Amazon Web Services gifts $1 billion coupon to the Trump admin for cloud access

The Trump administration on Thursday announced it reached a lucrative OneGov agreement with Amazon Web Services (AWS) that will provide $1 billion in savings for federal agencies shifting to cloud services.

The deal is part of the administration's large-scale technological transformation across the federal government, which it expects to help spur innovation with artificial intelligence (AI). 

The agreement will give the administration savings of up to $1 billion for cloud adoption, modernization, and training for federal agencies, and will run through December 31, 2028, the General Services Administration (GSA) announced.

“The Trump Administration is rapidly modernizing out-of-date government systems, streamlining processes, and delivering savings to the American taxpayer through centralized procurement,” Acting GSA Administrator Michael Rigas said in a statement. “Through this new agreement with AWS, federal agencies will be able to enhance delivery of critical services, leverage cloud and advanced AI technologies, and dramatically reduce costs."

The deal is not exclusive to Amazon and similar agreements are currently in the works with companies like Google and Microsoft, according to Politico. Oracle has already given the administration a 75% discount on its technology.

AWS is considered the most broadly adopted cloud service and supports more than 11,000 government agencies globally.

Misty Severi is a news reporter for Just The News. You can follow her on X for more coverage.