US Federal News Bureau

GSA Strikes $1 bn OneGov Cloud Agreement to Accelerate Federal AI Adoption

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Written by: CDO Magazine Bureau

Updated 1:13 PM UTC, Wed August 20, 2025

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The U.S. General Services Administration (GSA) has signed a landmark OneGov agreement with Amazon Web Services (AWS), offering up to $1 billion in savings for federal agencies adopting cloud services, modernizing IT systems and advancing AI capabilities through December 31, 2028.
“The Trump Administration is rapidly modernizing out-of-date government systems, streamlining processes and delivering savings to the American taxpayer through centralized procurement.Through this new agreement with AWS,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,” said Michael Rigas, GSA Acting Administrator.
The GSA-AWS OneGov agreement offers up to $1 billion in incentive credits for federal civilian agencies, including savings on cloud services, modernization support, and AWS training. Agencies gain access to AWS experts and migration programs to modernize infrastructure, cut costs, and speed AI adoption.
Supporting over 11,000 government agencies globally, AWS aims to help the U.S. reduce IT spending, enhance services and strengthen its AI leadership.
Federal Acquisition Service Commissioner Josh Gruenbaum emphasized, “GSA’s OneGov continues to deliver critical technology solutions to federal agencies while securing the best value for our most important stakeholders — the American taxpayer.”
AWS CEO Matt Garman called the deal “a significant milestone in the large-scale digital transformation of government services,” noting AWS’s role in helping agencies adopt AI and machine learning while improving efficiency and security.

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