Amazon Web Services is providing a $1 billion coupon to the US government as part of its “OneGov” agreement, aimed at modernizing IT systems and accelerating artificial intelligence adoption across civilian agencies. The deal, set to run through 2028, could yield up to $1 billion in cost savings for federal agencies shifting to cloud services.
The General Services Administration announced the partnership on Thursday, framing it as a cornerstone of President Trump’s AI strategy. The agreement will support workforce training in AI tools and establish technical infrastructure needed for large language models and machine learning applications.
Federal Acquisition Service Commissioner Josh Gruenbaum described the deal as “a foundational piece to help implement the President’s AI Action Plan.” AWS CEO Matt Garman said the partnership marks a significant milestone in the digital transformation of government services, positioning AWS to help federal agencies achieve operational efficiencies while building a more secure and innovative government.
The partnership includes built-in incentives for direct procurement, aiming to bypass value-added resellers and save taxpayer dollars. Amazon is set to provide $1 billion in credits for core AWS cloud services, as well as helping agencies shift from on-premises infrastructure to the cloud and training resources for federal employees.
Similar agreements are reportedly in the works with other major cloud providers, including Microsoft and Google. The deal represents a significant opportunity for AWS to expand its presence in the federal government, which is estimated to be worth $80-100 billion dollars.
Source: https://www.politico.com/news/2025/08/07/amazon-trump-admin-1-billion-coupon-00497009