Amazon Web Services will provide the Trump administration a $1 billion coupon to utilize services for “cloud adaptation, modernization, and training for federal agencies.” “The agreement will accelerate large-scale IT transformation across government and spur AI innovation. AWS’s partnership with GSA demonstrates a shared public-private commitment to enhancing America’s AI leadership,” the U.S. General Services Administration (GSA) stated in a release. “The Trump Administration is rapidly modernizing out-of-date government systems, streamlining processes, and delivering savings to the American taxpayer through centralized procurement,” said GSA Acting Administrator Michael Rigas. “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,” Rigas continued. Amazon Web Services gifts $1 billion coupon to the Trump admin for cloud access https://t.co/k3I9c3MIik — John Solomon (@jsolomonReports) August 7, 2025 POLITICO shared further details: 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. Federal Acquisition Service Commissioner and DOGE staffer Josh Gruenbaum, who has played a leading role in negotiating the deal, called it “a foundational piece to help implement President Trump’s AI Action Plan.” The deal provides $1 billion in credits that federal agencies can draw down on for core AWS cloud services — which will account for the majority of the $1 billion in value — as well as helping agencies shift from on-premises infrastructure to the cloud and training resources for federal employees. “A government report in March said the federal government annually spends more than $100 billion to manage IT systems, acquire new systems, or update old ones,” Reuters noted. Similar deals are reportedly in the works with other major cloud providers, including Google and Microsoft. “We’re just getting started,” a GSA official said, according to POLITICO. “This is a first-of-its-kind agreement, and there’s a lot more to come both in the cloud space and across other high-impact industries,” the official added. “Great work by @USGSA securing another strong OneGov deal to deliver $1B in savings on AWS Cloud services. As the AI revolution accelerates, affordable cloud partnerships are key to sustainable government spending,” the Department of Government Efficiency (DOGE) stated. Great work by @USGSA securing another strong OneGov deal to deliver $1B in savings on AWS Cloud services. As the AI revolution accelerates, affordable cloud partnerships are key to sustainable government spending. https://t.co/CkrfokuhTn — Department of Government Efficiency (@DOGE) August 7, 2025 Reuters has more: In 2022, the Pentagon awarded $9 billion worth of cloud computing contracts to AWS, Microsoft Corp, Alphabet Inc’s Google and Oracle Corp. The Joint Warfighting Cloud Capability was the multi-cloud successor to the Joint Enterprise Defense Infrastructure (JEDI), an IT modernization project to build a large, common commercial cloud for the Defense Department. Amazon during Trump’s first term sued after the $10 billion JEDI contract was awarded to Microsoft. Amazon said Trump exerted improper pressure on military officials to steer the contract away from the company.