Policy | 8/26/2025
Feds Tap Google's Gemini AI for 47 Cents per Agency
Under the GSA deal, each federal agency will access Google's Gemini AI and cloud services for a nominal 47 cents. The program, branded Gemini for Government, centralizes procurement under OneGov to boost efficiency, citizen services, and data-driven decision making across agencies. Industry observers expect rapid AI adoption, but caution is advised on governance, security, and long-term reliance on a single vendor.
Overview
The U.S. federal government is edging into a new era of AI-enabled operations, courtesy of a landmark deal with Google. For a nominal price of 47 cents per agency, Google will provide its Gemini AI platform and cloud infrastructure to federal entities under the banner of Gemini for Government. The arrangement is designed to streamline IT procurement through the General Services Administration's (GSA) OneGov strategy, which seeks to consolidate purchasing and reduce friction across hundreds of agencies. In essence, it’s not just about a single tool but about an integrated ecosystem that could reshape how public services are delivered in the coming years.
But wait, there’s more to it than a price tag. Think of Gemini for Government as a complete AI stack you can rent rather than a single application you plug in. It combines Google’s AI-optimized cloud with Gemini’s family of models, ready to power everything from policy research to frontline workflows. Agencies will gain access to sophisticated tools that can search vast document stores, generate video and images with Veo technology, and run research tasks using NotebookLM. The plan also leans into automation with agentic capabilities—essentially AI agents that can carry out multi-step tasks and, importantly, can be customized by departments to fit their own missions.
What’s included
- A holistic AI platform that covers infrastructure, models, and user-facing tools
- Enterprise search across agency data to surface relevant information quickly
- Veo-generated video and image capabilities for communications and analysis
- NotebookLM as an AI-powered research assistant for drafting briefs and reports
- Agentic capabilities that automate complex tasks, plus pre-packaged agents for deep research and idea generation
- Support for building custom AI agents tailored to department needs
Security and compliance: built in
Security and compliance aren’t afterthoughts here. The Gemini for Government platform emphasizes identity and access management, threat protection (both basic and AI-driven), and data privacy measures designed for public sector use. Google notes that the platform meets advanced compliance standards, including SOC 2 Type 2 certification. The included Google Cloud Platform products carry FedRAMP High authorization, a designation that signals robust protections for handling the federal government’s most sensitive, unclassified data. Agencies will have granular controls to manage who can access what and how AI agents are used, which is critical when you’re dealing with sensitive datasets and mission-critical workflows.
Pricing and competition: a strategic stance
The deal’s price point—47 cents per agency—has captured attention in competitive AI circles. It positions Google as a more budget-friendly option in the public sector, especially when you compare it to recent deals priced at around one dollar per agency from rivals like OpenAI and Anthropic. The all-in-one nature of Gemini for Government—covering infrastructure, models, and tools—may make it easier for agencies to adopt a cohesive AI stack rather than juggling multiple vendors. Observers say the arrangement accelerates AI adoption across government in line with broader federal and White House AI initiatives, while preserving a long-term strategic relationship with Google as a partner in public sector technology.
Implications for federal workflows
Imagine a policy office using NotebookLM to draft analysis on regulatory changes, then pushing a refined briefing to decision-makers via a secure workspace. A procurement division could deploy AI agents to comb through contracts, summarize risk factors, and flag redlines for review. A communications office might generate media-ready visuals with Veo to accompany press releases—while keeping a tight eye on governance dashboards, ensuring all uses stay within approved guidelines. In short, Gemini for Government could transform routine tasks into data-informed, faster processes, freeing staff to focus on strategy and citizen outcomes.
Governance, risk, and long-term considerations
With great capability comes great responsibility. Agencies will need to establish clear policies on data handling, access controls, and monitoring of AI agents. That includes auditing how often agents are used, what data they access, and how outputs are reported back into agency systems. There’s also the question of vendor dependence: will Google’s ecosystem become the default for federal AI, and how will agencies manage transitions if policy or technology priorities change? These considerations aren’t barriers so much as guardrails to ensure responsible, auditable AI adoption.
What’s next
The Gemini for Government launch marks a pivotal moment in the public sector’s approach to AI. It signals a willingness to experiment with end-to-end AI platforms at scale, and it creates a template that other vendors will watch closely. If successful, the program could set new standards for procurement, security, and governance in government tech, while shaping how federal agencies operate and deliver services to the American people.
Sources
- https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQGGmkgJpiqQ6JSSsFoJK08bRK080NaQI6hORyDHeWaIPiESvVi0Z9XFo2zrwRy1pNnNgs7TI2uNlchmtUn92mWnmF0H5_APTSU7dpm187YT3eEkwZCmfyUfSdpzRq38AUUSbRP-9seBt4THVvsvbKhtHACWXKpEi-F1K1GKkmbvbhd7HUOdJ5I-qGrJCO8pj5j7ZpWe4eUp5BEv60P2jx2xE-n2, https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQFUnP9-tX1Pf_0il9QJMvfLuAtJm9-VBmZsieJqzt20grG_bAR1yc6tZO8I6M21qjIFMWtRRGznF6Ts64ZyFsZJMMK4DONU20ZEMKdgmVwGT2BHA_aZMr3sUR_wE3U9n4myLLNcq4UmtXaWSmB2j7L6wWgDYKoRCoCjd477cVcdvq1xBTdWoStj-gHGzUNFnliY0RoT9d2j-XRqhhtVmIQ9QUfEqgE1mw==, https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQEps-iMJMTITH386DZ1dhaQcyz-yPgf4oeVnVddDgtrLGy7nDsuA0enxvoKLiHfziuCwETXyQcSUjQLTdoWlM_ay7mWLaE0D6Vj6I9_mltpKxa1f_g6s8_i37Ku92ZfsDUGZS15z3o8zpVsUHEHpW3y07TJscUxUpsneqOC0biBB1muIxgPnN_fbD_3Y42BSh6vfOffZvcZGMQeLbQt, https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQEzdqbn7dFwPx6nsf-Osy0QrBVkn87LmoAbEiWolxSdMTWsVqvc6Ygk2qlsMp25fMKsXYWxv4IeK7aHVivTjehnI5r7Q_9b8WJdi-WzLsqHiaaf7pOSRocloO0K2p9SYycU7iXs7NQ7BjgouRpABZ6YAugtrCtKv4JEGw5jxPzw_qCEESu_vGVQ-iILdVNCTxIRVRYWfEsy7Fi3N9X9HDNMD4mG_Iy-sSAMJ1HE, https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQEEt3q3Q58lQHqkqj9qk3Kz5d-p6j11BTcw8ZxF2pK5q4gVq8i0A3crX6gC8I1W-_h0bXFpQ1Q