The U.S. federal government has finalized a landmark agreement with Google to bring Gemini AI to federal agencies at the symbolic cost of $0.47 per agency. The deal, unveiled by the General Services Administration (GSA), extends through 2026 and is considered one of the most aggressive enterprise AI pricing packages to date.

The program provides NotebookLM, Veo-powered video and image generation, enterprise search, and pre-built AI agents, while giving agencies the ability to create custom workflow automation tools. The arrangement expands Google’s presence in government, where Workspace is already delivered at a 71% discount.

Officials positioned the initiative as part of Trump’s AI Action Plan to modernize government functions. Sundar Pichai, Google’s CEO, described Gemini as a “full stack” innovation platform, while GSA leaders highlighted procurement flexibility.

Security is integral. Google Cloud is certified at FedRAMP High, with the Gemini suite covering identity management, compliance, and threat protection.

Analysts have expressed skepticism about the $0.47 pricing model, arguing it could be a loss-leader designed to bind agencies to Google’s systems. They highlight risks including dependency on a single vendor, vague implementation timelines, and a lack of success benchmarks.

While hailed as a milestone in government AI adoption, the program’s long-term test will be whether it delivers sustainable modernization—or costly dependence once pricing shifts after 2026.