Amazon Web Services is giving the Trump administration a $1 billion coupon to use their services for the federal government’s digital transformation and artificial intelligence capacity. On Thursday, the General Services Administration announced a sweeping “OneGov” agreement with Amazon Web Services that would yield up to $1 billion in cost savings for federal agencies shifting to cloud services.
The deal, set to run through 2028, is being framed by administration officials as a cornerstone of both the administration’s AI strategy and its broader effort to modernize government IT systems.
The agreement is expected to accelerate cloud adoption across dozens of civilian agencies, support workforce training in AI tools, and establish the technical infrastructure needed to power large language models and machine learning applications. It’s the second major OneGov cloud services deal since President Donald Trump’s executive order on procurement consolidation earlier this year.
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