AWS offers the US government a $1 billion credit for the continued operation of cloud services
The U.S. government has entered a significant partnership with Amazon Web Services (AWS) through a OneGov agreement, providing up to $1 billion in cloud computing credits, modernization support, and training programs for federal civilian agencies through 2028[1][3][5]. This deal, facilitated by the General Services Administration (GSA), aims to accelerate the government's shift to cloud infrastructure, reduce IT costs, enhance operational efficiency, and boost adoption of artificial intelligence (AI) technologies[1][2][3].
Key components of the agreement include:
- AWS Credits: Discounts on core AWS cloud services to reduce infrastructure and operational expenses.
- Modernization Credits: Financial support to help agencies upgrade legacy IT systems and applications.
- Training Credits: Funding for AWS training and certification programs to build workforce cloud skills.
- Direct Partnership Model: Streamlined procurement allowing agencies to engage directly with AWS more efficiently, speeding contract execution and cloud adoption[1][3][5].
The partnership supports the White House’s ongoing efforts to streamline and centralize federal IT procurement, which helps reduce costs and improve agility across government agencies[2]. It also underpins President Trump’s AI Action Plan by equipping federal agencies with modern cloud infrastructure and advanced AI capabilities, helping solidify U.S. leadership in AI technology globally[3][5].
According to GSA officials, the deal will enable agencies to migrate aging on-premises IT infrastructure to the cloud faster, adopt AI-driven solutions, and innovate government services while maximizing taxpayer value[3][5]. AWS CEO Matt Garman emphasized that this agreement marks “a significant milestone in the large-scale digital transformation of government services,” facilitating operational efficiencies and secure infrastructure growth as agencies deploy AI and machine learning technologies[5].
In addition to the AWS agreement, the GSA has also confirmed a partnership with OpenAI[6]. The partnership is expected to contribute to the adoption of advanced technologies like artificial intelligence and machine learning within federal agencies.
The agreement with AWS reflects an ongoing trend of hyperscalers and lower-tier providers offering significant discounts to the US Government. Other recent discounts include up to 70% off certain Docusign plans and Adobe plans, and as much as 75% off Oracle cloud platforms.
For more details on specific federal agencies involved or technical aspects of services offered, please refer to our subsequent reports.
[1] GSA.gov - OneGov Agreement with Amazon Web Services [2] WhiteHouse.gov - Modernizing Government Technology [3] WhiteHouse.gov - Artificial Intelligence (AI) Initiative [4] WhiteHouse.gov - AI Action Plan [5] AWS.com - U.S. Government Partners with AWS for $1 Billion OneGov Agreement [6] GSA.gov - GSA Partners with OpenAI to Support AI Adoption in Federal Agencies
- This partnership between the U.S. government and Amazon Web Services, facilitated by the General Services Administration, not only provides significant cloud computing credits but also modernization and training support, aiming to boost gaming and computing resources and technology within federal agencies.
- The expanded collaboration between the General Services Administration and OpenAI is expected to foster the adoption of advanced technologies like artificial intelligence and machine learning, further modernizing government services and enhancing the use of technology in gaming and computing by federal agencies.
