means SLED is not one market but tens of thousands of separate buyers, each with its own budget, its own board or council and its own purchasing policy.
How big is SLED spending?
Very big, and measured in different ways. Deltek estimates total SLED purchasing at about $2 trillion a year. State spending alone was about $3.06 trillion in fiscal 2024, according to the National Association of State Budget Officers. That figure includes salaries and federal pass-through money, so it is not all procurement.
Public schools spent $869.6 billion on current expenditures in fiscal 2024, according to the National Center for Education Statistics. Again, most of that is staff pay.
Sources: Deltek; NASBO via SLED AI; NCES.
How SLED differs from federal
| SLED | Federal | |
|---|---|---|
| Number of buyers | Tens of thousands of separate entities | A few hundred agencies and offices |
| Rules | Set by each state, county, city or district | One main rulebook, the FAR |
| Contract vehicles | State contracts and cooperative contracts such as Sourcewell, OMNIA Partners, NASPO ValuePoint and H-GAC | GSA schedules and agency vehicles |
| Fiscal year | Mostly July 1 for states; varies locally | October 1 |
How SLED organizations buy
Most SLED purchasing follows a ladder based on dollar value.
- Micro-purchases. Small buys with little or no competition, often on a purchasing card. For purchases paid with federal award money, the micro-purchase threshold is $15,000 from Oct 1, 2025.
- Informal quotes. Usually 2 or 3 written quotes. The ceiling varies widely, from $25,000 for some Texas state purchases to $250,000 for documented quotes in Colorado.
- Formal solicitations. An invitation for bids, where the lowest responsive bid wins, or a request for proposals, where best value wins.
- Cooperative contracts. An agency buys from a contract another public entity has already competed. This is often called piggybacking and it saves months.
Sources: OMB revisions to 2 CFR 200 (90 FR 41872); E&I Cooperative Services, Small Dollar Thresholds by State, Dec 2024.
Timing matters too. 46 states start their fiscal year on July 1, according to the National Conference of State Legislatures. Budgets are built in spring, and new-year purchase orders often open in July and August.
Why SLED matters for hiring
SLED employers carry a large share of US job openings. The Bureau of Labor Statistics counted 618,000 open state and local government jobs in Aug 2026, a preliminary figure. Many of those roles compete directly with private employers, especially in IT, engineering and finance.
Budgets are tight. Stateline reported in June 2026 that 14 states were eliminating vacant positions. When permanent headcount is hard to add, many agencies turn to contract talent. MissionSquare Research Institute found that 52% of states and 40% of local governments hired temporary or contract staff in the past year.
Sources: BLS JOLTS, Aug 2026; Stateline, Jun 2026; MissionSquare Research Institute, 2026.
What this means if you hire for a SLED employer
You will be working inside rules: minimum qualifications, published pay bands, approvals and purchasing thresholds. A good staffing partner learns those rules at intake, prices in writing and knows which purchasing route fits your agency.
That is how we work at Konnex. See our SLED staffing services, or read how public agencies can buy from us.
Quick answers
What does SLED stand for?
State, local and education. It covers state governments, local governments such as counties, cities and special districts, and public education from K-12 districts to public colleges.
Is SLED the same as public sector?
SLED is the non-federal part of the US public sector. Public sector also includes federal agencies, which buy under different rules.
How big is the SLED market?
Deltek estimates total SLED purchasing at about $2 trillion a year. Treat it as a broad estimate across all goods and services.